Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Partnerships for improving water and energy access efficiency and sustainability Prepared by UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) with United Nations University (UNU) and United Nations Industrial Development Organization (UNIDO)
2014 UN-Water Annual International Zaragoza Conference 13-16 January 2014
Table of Contents
1 Introduction
2 The UN and the Water-Energy Nexus
21 The Nexus in the International Agenda
22 What is the UN doing
23 What have we learnt
24 2014 Road map on the Water-Energy nexus
3 Water and Energy Scenarios and Challenges
31 Water and Energy today and projections
32 Water and Energy New and bigger challenges ahead
4 The Water and Energy Nexus OpportunitiesampChoices
41 Feasible but Complex Choices
42 The Water-Energy Nexus Opportunities
43 Trade-offs and complex solutions
5 Making the Case for Partnerships
51 Why Partnerships
52 Challenges for partnerships
53 Policy and Governance what can governments do to create an enabling environment
for partnerships and improve cooperation
6 Building Partnershipsndashpartnerships in practice
61 The Business Case for Partnerships to promote integrated planning and policies
62 Industry Partnerships to Ensure Water and Energy Efficiency and Sustainability
63 Local authorities and Water and Energy Partnerships
64 Partnerships for Policy Research and Innovation
7 Key Lessons on Partnerships
8 References
02
03
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability 1
1IntroductionIntr
oduc
tion
1
Securingequitableaccessefficiencyandsustainabilityofwaterandenergymayrequirefocusing
onanexaminationofhowpartnershipscanhelpindevelopingappropriateresponsesandmanage
tradeshyoffsidentifysynergiesandmaximizecoshybenefitsforwaterandforenergy
Securingaccessiscentral
Securingaccesstobothwaterandenergyisasocialchallengeregardlessofthestageofeconomic
developmentthelocationortheresourcesavailableWaterandenergyarebothdriversandconstraints
onhumandevelopmentandforthisreasonthechallengesposedbybothalwaysdeserveaprivileged
placeatthetopofthepolicyagenda Thisisparticularlytrueforthepoorestlevelofsocietywhere
fulfillingtheMillenniumDevelopmentgoalsisstillpendingandthelackofadequateaccesstowater
andsanitationandenergysourcestocoverbasicneedsisstillthemainbarriertoovercomingpoverty
andexclusion
AccesstoWampE
WampEcanbelimitingfactorsforsustainableeconomicgrowthwhichistheultimatehopefor
widespreadpovertyreductionUncertainwatersupplyisalsobecomingamajorbusiness
riskforsomeenergysectormanagersSecuringaccesstomodernenergyservicesrepresents
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
amajorchallenge
WampEEfficiency
Aparticularemphasishastobeplacedonincreasingthewateruseefficiencyinenergy
productionndashessentiallyproducingmorekWhperdropofwaterandviceversaManyefficiency
improvementsinutilitiessuchastherepairofleaksrequireregularattentiontoensurea
steadysupplyofnewwaterandenergysavings
WampESustainability
Recognizingthatecosystemsprovideavarietyofservicestothewaterndashenergynexuscan
helpthemanagementoftradeshyoffsandensurethatshortshytermgainsdonotundermine
servicesthatarecriticalforresilienceandlongshytermenvironmentalsustainability
Economicgrowthanddemography-themaindrivers
Thenatureofthechallengemaychangewiththelevelofeconomicdevelopmentbutisfarfrom
eliminatedonceasocietyfindsitswayoutofpovertyGrowingeconomiesandpopulationsare
driversofwaterandenergyscarcityThetransitiontowardsadevelopedsocietyrequiressecure
1 ThisreportisthesummaryofpresentationsanddebatesduringtheUNshyWaterAnnualZaragozaConference2014Thisconference
waspreparatoryofWorldWaterDay2014focusedonthenexusofwaterandenergyThisconferencewaspreparatoryofWorldWater
Day2014focusingonthenexusofwaterandenergyItwascoshyorganisedwiththeUnitedNationsUniversity(UNU)theUnitedNations
IndustrialDevelopmentOrganization(UNIDO)andinpartnershipwithUNESCOUNECEWBUNEPWWAPUNESCAPAquafedWfWPWCCE
ICLEIandtheGovernmentofSpaintheEbroRiverBasinAuthorityandtheMunicipalityofZaragoza
andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand
servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth
anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture
Maintainingadvancesrequiresdecouplinggrowthfromuseofresources
Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained
requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy
relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans
andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand
eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe
abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater
andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto
theenvironment
Asustainablefutureispossible
AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe
evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement
inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends
andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative
optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe
promiseintoareality
Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked
Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe
worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded
inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal
powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe
mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear
andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration
isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut
downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)
EnergyneedsWater
bull90ofpowergenerationworldwideiswatershyintensive
bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand
environmentalconsiderations
bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of
allindustrialwaterwithdrawals
bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand
isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin
severalEuropeancountries
bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15
ofglobalelectricityproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
04
05
Converselythewatersectorneedsenergyndashmainlyintheformofelectricityndashtoextracttreatand
transportwaterThedegradationofwatersourcesimpliesincreasingamountsofenergytopump
thesameamountofwaterfromdeeperaquifersorfarthersourcesAnyalternativetoreallocate
watertoitsmoreproductiveusesmightrequireenergyfortransportandtoadaptwaterquality
toitsnewusesandplacesIntr
oduc
tion
1
Waterneedsenergy
bullAbout8oftheglobalenergygenerationisusedforpumpingtreatingandtransportingwater
bullWaterbeingdenserequiresmuchenergytomoveitWatertransportanddistributionare
energyintensiveprocessesReallocatingwaterthroughusesandplacesmightincrease
thevalueperdropbutincreasetheuseofenergy
bullDrinkingwaterformunicipalsystemstypicallyrequiresextensivetreatmentandonceit
becomeswastewateritrequirestreatingagainbeforeitcanbedischargedtotheenvironment
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
WaterneedsenergyenergyneedswaterandhumandevelopmentneedsbothOneofthemainrisks
inthesearchforasustainabledevelopmentpathcomesfromignoringthebasicfactthatthereis
nootheroptiontohandlingthewaterandenergychallengesinanintegratedmannerTheserisks
arealreadypresentinsomeofthemostrelevantalternativestofacewaterandenergychallenges
WaterstressmightputadditionalpressureovertoenergyGoingfurtheranddeepertoobtainwater
aswaterbecomesscarcerequiresmoreenergyfortransportandpumpingThenonshyconventional
sourcesthatmaycompensateforthelackoffreshwatermayrequireenergyintensivetransformation
processessuchasdesalinationofseaandbrackishwaterorregenerationofwastewater
Growingdemandforlimitedwatersuppliesputsincreasingpressureonwaterintensiveenergy
producerstoseekalternativeapproachesespeciallyinareaswhereenergyiscompetingwithother
majorwaterusers(agriculturemanufacturingdrinkingwaterandsanitationservicesforcities)
andwherewaterusesmayberestrictedtomaintainhealthyecosystems
AccesstoenergymightworsenthewatercrisisUncertaintiesrelatedtothegrowthandevolution
ofglobalenergyproduction(egviagrowthinunconventionalsourcesofgasandoilorbiofuels)
andthepriceofenergycancreatesignificantriskstowaterresourcesandotherusersTheincreasing
momentumintheproductionofbiofuelshascreatedagrowingdemandonwaterresourcesEven
amodest5shareofbiofuelsinroadtransportdemand(aspredictedbytheInternationalEnergy
Agencyfor2030)couldincreasethewaterdemandforirrigationbyasmuchas20(WWDR2012)
Avoidresponsesthatfixoneproblemattheexpenseofworseningtheother
Themultipleinterdependenciesbetweenwaterandenergymeanthatanyresponseneedstotackle
thetwosectorsinanintegratedwayIgnoranceofthesebasicfactsmayleadtoresponsesthattry
toadoptalternativesthatfixoneproblemattheexpenseofworseningtheotherandthatmightfail
intheend(seeboxbelow)
Coordinatedresponsescantakeadvantageofthesynergiesbetweenwaterandenergy
Insteadofignoringtheinterdependenciescoordinatedresponsescantakeadvantageofthesynergies
betweenwaterandenergySavingenergymeanssavingwaterandviceversaEnhancingthe
efficiencyinthewaythatwaterisusedtranslatesintolowerpressuresoverfreshwatersources
butalsointoareduceddemandofenergyforwatertreatmentpumpingandtransportandtheninto
evenlesswaterrequiredtoproduceenergyMovingtowardslesswaterintensiveenergysources
andlessenergyintensivewatersourcessavingwaterandenergyinanyproductionandconsumption
processreallocatingwaterandenergytotheirmorevaluableusesareallalternativesthattake
advantageofthesesynergiesinopeningtheoptionofproducingmorewithless
Theriskofanon-coordinatedwaterandenergyresponse
bullDesalinatedwaterinvolvestheuseofatleast752TWhyearwhichisabout04ofglobal
electricityconsumption
bullModernbiofuelsrepresentonly08ofglobalfinalenergyconsumptionbuttheircontribution
toenergysupplyisexpectedtogrowrapidlyIfbioenergyfeedstockisproducedonirrigated
landsthenthepotentialimpactofbiofuelsonwaterresourcesisalsoofmajorconcern
bullUnconventionaloil(egoiltarsands)andgasproduction(eglsquofrackingrsquo)aregenerallymore
waterintensivethanconventionaloilandgasproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Partnershipsfornexussolutions
Nexussolutionscanandhavebeenimplementedbybuildingpartnershipstoallowactingtogether
andsupportingfindingandimplementingeffectiveactionsBuildingpartnershipsconsistsof
makingagreementstoreapthebenefitsofcooperationinthewaterandenergysectorNotonlyare
thechallengesinvolvedintheWaterandEnergyNexusbeyondthescopeofanyindividualpublic
authoritybusinessorstakeholderbutactionscanbecoordinatedinsuchawaythatthewholeis
greaterthanthesumofitsparts
Partnershipsmightinvolvedifferentactorsfromtheenergyandwatercommunityincluding
businessesdifferentlevelsofgovernmentcivilsocietyacademiaandallthosewithastakein
findingthewaytowardsasustainablesocialresponsetothewaterandenergychallengesWhile
recognizingthediversityofperceptionsinterestsandrolesallpartnershipsareinagreementto
cooperateinreachingamutualbenefit
MutualbenefitsareessentialtomakepartnershipsworkforsustainabledevelopmentForinstance
acrediblepolicytoincreasewatersecurityinthelongtermcanreducetheriskofinvestmentsin
theenergysectorandthesimultaneousincreaseinbothwaterandenergysecuritycanresultin
importantcompetitiveadvantagesfortheentirenationaleconomyAlongtermwaterandenergy
strategywithcleartargetsonthewaterandenergyportfolioaprospectiveroleforrenewableenergy
andnonshyconventionalwatersourcesmightspeedupthediffusionofthebestavailabletechnologies
andfosterinnovationTheseareonlysomeofthesynergiesthatpartnershipscancreateinorder
toensureasustainabledevelopment
ButpartnershipsrequireanenablingenvironmentInstitutionsandtechnologiesstillfavorthe
mutualignoranceofwaterandenergyissuesbothinbusinessandpolicymakingWaterrisksare
notadequatelyconsideredintheassessmentofenergyprojectsandplansandenergyissuesstill
playamarginalroleifanyinwaterprojectsappraisalandriverbasinmanagementplans
PartnershipsmighthavemultiplefunctionsTheymayservetointegratepoliciesandbroadenthe
scopeandenhancetheeffectivenessofbothwaterandenergyplanningbutalsotocoordinate
differentsectoralpoliciessuchaslandplanningruraldevelopmentnatureconservancy
manufacturingetcallwithinasustainableuseofwaterandenergy
06
07
Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust
andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance
Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations
andenablinginstitutionalframeworksamongotheradvantages
PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater
andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin
solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities
theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe
chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges
involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability
ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend
inthemediumandthelongterm
2TheUNandtheWaterndashEnergyNexus
21TheNexusintheInternationalAgenda
SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe
GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote
findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas
ofwaterandenergy
TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing
itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices
thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare
atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse
TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012
markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions
andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting
decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable
DevelopmentGoalsandthepostshy2015developmentdialogue
22WhatistheUNdoing
TopursuetheseobjectivestheUNhasorganisedthefollowingactions
Decade of Sustainable Energy for All (2014-2024)
ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024
astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy
issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda
Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy
andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould
reducethestressonwater
Sustainable Energy for All initiative
TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe
privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked
objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
us
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Table of Contents
1 Introduction
2 The UN and the Water-Energy Nexus
21 The Nexus in the International Agenda
22 What is the UN doing
23 What have we learnt
24 2014 Road map on the Water-Energy nexus
3 Water and Energy Scenarios and Challenges
31 Water and Energy today and projections
32 Water and Energy New and bigger challenges ahead
4 The Water and Energy Nexus OpportunitiesampChoices
41 Feasible but Complex Choices
42 The Water-Energy Nexus Opportunities
43 Trade-offs and complex solutions
5 Making the Case for Partnerships
51 Why Partnerships
52 Challenges for partnerships
53 Policy and Governance what can governments do to create an enabling environment
for partnerships and improve cooperation
6 Building Partnershipsndashpartnerships in practice
61 The Business Case for Partnerships to promote integrated planning and policies
62 Industry Partnerships to Ensure Water and Energy Efficiency and Sustainability
63 Local authorities and Water and Energy Partnerships
64 Partnerships for Policy Research and Innovation
7 Key Lessons on Partnerships
8 References
02
03
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability 1
1IntroductionIntr
oduc
tion
1
Securingequitableaccessefficiencyandsustainabilityofwaterandenergymayrequirefocusing
onanexaminationofhowpartnershipscanhelpindevelopingappropriateresponsesandmanage
tradeshyoffsidentifysynergiesandmaximizecoshybenefitsforwaterandforenergy
Securingaccessiscentral
Securingaccesstobothwaterandenergyisasocialchallengeregardlessofthestageofeconomic
developmentthelocationortheresourcesavailableWaterandenergyarebothdriversandconstraints
onhumandevelopmentandforthisreasonthechallengesposedbybothalwaysdeserveaprivileged
placeatthetopofthepolicyagenda Thisisparticularlytrueforthepoorestlevelofsocietywhere
fulfillingtheMillenniumDevelopmentgoalsisstillpendingandthelackofadequateaccesstowater
andsanitationandenergysourcestocoverbasicneedsisstillthemainbarriertoovercomingpoverty
andexclusion
AccesstoWampE
WampEcanbelimitingfactorsforsustainableeconomicgrowthwhichistheultimatehopefor
widespreadpovertyreductionUncertainwatersupplyisalsobecomingamajorbusiness
riskforsomeenergysectormanagersSecuringaccesstomodernenergyservicesrepresents
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
amajorchallenge
WampEEfficiency
Aparticularemphasishastobeplacedonincreasingthewateruseefficiencyinenergy
productionndashessentiallyproducingmorekWhperdropofwaterandviceversaManyefficiency
improvementsinutilitiessuchastherepairofleaksrequireregularattentiontoensurea
steadysupplyofnewwaterandenergysavings
WampESustainability
Recognizingthatecosystemsprovideavarietyofservicestothewaterndashenergynexuscan
helpthemanagementoftradeshyoffsandensurethatshortshytermgainsdonotundermine
servicesthatarecriticalforresilienceandlongshytermenvironmentalsustainability
Economicgrowthanddemography-themaindrivers
Thenatureofthechallengemaychangewiththelevelofeconomicdevelopmentbutisfarfrom
eliminatedonceasocietyfindsitswayoutofpovertyGrowingeconomiesandpopulationsare
driversofwaterandenergyscarcityThetransitiontowardsadevelopedsocietyrequiressecure
1 ThisreportisthesummaryofpresentationsanddebatesduringtheUNshyWaterAnnualZaragozaConference2014Thisconference
waspreparatoryofWorldWaterDay2014focusedonthenexusofwaterandenergyThisconferencewaspreparatoryofWorldWater
Day2014focusingonthenexusofwaterandenergyItwascoshyorganisedwiththeUnitedNationsUniversity(UNU)theUnitedNations
IndustrialDevelopmentOrganization(UNIDO)andinpartnershipwithUNESCOUNECEWBUNEPWWAPUNESCAPAquafedWfWPWCCE
ICLEIandtheGovernmentofSpaintheEbroRiverBasinAuthorityandtheMunicipalityofZaragoza
andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand
servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth
anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture
Maintainingadvancesrequiresdecouplinggrowthfromuseofresources
Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained
requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy
relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans
andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand
eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe
abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater
andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto
theenvironment
Asustainablefutureispossible
AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe
evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement
inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends
andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative
optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe
promiseintoareality
Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked
Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe
worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded
inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal
powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe
mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear
andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration
isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut
downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)
EnergyneedsWater
bull90ofpowergenerationworldwideiswatershyintensive
bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand
environmentalconsiderations
bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of
allindustrialwaterwithdrawals
bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand
isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin
severalEuropeancountries
bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15
ofglobalelectricityproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
04
05
Converselythewatersectorneedsenergyndashmainlyintheformofelectricityndashtoextracttreatand
transportwaterThedegradationofwatersourcesimpliesincreasingamountsofenergytopump
thesameamountofwaterfromdeeperaquifersorfarthersourcesAnyalternativetoreallocate
watertoitsmoreproductiveusesmightrequireenergyfortransportandtoadaptwaterquality
toitsnewusesandplacesIntr
oduc
tion
1
Waterneedsenergy
bullAbout8oftheglobalenergygenerationisusedforpumpingtreatingandtransportingwater
bullWaterbeingdenserequiresmuchenergytomoveitWatertransportanddistributionare
energyintensiveprocessesReallocatingwaterthroughusesandplacesmightincrease
thevalueperdropbutincreasetheuseofenergy
bullDrinkingwaterformunicipalsystemstypicallyrequiresextensivetreatmentandonceit
becomeswastewateritrequirestreatingagainbeforeitcanbedischargedtotheenvironment
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
WaterneedsenergyenergyneedswaterandhumandevelopmentneedsbothOneofthemainrisks
inthesearchforasustainabledevelopmentpathcomesfromignoringthebasicfactthatthereis
nootheroptiontohandlingthewaterandenergychallengesinanintegratedmannerTheserisks
arealreadypresentinsomeofthemostrelevantalternativestofacewaterandenergychallenges
WaterstressmightputadditionalpressureovertoenergyGoingfurtheranddeepertoobtainwater
aswaterbecomesscarcerequiresmoreenergyfortransportandpumpingThenonshyconventional
sourcesthatmaycompensateforthelackoffreshwatermayrequireenergyintensivetransformation
processessuchasdesalinationofseaandbrackishwaterorregenerationofwastewater
Growingdemandforlimitedwatersuppliesputsincreasingpressureonwaterintensiveenergy
producerstoseekalternativeapproachesespeciallyinareaswhereenergyiscompetingwithother
majorwaterusers(agriculturemanufacturingdrinkingwaterandsanitationservicesforcities)
andwherewaterusesmayberestrictedtomaintainhealthyecosystems
AccesstoenergymightworsenthewatercrisisUncertaintiesrelatedtothegrowthandevolution
ofglobalenergyproduction(egviagrowthinunconventionalsourcesofgasandoilorbiofuels)
andthepriceofenergycancreatesignificantriskstowaterresourcesandotherusersTheincreasing
momentumintheproductionofbiofuelshascreatedagrowingdemandonwaterresourcesEven
amodest5shareofbiofuelsinroadtransportdemand(aspredictedbytheInternationalEnergy
Agencyfor2030)couldincreasethewaterdemandforirrigationbyasmuchas20(WWDR2012)
Avoidresponsesthatfixoneproblemattheexpenseofworseningtheother
Themultipleinterdependenciesbetweenwaterandenergymeanthatanyresponseneedstotackle
thetwosectorsinanintegratedwayIgnoranceofthesebasicfactsmayleadtoresponsesthattry
toadoptalternativesthatfixoneproblemattheexpenseofworseningtheotherandthatmightfail
intheend(seeboxbelow)
Coordinatedresponsescantakeadvantageofthesynergiesbetweenwaterandenergy
Insteadofignoringtheinterdependenciescoordinatedresponsescantakeadvantageofthesynergies
betweenwaterandenergySavingenergymeanssavingwaterandviceversaEnhancingthe
efficiencyinthewaythatwaterisusedtranslatesintolowerpressuresoverfreshwatersources
butalsointoareduceddemandofenergyforwatertreatmentpumpingandtransportandtheninto
evenlesswaterrequiredtoproduceenergyMovingtowardslesswaterintensiveenergysources
andlessenergyintensivewatersourcessavingwaterandenergyinanyproductionandconsumption
processreallocatingwaterandenergytotheirmorevaluableusesareallalternativesthattake
advantageofthesesynergiesinopeningtheoptionofproducingmorewithless
Theriskofanon-coordinatedwaterandenergyresponse
bullDesalinatedwaterinvolvestheuseofatleast752TWhyearwhichisabout04ofglobal
electricityconsumption
bullModernbiofuelsrepresentonly08ofglobalfinalenergyconsumptionbuttheircontribution
toenergysupplyisexpectedtogrowrapidlyIfbioenergyfeedstockisproducedonirrigated
landsthenthepotentialimpactofbiofuelsonwaterresourcesisalsoofmajorconcern
bullUnconventionaloil(egoiltarsands)andgasproduction(eglsquofrackingrsquo)aregenerallymore
waterintensivethanconventionaloilandgasproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Partnershipsfornexussolutions
Nexussolutionscanandhavebeenimplementedbybuildingpartnershipstoallowactingtogether
andsupportingfindingandimplementingeffectiveactionsBuildingpartnershipsconsistsof
makingagreementstoreapthebenefitsofcooperationinthewaterandenergysectorNotonlyare
thechallengesinvolvedintheWaterandEnergyNexusbeyondthescopeofanyindividualpublic
authoritybusinessorstakeholderbutactionscanbecoordinatedinsuchawaythatthewholeis
greaterthanthesumofitsparts
Partnershipsmightinvolvedifferentactorsfromtheenergyandwatercommunityincluding
businessesdifferentlevelsofgovernmentcivilsocietyacademiaandallthosewithastakein
findingthewaytowardsasustainablesocialresponsetothewaterandenergychallengesWhile
recognizingthediversityofperceptionsinterestsandrolesallpartnershipsareinagreementto
cooperateinreachingamutualbenefit
MutualbenefitsareessentialtomakepartnershipsworkforsustainabledevelopmentForinstance
acrediblepolicytoincreasewatersecurityinthelongtermcanreducetheriskofinvestmentsin
theenergysectorandthesimultaneousincreaseinbothwaterandenergysecuritycanresultin
importantcompetitiveadvantagesfortheentirenationaleconomyAlongtermwaterandenergy
strategywithcleartargetsonthewaterandenergyportfolioaprospectiveroleforrenewableenergy
andnonshyconventionalwatersourcesmightspeedupthediffusionofthebestavailabletechnologies
andfosterinnovationTheseareonlysomeofthesynergiesthatpartnershipscancreateinorder
toensureasustainabledevelopment
ButpartnershipsrequireanenablingenvironmentInstitutionsandtechnologiesstillfavorthe
mutualignoranceofwaterandenergyissuesbothinbusinessandpolicymakingWaterrisksare
notadequatelyconsideredintheassessmentofenergyprojectsandplansandenergyissuesstill
playamarginalroleifanyinwaterprojectsappraisalandriverbasinmanagementplans
PartnershipsmighthavemultiplefunctionsTheymayservetointegratepoliciesandbroadenthe
scopeandenhancetheeffectivenessofbothwaterandenergyplanningbutalsotocoordinate
differentsectoralpoliciessuchaslandplanningruraldevelopmentnatureconservancy
manufacturingetcallwithinasustainableuseofwaterandenergy
06
07
Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust
andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance
Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations
andenablinginstitutionalframeworksamongotheradvantages
PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater
andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin
solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities
theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe
chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges
involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability
ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend
inthemediumandthelongterm
2TheUNandtheWaterndashEnergyNexus
21TheNexusintheInternationalAgenda
SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe
GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote
findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas
ofwaterandenergy
TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing
itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices
thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare
atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse
TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012
markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions
andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting
decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable
DevelopmentGoalsandthepostshy2015developmentdialogue
22WhatistheUNdoing
TopursuetheseobjectivestheUNhasorganisedthefollowingactions
Decade of Sustainable Energy for All (2014-2024)
ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024
astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy
issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda
Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy
andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould
reducethestressonwater
Sustainable Energy for All initiative
TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe
privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked
objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
us
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
03
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability 1
1IntroductionIntr
oduc
tion
1
Securingequitableaccessefficiencyandsustainabilityofwaterandenergymayrequirefocusing
onanexaminationofhowpartnershipscanhelpindevelopingappropriateresponsesandmanage
tradeshyoffsidentifysynergiesandmaximizecoshybenefitsforwaterandforenergy
Securingaccessiscentral
Securingaccesstobothwaterandenergyisasocialchallengeregardlessofthestageofeconomic
developmentthelocationortheresourcesavailableWaterandenergyarebothdriversandconstraints
onhumandevelopmentandforthisreasonthechallengesposedbybothalwaysdeserveaprivileged
placeatthetopofthepolicyagenda Thisisparticularlytrueforthepoorestlevelofsocietywhere
fulfillingtheMillenniumDevelopmentgoalsisstillpendingandthelackofadequateaccesstowater
andsanitationandenergysourcestocoverbasicneedsisstillthemainbarriertoovercomingpoverty
andexclusion
AccesstoWampE
WampEcanbelimitingfactorsforsustainableeconomicgrowthwhichistheultimatehopefor
widespreadpovertyreductionUncertainwatersupplyisalsobecomingamajorbusiness
riskforsomeenergysectormanagersSecuringaccesstomodernenergyservicesrepresents
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
amajorchallenge
WampEEfficiency
Aparticularemphasishastobeplacedonincreasingthewateruseefficiencyinenergy
productionndashessentiallyproducingmorekWhperdropofwaterandviceversaManyefficiency
improvementsinutilitiessuchastherepairofleaksrequireregularattentiontoensurea
steadysupplyofnewwaterandenergysavings
WampESustainability
Recognizingthatecosystemsprovideavarietyofservicestothewaterndashenergynexuscan
helpthemanagementoftradeshyoffsandensurethatshortshytermgainsdonotundermine
servicesthatarecriticalforresilienceandlongshytermenvironmentalsustainability
Economicgrowthanddemography-themaindrivers
Thenatureofthechallengemaychangewiththelevelofeconomicdevelopmentbutisfarfrom
eliminatedonceasocietyfindsitswayoutofpovertyGrowingeconomiesandpopulationsare
driversofwaterandenergyscarcityThetransitiontowardsadevelopedsocietyrequiressecure
1 ThisreportisthesummaryofpresentationsanddebatesduringtheUNshyWaterAnnualZaragozaConference2014Thisconference
waspreparatoryofWorldWaterDay2014focusedonthenexusofwaterandenergyThisconferencewaspreparatoryofWorldWater
Day2014focusingonthenexusofwaterandenergyItwascoshyorganisedwiththeUnitedNationsUniversity(UNU)theUnitedNations
IndustrialDevelopmentOrganization(UNIDO)andinpartnershipwithUNESCOUNECEWBUNEPWWAPUNESCAPAquafedWfWPWCCE
ICLEIandtheGovernmentofSpaintheEbroRiverBasinAuthorityandtheMunicipalityofZaragoza
andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand
servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth
anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture
Maintainingadvancesrequiresdecouplinggrowthfromuseofresources
Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained
requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy
relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans
andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand
eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe
abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater
andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto
theenvironment
Asustainablefutureispossible
AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe
evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement
inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends
andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative
optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe
promiseintoareality
Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked
Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe
worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded
inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal
powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe
mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear
andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration
isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut
downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)
EnergyneedsWater
bull90ofpowergenerationworldwideiswatershyintensive
bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand
environmentalconsiderations
bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of
allindustrialwaterwithdrawals
bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand
isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin
severalEuropeancountries
bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15
ofglobalelectricityproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
04
05
Converselythewatersectorneedsenergyndashmainlyintheformofelectricityndashtoextracttreatand
transportwaterThedegradationofwatersourcesimpliesincreasingamountsofenergytopump
thesameamountofwaterfromdeeperaquifersorfarthersourcesAnyalternativetoreallocate
watertoitsmoreproductiveusesmightrequireenergyfortransportandtoadaptwaterquality
toitsnewusesandplacesIntr
oduc
tion
1
Waterneedsenergy
bullAbout8oftheglobalenergygenerationisusedforpumpingtreatingandtransportingwater
bullWaterbeingdenserequiresmuchenergytomoveitWatertransportanddistributionare
energyintensiveprocessesReallocatingwaterthroughusesandplacesmightincrease
thevalueperdropbutincreasetheuseofenergy
bullDrinkingwaterformunicipalsystemstypicallyrequiresextensivetreatmentandonceit
becomeswastewateritrequirestreatingagainbeforeitcanbedischargedtotheenvironment
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
WaterneedsenergyenergyneedswaterandhumandevelopmentneedsbothOneofthemainrisks
inthesearchforasustainabledevelopmentpathcomesfromignoringthebasicfactthatthereis
nootheroptiontohandlingthewaterandenergychallengesinanintegratedmannerTheserisks
arealreadypresentinsomeofthemostrelevantalternativestofacewaterandenergychallenges
WaterstressmightputadditionalpressureovertoenergyGoingfurtheranddeepertoobtainwater
aswaterbecomesscarcerequiresmoreenergyfortransportandpumpingThenonshyconventional
sourcesthatmaycompensateforthelackoffreshwatermayrequireenergyintensivetransformation
processessuchasdesalinationofseaandbrackishwaterorregenerationofwastewater
Growingdemandforlimitedwatersuppliesputsincreasingpressureonwaterintensiveenergy
producerstoseekalternativeapproachesespeciallyinareaswhereenergyiscompetingwithother
majorwaterusers(agriculturemanufacturingdrinkingwaterandsanitationservicesforcities)
andwherewaterusesmayberestrictedtomaintainhealthyecosystems
AccesstoenergymightworsenthewatercrisisUncertaintiesrelatedtothegrowthandevolution
ofglobalenergyproduction(egviagrowthinunconventionalsourcesofgasandoilorbiofuels)
andthepriceofenergycancreatesignificantriskstowaterresourcesandotherusersTheincreasing
momentumintheproductionofbiofuelshascreatedagrowingdemandonwaterresourcesEven
amodest5shareofbiofuelsinroadtransportdemand(aspredictedbytheInternationalEnergy
Agencyfor2030)couldincreasethewaterdemandforirrigationbyasmuchas20(WWDR2012)
Avoidresponsesthatfixoneproblemattheexpenseofworseningtheother
Themultipleinterdependenciesbetweenwaterandenergymeanthatanyresponseneedstotackle
thetwosectorsinanintegratedwayIgnoranceofthesebasicfactsmayleadtoresponsesthattry
toadoptalternativesthatfixoneproblemattheexpenseofworseningtheotherandthatmightfail
intheend(seeboxbelow)
Coordinatedresponsescantakeadvantageofthesynergiesbetweenwaterandenergy
Insteadofignoringtheinterdependenciescoordinatedresponsescantakeadvantageofthesynergies
betweenwaterandenergySavingenergymeanssavingwaterandviceversaEnhancingthe
efficiencyinthewaythatwaterisusedtranslatesintolowerpressuresoverfreshwatersources
butalsointoareduceddemandofenergyforwatertreatmentpumpingandtransportandtheninto
evenlesswaterrequiredtoproduceenergyMovingtowardslesswaterintensiveenergysources
andlessenergyintensivewatersourcessavingwaterandenergyinanyproductionandconsumption
processreallocatingwaterandenergytotheirmorevaluableusesareallalternativesthattake
advantageofthesesynergiesinopeningtheoptionofproducingmorewithless
Theriskofanon-coordinatedwaterandenergyresponse
bullDesalinatedwaterinvolvestheuseofatleast752TWhyearwhichisabout04ofglobal
electricityconsumption
bullModernbiofuelsrepresentonly08ofglobalfinalenergyconsumptionbuttheircontribution
toenergysupplyisexpectedtogrowrapidlyIfbioenergyfeedstockisproducedonirrigated
landsthenthepotentialimpactofbiofuelsonwaterresourcesisalsoofmajorconcern
bullUnconventionaloil(egoiltarsands)andgasproduction(eglsquofrackingrsquo)aregenerallymore
waterintensivethanconventionaloilandgasproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Partnershipsfornexussolutions
Nexussolutionscanandhavebeenimplementedbybuildingpartnershipstoallowactingtogether
andsupportingfindingandimplementingeffectiveactionsBuildingpartnershipsconsistsof
makingagreementstoreapthebenefitsofcooperationinthewaterandenergysectorNotonlyare
thechallengesinvolvedintheWaterandEnergyNexusbeyondthescopeofanyindividualpublic
authoritybusinessorstakeholderbutactionscanbecoordinatedinsuchawaythatthewholeis
greaterthanthesumofitsparts
Partnershipsmightinvolvedifferentactorsfromtheenergyandwatercommunityincluding
businessesdifferentlevelsofgovernmentcivilsocietyacademiaandallthosewithastakein
findingthewaytowardsasustainablesocialresponsetothewaterandenergychallengesWhile
recognizingthediversityofperceptionsinterestsandrolesallpartnershipsareinagreementto
cooperateinreachingamutualbenefit
MutualbenefitsareessentialtomakepartnershipsworkforsustainabledevelopmentForinstance
acrediblepolicytoincreasewatersecurityinthelongtermcanreducetheriskofinvestmentsin
theenergysectorandthesimultaneousincreaseinbothwaterandenergysecuritycanresultin
importantcompetitiveadvantagesfortheentirenationaleconomyAlongtermwaterandenergy
strategywithcleartargetsonthewaterandenergyportfolioaprospectiveroleforrenewableenergy
andnonshyconventionalwatersourcesmightspeedupthediffusionofthebestavailabletechnologies
andfosterinnovationTheseareonlysomeofthesynergiesthatpartnershipscancreateinorder
toensureasustainabledevelopment
ButpartnershipsrequireanenablingenvironmentInstitutionsandtechnologiesstillfavorthe
mutualignoranceofwaterandenergyissuesbothinbusinessandpolicymakingWaterrisksare
notadequatelyconsideredintheassessmentofenergyprojectsandplansandenergyissuesstill
playamarginalroleifanyinwaterprojectsappraisalandriverbasinmanagementplans
PartnershipsmighthavemultiplefunctionsTheymayservetointegratepoliciesandbroadenthe
scopeandenhancetheeffectivenessofbothwaterandenergyplanningbutalsotocoordinate
differentsectoralpoliciessuchaslandplanningruraldevelopmentnatureconservancy
manufacturingetcallwithinasustainableuseofwaterandenergy
06
07
Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust
andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance
Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations
andenablinginstitutionalframeworksamongotheradvantages
PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater
andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin
solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities
theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe
chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges
involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability
ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend
inthemediumandthelongterm
2TheUNandtheWaterndashEnergyNexus
21TheNexusintheInternationalAgenda
SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe
GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote
findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas
ofwaterandenergy
TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing
itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices
thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare
atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse
TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012
markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions
andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting
decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable
DevelopmentGoalsandthepostshy2015developmentdialogue
22WhatistheUNdoing
TopursuetheseobjectivestheUNhasorganisedthefollowingactions
Decade of Sustainable Energy for All (2014-2024)
ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024
astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy
issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda
Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy
andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould
reducethestressonwater
Sustainable Energy for All initiative
TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe
privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked
objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
us
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand
servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth
anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture
Maintainingadvancesrequiresdecouplinggrowthfromuseofresources
Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained
requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy
relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans
andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand
eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe
abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater
andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto
theenvironment
Asustainablefutureispossible
AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe
evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement
inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends
andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative
optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe
promiseintoareality
Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked
Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe
worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded
inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal
powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe
mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear
andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration
isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut
downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)
EnergyneedsWater
bull90ofpowergenerationworldwideiswatershyintensive
bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand
environmentalconsiderations
bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of
allindustrialwaterwithdrawals
bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand
isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin
severalEuropeancountries
bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15
ofglobalelectricityproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
04
05
Converselythewatersectorneedsenergyndashmainlyintheformofelectricityndashtoextracttreatand
transportwaterThedegradationofwatersourcesimpliesincreasingamountsofenergytopump
thesameamountofwaterfromdeeperaquifersorfarthersourcesAnyalternativetoreallocate
watertoitsmoreproductiveusesmightrequireenergyfortransportandtoadaptwaterquality
toitsnewusesandplacesIntr
oduc
tion
1
Waterneedsenergy
bullAbout8oftheglobalenergygenerationisusedforpumpingtreatingandtransportingwater
bullWaterbeingdenserequiresmuchenergytomoveitWatertransportanddistributionare
energyintensiveprocessesReallocatingwaterthroughusesandplacesmightincrease
thevalueperdropbutincreasetheuseofenergy
bullDrinkingwaterformunicipalsystemstypicallyrequiresextensivetreatmentandonceit
becomeswastewateritrequirestreatingagainbeforeitcanbedischargedtotheenvironment
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
WaterneedsenergyenergyneedswaterandhumandevelopmentneedsbothOneofthemainrisks
inthesearchforasustainabledevelopmentpathcomesfromignoringthebasicfactthatthereis
nootheroptiontohandlingthewaterandenergychallengesinanintegratedmannerTheserisks
arealreadypresentinsomeofthemostrelevantalternativestofacewaterandenergychallenges
WaterstressmightputadditionalpressureovertoenergyGoingfurtheranddeepertoobtainwater
aswaterbecomesscarcerequiresmoreenergyfortransportandpumpingThenonshyconventional
sourcesthatmaycompensateforthelackoffreshwatermayrequireenergyintensivetransformation
processessuchasdesalinationofseaandbrackishwaterorregenerationofwastewater
Growingdemandforlimitedwatersuppliesputsincreasingpressureonwaterintensiveenergy
producerstoseekalternativeapproachesespeciallyinareaswhereenergyiscompetingwithother
majorwaterusers(agriculturemanufacturingdrinkingwaterandsanitationservicesforcities)
andwherewaterusesmayberestrictedtomaintainhealthyecosystems
AccesstoenergymightworsenthewatercrisisUncertaintiesrelatedtothegrowthandevolution
ofglobalenergyproduction(egviagrowthinunconventionalsourcesofgasandoilorbiofuels)
andthepriceofenergycancreatesignificantriskstowaterresourcesandotherusersTheincreasing
momentumintheproductionofbiofuelshascreatedagrowingdemandonwaterresourcesEven
amodest5shareofbiofuelsinroadtransportdemand(aspredictedbytheInternationalEnergy
Agencyfor2030)couldincreasethewaterdemandforirrigationbyasmuchas20(WWDR2012)
Avoidresponsesthatfixoneproblemattheexpenseofworseningtheother
Themultipleinterdependenciesbetweenwaterandenergymeanthatanyresponseneedstotackle
thetwosectorsinanintegratedwayIgnoranceofthesebasicfactsmayleadtoresponsesthattry
toadoptalternativesthatfixoneproblemattheexpenseofworseningtheotherandthatmightfail
intheend(seeboxbelow)
Coordinatedresponsescantakeadvantageofthesynergiesbetweenwaterandenergy
Insteadofignoringtheinterdependenciescoordinatedresponsescantakeadvantageofthesynergies
betweenwaterandenergySavingenergymeanssavingwaterandviceversaEnhancingthe
efficiencyinthewaythatwaterisusedtranslatesintolowerpressuresoverfreshwatersources
butalsointoareduceddemandofenergyforwatertreatmentpumpingandtransportandtheninto
evenlesswaterrequiredtoproduceenergyMovingtowardslesswaterintensiveenergysources
andlessenergyintensivewatersourcessavingwaterandenergyinanyproductionandconsumption
processreallocatingwaterandenergytotheirmorevaluableusesareallalternativesthattake
advantageofthesesynergiesinopeningtheoptionofproducingmorewithless
Theriskofanon-coordinatedwaterandenergyresponse
bullDesalinatedwaterinvolvestheuseofatleast752TWhyearwhichisabout04ofglobal
electricityconsumption
bullModernbiofuelsrepresentonly08ofglobalfinalenergyconsumptionbuttheircontribution
toenergysupplyisexpectedtogrowrapidlyIfbioenergyfeedstockisproducedonirrigated
landsthenthepotentialimpactofbiofuelsonwaterresourcesisalsoofmajorconcern
bullUnconventionaloil(egoiltarsands)andgasproduction(eglsquofrackingrsquo)aregenerallymore
waterintensivethanconventionaloilandgasproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Partnershipsfornexussolutions
Nexussolutionscanandhavebeenimplementedbybuildingpartnershipstoallowactingtogether
andsupportingfindingandimplementingeffectiveactionsBuildingpartnershipsconsistsof
makingagreementstoreapthebenefitsofcooperationinthewaterandenergysectorNotonlyare
thechallengesinvolvedintheWaterandEnergyNexusbeyondthescopeofanyindividualpublic
authoritybusinessorstakeholderbutactionscanbecoordinatedinsuchawaythatthewholeis
greaterthanthesumofitsparts
Partnershipsmightinvolvedifferentactorsfromtheenergyandwatercommunityincluding
businessesdifferentlevelsofgovernmentcivilsocietyacademiaandallthosewithastakein
findingthewaytowardsasustainablesocialresponsetothewaterandenergychallengesWhile
recognizingthediversityofperceptionsinterestsandrolesallpartnershipsareinagreementto
cooperateinreachingamutualbenefit
MutualbenefitsareessentialtomakepartnershipsworkforsustainabledevelopmentForinstance
acrediblepolicytoincreasewatersecurityinthelongtermcanreducetheriskofinvestmentsin
theenergysectorandthesimultaneousincreaseinbothwaterandenergysecuritycanresultin
importantcompetitiveadvantagesfortheentirenationaleconomyAlongtermwaterandenergy
strategywithcleartargetsonthewaterandenergyportfolioaprospectiveroleforrenewableenergy
andnonshyconventionalwatersourcesmightspeedupthediffusionofthebestavailabletechnologies
andfosterinnovationTheseareonlysomeofthesynergiesthatpartnershipscancreateinorder
toensureasustainabledevelopment
ButpartnershipsrequireanenablingenvironmentInstitutionsandtechnologiesstillfavorthe
mutualignoranceofwaterandenergyissuesbothinbusinessandpolicymakingWaterrisksare
notadequatelyconsideredintheassessmentofenergyprojectsandplansandenergyissuesstill
playamarginalroleifanyinwaterprojectsappraisalandriverbasinmanagementplans
PartnershipsmighthavemultiplefunctionsTheymayservetointegratepoliciesandbroadenthe
scopeandenhancetheeffectivenessofbothwaterandenergyplanningbutalsotocoordinate
differentsectoralpoliciessuchaslandplanningruraldevelopmentnatureconservancy
manufacturingetcallwithinasustainableuseofwaterandenergy
06
07
Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust
andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance
Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations
andenablinginstitutionalframeworksamongotheradvantages
PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater
andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin
solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities
theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe
chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges
involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability
ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend
inthemediumandthelongterm
2TheUNandtheWaterndashEnergyNexus
21TheNexusintheInternationalAgenda
SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe
GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote
findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas
ofwaterandenergy
TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing
itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices
thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare
atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse
TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012
markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions
andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting
decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable
DevelopmentGoalsandthepostshy2015developmentdialogue
22WhatistheUNdoing
TopursuetheseobjectivestheUNhasorganisedthefollowingactions
Decade of Sustainable Energy for All (2014-2024)
ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024
astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy
issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda
Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy
andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould
reducethestressonwater
Sustainable Energy for All initiative
TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe
privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked
objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
us
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
05
Converselythewatersectorneedsenergyndashmainlyintheformofelectricityndashtoextracttreatand
transportwaterThedegradationofwatersourcesimpliesincreasingamountsofenergytopump
thesameamountofwaterfromdeeperaquifersorfarthersourcesAnyalternativetoreallocate
watertoitsmoreproductiveusesmightrequireenergyfortransportandtoadaptwaterquality
toitsnewusesandplacesIntr
oduc
tion
1
Waterneedsenergy
bullAbout8oftheglobalenergygenerationisusedforpumpingtreatingandtransportingwater
bullWaterbeingdenserequiresmuchenergytomoveitWatertransportanddistributionare
energyintensiveprocessesReallocatingwaterthroughusesandplacesmightincrease
thevalueperdropbutincreasetheuseofenergy
bullDrinkingwaterformunicipalsystemstypicallyrequiresextensivetreatmentandonceit
becomeswastewateritrequirestreatingagainbeforeitcanbedischargedtotheenvironment
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
WaterneedsenergyenergyneedswaterandhumandevelopmentneedsbothOneofthemainrisks
inthesearchforasustainabledevelopmentpathcomesfromignoringthebasicfactthatthereis
nootheroptiontohandlingthewaterandenergychallengesinanintegratedmannerTheserisks
arealreadypresentinsomeofthemostrelevantalternativestofacewaterandenergychallenges
WaterstressmightputadditionalpressureovertoenergyGoingfurtheranddeepertoobtainwater
aswaterbecomesscarcerequiresmoreenergyfortransportandpumpingThenonshyconventional
sourcesthatmaycompensateforthelackoffreshwatermayrequireenergyintensivetransformation
processessuchasdesalinationofseaandbrackishwaterorregenerationofwastewater
Growingdemandforlimitedwatersuppliesputsincreasingpressureonwaterintensiveenergy
producerstoseekalternativeapproachesespeciallyinareaswhereenergyiscompetingwithother
majorwaterusers(agriculturemanufacturingdrinkingwaterandsanitationservicesforcities)
andwherewaterusesmayberestrictedtomaintainhealthyecosystems
AccesstoenergymightworsenthewatercrisisUncertaintiesrelatedtothegrowthandevolution
ofglobalenergyproduction(egviagrowthinunconventionalsourcesofgasandoilorbiofuels)
andthepriceofenergycancreatesignificantriskstowaterresourcesandotherusersTheincreasing
momentumintheproductionofbiofuelshascreatedagrowingdemandonwaterresourcesEven
amodest5shareofbiofuelsinroadtransportdemand(aspredictedbytheInternationalEnergy
Agencyfor2030)couldincreasethewaterdemandforirrigationbyasmuchas20(WWDR2012)
Avoidresponsesthatfixoneproblemattheexpenseofworseningtheother
Themultipleinterdependenciesbetweenwaterandenergymeanthatanyresponseneedstotackle
thetwosectorsinanintegratedwayIgnoranceofthesebasicfactsmayleadtoresponsesthattry
toadoptalternativesthatfixoneproblemattheexpenseofworseningtheotherandthatmightfail
intheend(seeboxbelow)
Coordinatedresponsescantakeadvantageofthesynergiesbetweenwaterandenergy
Insteadofignoringtheinterdependenciescoordinatedresponsescantakeadvantageofthesynergies
betweenwaterandenergySavingenergymeanssavingwaterandviceversaEnhancingthe
efficiencyinthewaythatwaterisusedtranslatesintolowerpressuresoverfreshwatersources
butalsointoareduceddemandofenergyforwatertreatmentpumpingandtransportandtheninto
evenlesswaterrequiredtoproduceenergyMovingtowardslesswaterintensiveenergysources
andlessenergyintensivewatersourcessavingwaterandenergyinanyproductionandconsumption
processreallocatingwaterandenergytotheirmorevaluableusesareallalternativesthattake
advantageofthesesynergiesinopeningtheoptionofproducingmorewithless
Theriskofanon-coordinatedwaterandenergyresponse
bullDesalinatedwaterinvolvestheuseofatleast752TWhyearwhichisabout04ofglobal
electricityconsumption
bullModernbiofuelsrepresentonly08ofglobalfinalenergyconsumptionbuttheircontribution
toenergysupplyisexpectedtogrowrapidlyIfbioenergyfeedstockisproducedonirrigated
landsthenthepotentialimpactofbiofuelsonwaterresourcesisalsoofmajorconcern
bullUnconventionaloil(egoiltarsands)andgasproduction(eglsquofrackingrsquo)aregenerallymore
waterintensivethanconventionaloilandgasproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Partnershipsfornexussolutions
Nexussolutionscanandhavebeenimplementedbybuildingpartnershipstoallowactingtogether
andsupportingfindingandimplementingeffectiveactionsBuildingpartnershipsconsistsof
makingagreementstoreapthebenefitsofcooperationinthewaterandenergysectorNotonlyare
thechallengesinvolvedintheWaterandEnergyNexusbeyondthescopeofanyindividualpublic
authoritybusinessorstakeholderbutactionscanbecoordinatedinsuchawaythatthewholeis
greaterthanthesumofitsparts
Partnershipsmightinvolvedifferentactorsfromtheenergyandwatercommunityincluding
businessesdifferentlevelsofgovernmentcivilsocietyacademiaandallthosewithastakein
findingthewaytowardsasustainablesocialresponsetothewaterandenergychallengesWhile
recognizingthediversityofperceptionsinterestsandrolesallpartnershipsareinagreementto
cooperateinreachingamutualbenefit
MutualbenefitsareessentialtomakepartnershipsworkforsustainabledevelopmentForinstance
acrediblepolicytoincreasewatersecurityinthelongtermcanreducetheriskofinvestmentsin
theenergysectorandthesimultaneousincreaseinbothwaterandenergysecuritycanresultin
importantcompetitiveadvantagesfortheentirenationaleconomyAlongtermwaterandenergy
strategywithcleartargetsonthewaterandenergyportfolioaprospectiveroleforrenewableenergy
andnonshyconventionalwatersourcesmightspeedupthediffusionofthebestavailabletechnologies
andfosterinnovationTheseareonlysomeofthesynergiesthatpartnershipscancreateinorder
toensureasustainabledevelopment
ButpartnershipsrequireanenablingenvironmentInstitutionsandtechnologiesstillfavorthe
mutualignoranceofwaterandenergyissuesbothinbusinessandpolicymakingWaterrisksare
notadequatelyconsideredintheassessmentofenergyprojectsandplansandenergyissuesstill
playamarginalroleifanyinwaterprojectsappraisalandriverbasinmanagementplans
PartnershipsmighthavemultiplefunctionsTheymayservetointegratepoliciesandbroadenthe
scopeandenhancetheeffectivenessofbothwaterandenergyplanningbutalsotocoordinate
differentsectoralpoliciessuchaslandplanningruraldevelopmentnatureconservancy
manufacturingetcallwithinasustainableuseofwaterandenergy
06
07
Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust
andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance
Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations
andenablinginstitutionalframeworksamongotheradvantages
PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater
andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin
solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities
theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe
chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges
involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability
ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend
inthemediumandthelongterm
2TheUNandtheWaterndashEnergyNexus
21TheNexusintheInternationalAgenda
SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe
GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote
findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas
ofwaterandenergy
TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing
itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices
thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare
atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse
TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012
markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions
andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting
decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable
DevelopmentGoalsandthepostshy2015developmentdialogue
22WhatistheUNdoing
TopursuetheseobjectivestheUNhasorganisedthefollowingactions
Decade of Sustainable Energy for All (2014-2024)
ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024
astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy
issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda
Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy
andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould
reducethestressonwater
Sustainable Energy for All initiative
TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe
privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked
objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
us
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
butalsointoareduceddemandofenergyforwatertreatmentpumpingandtransportandtheninto
evenlesswaterrequiredtoproduceenergyMovingtowardslesswaterintensiveenergysources
andlessenergyintensivewatersourcessavingwaterandenergyinanyproductionandconsumption
processreallocatingwaterandenergytotheirmorevaluableusesareallalternativesthattake
advantageofthesesynergiesinopeningtheoptionofproducingmorewithless
Theriskofanon-coordinatedwaterandenergyresponse
bullDesalinatedwaterinvolvestheuseofatleast752TWhyearwhichisabout04ofglobal
electricityconsumption
bullModernbiofuelsrepresentonly08ofglobalfinalenergyconsumptionbuttheircontribution
toenergysupplyisexpectedtogrowrapidlyIfbioenergyfeedstockisproducedonirrigated
landsthenthepotentialimpactofbiofuelsonwaterresourcesisalsoofmajorconcern
bullUnconventionaloil(egoiltarsands)andgasproduction(eglsquofrackingrsquo)aregenerallymore
waterintensivethanconventionaloilandgasproduction
Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen
Partnershipsfornexussolutions
Nexussolutionscanandhavebeenimplementedbybuildingpartnershipstoallowactingtogether
andsupportingfindingandimplementingeffectiveactionsBuildingpartnershipsconsistsof
makingagreementstoreapthebenefitsofcooperationinthewaterandenergysectorNotonlyare
thechallengesinvolvedintheWaterandEnergyNexusbeyondthescopeofanyindividualpublic
authoritybusinessorstakeholderbutactionscanbecoordinatedinsuchawaythatthewholeis
greaterthanthesumofitsparts
Partnershipsmightinvolvedifferentactorsfromtheenergyandwatercommunityincluding
businessesdifferentlevelsofgovernmentcivilsocietyacademiaandallthosewithastakein
findingthewaytowardsasustainablesocialresponsetothewaterandenergychallengesWhile
recognizingthediversityofperceptionsinterestsandrolesallpartnershipsareinagreementto
cooperateinreachingamutualbenefit
MutualbenefitsareessentialtomakepartnershipsworkforsustainabledevelopmentForinstance
acrediblepolicytoincreasewatersecurityinthelongtermcanreducetheriskofinvestmentsin
theenergysectorandthesimultaneousincreaseinbothwaterandenergysecuritycanresultin
importantcompetitiveadvantagesfortheentirenationaleconomyAlongtermwaterandenergy
strategywithcleartargetsonthewaterandenergyportfolioaprospectiveroleforrenewableenergy
andnonshyconventionalwatersourcesmightspeedupthediffusionofthebestavailabletechnologies
andfosterinnovationTheseareonlysomeofthesynergiesthatpartnershipscancreateinorder
toensureasustainabledevelopment
ButpartnershipsrequireanenablingenvironmentInstitutionsandtechnologiesstillfavorthe
mutualignoranceofwaterandenergyissuesbothinbusinessandpolicymakingWaterrisksare
notadequatelyconsideredintheassessmentofenergyprojectsandplansandenergyissuesstill
playamarginalroleifanyinwaterprojectsappraisalandriverbasinmanagementplans
PartnershipsmighthavemultiplefunctionsTheymayservetointegratepoliciesandbroadenthe
scopeandenhancetheeffectivenessofbothwaterandenergyplanningbutalsotocoordinate
differentsectoralpoliciessuchaslandplanningruraldevelopmentnatureconservancy
manufacturingetcallwithinasustainableuseofwaterandenergy
06
07
Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust
andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance
Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations
andenablinginstitutionalframeworksamongotheradvantages
PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater
andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin
solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities
theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe
chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges
involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability
ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend
inthemediumandthelongterm
2TheUNandtheWaterndashEnergyNexus
21TheNexusintheInternationalAgenda
SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe
GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote
findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas
ofwaterandenergy
TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing
itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices
thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare
atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse
TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012
markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions
andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting
decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable
DevelopmentGoalsandthepostshy2015developmentdialogue
22WhatistheUNdoing
TopursuetheseobjectivestheUNhasorganisedthefollowingactions
Decade of Sustainable Energy for All (2014-2024)
ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024
astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy
issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda
Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy
andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould
reducethestressonwater
Sustainable Energy for All initiative
TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe
privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked
objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
us
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
07
Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust
andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance
Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations
andenablinginstitutionalframeworksamongotheradvantages
PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater
andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin
solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities
theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe
chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges
involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability
ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend
inthemediumandthelongterm
2TheUNandtheWaterndashEnergyNexus
21TheNexusintheInternationalAgenda
SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe
GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote
findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas
ofwaterandenergy
TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing
itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices
thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare
atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse
TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012
markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions
andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting
decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable
DevelopmentGoalsandthepostshy2015developmentdialogue
22WhatistheUNdoing
TopursuetheseobjectivestheUNhasorganisedthefollowingactions
Decade of Sustainable Energy for All (2014-2024)
ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024
astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy
issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda
Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy
andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould
reducethestressonwater
Sustainable Energy for All initiative
TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe
privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked
objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
us
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe
globalenergymix
International Decade for Action lsquoWater for Lifersquo 2005-2015
TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil
internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering
cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg
PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe
achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies
thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity
andqualityandincludemeasurestoimprovesanitation
World Water Day
WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe
importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources
EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater
andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment
Organization(UNIDO)areleadingofficialcelebrations
UN-Energy
Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency
collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe
UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree
thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency
United Nations Industrial Development Organization (UNIDO)
UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial
developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand
energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational
industrialcooperationtowardssustainabledevelopment
United Nations Environment Programme (UNEP)
UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing
environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand
bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof
publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother
internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway
thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation
ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental
Organizations(NGOs)
World Bankrsquos Thirsty Energy initiative
Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively
theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp
governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral
planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies
synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe
importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork
inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource
managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore
broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending
08
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
09
2T
heU
Na
ndt
heW
ater
Ene
rgy
Nex
usPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry
Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson
buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe
energyshywaterchallengeistoolargeforanyorganizationtotacklealone
23Whathavewelearnt
Thesearethemainresultsofthisprocesssofar
bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater
andenergydemand
bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing
oftheseamongstakeholderswithcompetingpriorities
bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter
recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction
bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom
reversingunsustainabletrends
bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders
involvedinimprovingpolicycoherenceacrosssectors
bullBestpracticeinnovationsandsolutionsarebeingdisseminated
242014Roadmaponthewater-energynexus
TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited
NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has
addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD
aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto
solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference
addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency
andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater
WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014
onWaterandEnergylaunched
TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia
andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully
filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy
infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota
newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement
planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave
alloweddeliveryofanexponentiallysuccessfulservice
TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat
aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor
integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy
nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess
ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy
systems
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
The2014Roadmap
bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS
TheWatershyEnergyNexus(ThirstyEnergy)
bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining
EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia
bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo
ChapelHillUSA
bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay
bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement
ldquoToolsForActionrdquo
bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy
FoodNexusrdquo
bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014
bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater
bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium
bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo
10
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
11
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges 3WaterandEnergyScenariosand
Challenges
31WaterandEnergytodayandprojections
Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact
basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy
demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective
scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup
prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives
andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater
andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto
endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy
responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa
sustainablewaterandenergyfuture
ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment
ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational
organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible
representationofourcommonfuture
Water and energy access today
WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable
provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources
interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor
thetransitiontowardshigherlevelsofeconomicandsocialprogress
Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand
communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial
andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments
ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities
foreducationandemploymentresultinginoverallnationaleconomicdevelopment
Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence
ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso
criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels
Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof
bothandtherebyconservingenergy
Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable
developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea
numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater
sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe
alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread
povertyreduction
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
TheMilleniumDevelopmentGoalsOutstandingSuccesshellip
bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking
watersources
bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990
to89percentin2010
bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin
2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved
watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing
SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml
hellipandneworremainingchallenges
bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater
bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica
bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld
populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)
bull28billionliveinareasofhighwaterstress(WWAP2012)
Futurescenarioswaterandenergydemands
UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits
currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill
stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe
combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater
demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)
Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby
2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85
increaseinthewaterconsumption(EA2012)
Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater
resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable
theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight
onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater
scarcity
Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands
Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight
alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity
degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis
littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion
of people living in water stressed areas is expected to increase from 25 to 23 (WRI)
Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters
(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained
demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are
forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25
respectively(2030WRG)
12
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
13
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges
Developingcountriesfacebiggerchallenges
bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050
bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore
thantripleby2050
bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe
next40yearsandtheamountofwaterneededwilltripleWEO(2010)
Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy
perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld
thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned
withwaterandenergyefficiency
32WaterandEnergyNewandbiggerchallengesahead
Population growth economic development
FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore
complex
Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin
manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake
ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin
slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand
accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations
inremoteareas
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
TheIncreasedFinancialBurdenofWaterandEnergyAccess
bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed
tobeinvestedtoachieveuniversalenergyaccessby2030
bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion
peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015
httpwwwworldenergyoutlookorgpublicationsweoshy2013
WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty
inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire
increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe
combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated
increaseof130onthedemandofwaterforirrigation(OECD)
Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor
differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable
Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother
growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe
demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe
irrigationsector
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges
ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand
thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange
TheEconomicLossesfromscarceandunreliablewaterandenergysupplies
bullLackofsanitationaccesscancostcountriesupto6ofGDP
bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir
potentialincome
bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro
productionover1998shy2000
bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg
Chinalosing5GDPtopollution)
SourceTheWorldBank
Amorewaterconstrainedworld
Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality
inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture
resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently
workbelowtheirdesignedcapacity
Watersecurityforenergysecurityindifferentregions
bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity
issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly
20ofthecountryrenewablefreshwatersupplyis
bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface
watershortages
bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh
waterrisk
bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between
2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater
Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater
scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural
manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame
criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday
Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld
(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity
partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued
inthepast
14
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
15
3W
ater
and
Ene
rgy
Scen
ario
san
dC
halle
nges Resilience to extreme events and climate change
Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona
normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe
overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater
tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover
temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector
andtheentireeconomy
TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe
dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight
increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby
evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity
demandforairconditioning
Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation
andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces
thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese
problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe
entireeconomy
TheEnergyIndustryalreadyfaceswaterrelatedrisks
bullTheEnergyIndustryalreadyfaceswaterrelatedrisks
bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue
tolowwaterflowsorhighwatertemperatures
bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput
equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity
bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater
forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand
affectingover600millionpeople
bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy
efficiencymeasuresandelectricityrationing
bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin
manycountriessuchasSriLankaChinaandBrazil
SourceOECD(2012)
WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare
oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing
variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including
warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy
suppliestowaterrelatedrisks
OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe
designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable
toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan
bedesignedtocontributetoclimatechangeadaptation
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals
treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry
(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce
themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower
theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe
degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance
adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample
makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby
improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy
alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand
energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings
andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor
limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional
waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand
havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater
desalinationofseaorbrackishsources)
16
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
17
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
4TheWaterandEnergyNexusOpportunitiesampChoices
TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows
thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability
ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners
involvedinfindinganintegratedresponsetowaterandenergychallenges
Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired
asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities
41FeasiblebutComplexChoices
Existing technology
AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand
energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange
oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe
requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities
doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater
todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives
ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent
productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout
additionalenvironmentaldamage
TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency
(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe
decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2
particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower
generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion
ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina
reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)
Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora
sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily
meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions
inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof
theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy
mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease
inthewaterwithdrawnof20(OECDIEA2012)
No silver bullet nor one size fits all solutions
Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem
andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto
2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto
electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam
pressuresandtoattainhigherenergyconversionrates
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater
andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater
usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy
firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin
waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies
withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis
explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional
electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals
fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)
Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions
Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector
manyothertradeshyoffsneedtobeconsidered
bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother
mightrequirebalancingtradeshyoffsbetweenthetworesources
bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply
additionalfinancialcosts
bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature
andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater
andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment
Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed
tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable
waterandenergyfuture
42TheWater-EnergyNexusOpportunities
Technology mix
Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily
ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect
functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources
andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe
finaluseoftheenergyproduced
Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere
crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement
ishigherTheseareasinclude
bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater
usedintheenergysectorisrequired
bull thewaterefficiencyoftheenergytransformationprocess
bull theenergyefficiencyoftheproductionofwaterservices
bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy
Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith
lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions
availableforasustainablewaterandenergyfuture
18
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
19
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
The opportunities
1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems
TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch
andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan
bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand
relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas
theyaredepletedorbecomescarcerascomparedwithexistingdemands
Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon
theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome
hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland
conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)
2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses
forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical
optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse
littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated
solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind
powerusesanegligibleamountofwater
3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy
futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis
thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan
otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper
unitofenergythannaturalgasorcoalbasedsystems(IEA2012)
4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources
theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto
highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish
waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof
waterforcoolingpurposes
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste
watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils
orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith
awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks
canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto
retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment
Closer inspection of the Power transformation processes
Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis
feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive
alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell
asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector
Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe
energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95
oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity
producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater
usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles
ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies
Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother
importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling
Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto
itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing
coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove
mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic
metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem
Managing the transition
Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower
generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared
tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop
freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition
towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy
demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand
energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries
where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto
makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies
orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe
mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy
sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand
Africaarestilluntappedinthetransition
Untapped potential
Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies
Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill
savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand
energysavedalongtheentireproductioncycle
Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries
Hydropower Underdeveloped Potential
Africa 92
Asia 80
AustraliaOceania 80
LatinAmerica 74
SourceOECD
20
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
21
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
In summary
Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture
energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis
importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater
andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices
Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented
opportunities
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall
localscalesparticularlytothepoorestsegmentsofthesociety
bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance
generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand
inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof
thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto
replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry
bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower
plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat
thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction
reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts
bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy
productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants
inwaterstressedareas
bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy
productionhasseveralbenefits
bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding
coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)
andheat(byenergyintensiveheatingsystems)
bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality
ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide
useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
otherusesthatdependonfreshwatersupply
43Trade-offsandcomplexsolutions
Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy
nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs
thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe
avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial
attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter
Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing
thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies
andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe
pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother
More complex solutions
SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy
andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis
theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel
wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe
existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting
waterandenergyresources
Not easily adaptableflexible
ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand
waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily
adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable
andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant
flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources
ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan
importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation
oftheadaptationtotheuncertainsupplyofnonshyrenewablesources
Additional financial costs
Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction
levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey
donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective
Requirements for additional infrastructure
Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers
andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater
efficient irrigation systems require additional energy operation and maintenance costs
Reduced efficiency
TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient
coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe
useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces
yieldsperdrop
WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction
isnottheequivalentoflesswaterdepletion
SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)
22
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
23
4T
heW
ater
and
Ene
rgy
Nex
usO
ppor
tuni
tiesamp
Cho
ices
Trade-offs along the product cycle
Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages
alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans
toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe
overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates
wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained
inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel
Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand
broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions
Trade-offs according to different objectives
Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany
areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels
mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood
productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)
emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof
developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman
timescales
Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams
isnecessaryforsustainabledevelopment
bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant
IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh
bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions
aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion
ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe
waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling
towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume
morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto
coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample
ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)
bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe
ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction
ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite
directionsduringtheOutlookperiod(OECD)
bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency
ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems
shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration
ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese
complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent
factorssuchaswaterabundanceandscarcityandlocation
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
5MakingtheCaseforPartnerships
ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo
importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe
opportunitiesavailabletomeetthesechallenges(Chapter4)
ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin
thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable
waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture
mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy
conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult
choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall
thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast
ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion
WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic
hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative
institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage
oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges
51WhyPartnerships
Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple
interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe
challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources
availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot
happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy
firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers
Beyond competition and individual decisions
Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand
individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges
involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions
ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity
Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
Thesechallengesareoutofthescopeofanypublicorprivateorganization
Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong
decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare
increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability
ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew
projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment
decisionsdecisionscontinuetobetakenwithlimitedinformation
Considering scarcities today and in the future
Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming
thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy
priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits
ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture
availabilityofbothresourcesaswellastheveryshortterm
24
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
25
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore
therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto
anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban
developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat
leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment
inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse
Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration
processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof
theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses
bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies
almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive
butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin
thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand
recyclingofwater
Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora
robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed
smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional
technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships
mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater
efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready
inoperation
Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding
potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand
forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower
generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto
relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption
thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen
shiftsfromtechnologytogovernance
Investments may halt
Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce
theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater
suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects
andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa
suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm
Businesses need governments
Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote
usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof
sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement
thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange
oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise
thecontinuousprovisionofthetwovaluableresources
Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance
aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies
involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket
environment
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions
onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof
fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater
resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof
waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater
stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology
optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis
willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly
theincentivesinplacefavourthewaterefficientalternatives
Governments need businesses
Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand
otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina
betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma
widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot
abletocopewiththesechallengesontheirown
Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe
importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices
mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote
innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses
aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize
normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut
thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals
thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese
reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive
involvementoffirmsandhouseholds
Reducing enforcement and implementation costs
LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces
enforcementandother implementationcostsandmakestheempowermentofbusinessand
householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand
todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency
accessibilityandsustainability
Foster interdisciplinary knowledge development and exchange
Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary
collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge
exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)
26
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
27
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter
integratedwaterandenergypolicyframework
bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing
themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses
bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction
processesduetotheirlargewaterrequirements
bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge
compliancecostsandwithdrawallimits
bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations
bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately
Partnerships can help
PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives
theymightallowfor
bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy
policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea
bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe
needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices
providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability
bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities
bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable
52Challengesforpartnerships
Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse
buildingenablingandeffectivepartnershipsisachallengeonitsown
Overcoming Institutional lock-ins and path dependence
Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions
lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan
betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers
thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision
frameworks
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
TheWater-EnergyNexusthespecialroleofbusiness
Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly
mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements
ofthewaterindustry
BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy
limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe
productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan
importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand
institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent
experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos
openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup
inthepoliticalsystem
TheWorldBankhttpgoogl5Rp1nx
Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated
andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy
decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead
ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy
scarcity
Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater
availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand
energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith
climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies
TheEnergySustainabilityChallenge(ESC)ABPInitiative
TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe
complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis
multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch
aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow
technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN
Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml
Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced
andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby
usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower
generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment
projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent
Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak
existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy
challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen
traditionallytaken
28
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
29
5M
akin
gth
eC
ase
for
Part
ners
hips
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Overcoming technological lock-ins
Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions
ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast
yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa
Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof
usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake
advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya
growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears
tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy
sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)
Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply
toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore
balancedmixofsolutions
Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto
developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen
depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable
economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth
resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom
thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional
Reshaping the role of financial and economic incentives
Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset
upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector
andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater
andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater
planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore
relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment
Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability
ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment
prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand
energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers
havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment
inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen
oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding
tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas
realigningthoseindividualdecisionstothecollectivetargetsofsustainability
Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany
singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake
themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired
forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire
convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
The setting up of long term water and energy policy objectives
Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas
thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof
waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely
inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable
futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible
asthewaterandenergysourcesthemselves
Dealing with asymmetries building fair and reciprocal alliances
Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin
ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand
enablingmutuallybeneficialagreements
TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith
theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous
withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal
orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration
Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan
waterinmostcountries
Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences
betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such
aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded
toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)
asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability
andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis
notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences
mightshapethemutualinterest
Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy
scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater
efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew
technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector
53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor
partnershipsandimprovecooperation
Making visible the risks of uncoordinated action
Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated
waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother
Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand
energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith
severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften
energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation
strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements
areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater
consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower
efficiencyalsoresultinginhigherGHGemissions
30
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
31
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
CapacityDevelopmentinSustainableWaterManagementCAP-Net
bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable
watermanagementItismadeupofapartnershipofautonomousinternationalregional
andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector
bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater
resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand
theachievementoftheMDGs
Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet
Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy
tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut
alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners
Encouraging firms and stakeholders to take a long term view and recognize vested interests
PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore
focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives
ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand
adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition
andenforcementofpropertyrightsamongothers
Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto
contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto
recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina
betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother
stakeholderswiththecommonobjectivesofsustainabledevelopment
GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote
socialdialogueshareinformationandtransparency
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally
caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The
studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers
WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear
requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped
focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater
usebyallsectorshttpgooglJGVw2H
TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica
servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease
concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis
Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover
theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof
potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC
Moreinformationhttpwwwgreenpeaceorg
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside
individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot
pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare
pursuingacommoninterestontheother
TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe
EUEIP-Water
UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance
(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational
stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide
commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton
waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge
disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale
httpgooglRGGr7U
Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups
Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances
aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged
totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources
assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness
creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake
individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies
Promoting better governance transparency trust and accountability
Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency
asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial
agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat
resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome
orientedandperformance indicatorspromotedbothby localand international institutions
Improving regulatory bodies
Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis
reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo
behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother
contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping
theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems
throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties
onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat
theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand
environmentalimpacts
32
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
33
Mak
ing
the
Cas
efo
rPa
rtne
rshi
ps
5
Regulationscantriggerimportantadvancesinwaterandenergyefficiency
bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand
energyefficiencyasinSingapore
bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions
ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael
bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse
ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable
drinkingwaterintheMiddleEast
bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone
withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater
ecosystemsinBrazil
Establishing incentives
Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships
tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor
continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto
makewaterandenergyaffordable
Whatincentives
FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30
overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted
toonly$88billionin2011andincreasedbyanother24in2012
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned
topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies
andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource
Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable
waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance
sustainablewaterandenergyuse(Seeboxbelow)
Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor
examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater
pumping
Improving institutional coordination
OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination
betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto
managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions
andintensivecompetitionbetweenthedifferentministriesandpublicagencies
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Institutionalcoordination
bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater
ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater
Agencyforconcessionstoexploithydropowerpotential
bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand
returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency
isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater
useasawayofmitigatingclimatechange
bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead
oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand
CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry
bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology
SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater
resourceplanningbyaddingtheenergydimensiontothepolicies
34
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
35
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice 6BuildingPartnershipsndashpartnerships
inpractice
ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber
andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude
partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures
suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand
energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy
researchandinnovation
ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand
WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented
below
61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies
Changes in the business strategy to be less exposed to water risks
Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas
fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo
decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe
traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith
otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement
inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless
dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks
Two way dialogue to build a stable regulatory framework
Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater
securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory
frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling
environmentforinnovation
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
Fostering interdisciplinary collaboration
Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors
canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions
Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin
thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy
andwaterresourcescomprehensively
TheWorldBankrsquosThirstyEnergyInitiative
UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy
whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource
managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak
disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness
oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors
httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Main results
Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual
dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin
thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications
ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore
importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto
shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry
Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe
decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith
increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists
oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity
generationsector
EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides
internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow
carboneconomyandawaterefficientenergysystem
EnhancingtheroleofWaterintheEnergyPortfolio
HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated
withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas
solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower
offers ameanstostoreenergythatcanbedelivered
Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive
characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall
morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal
plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a
similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth
caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto
valuesomeenergythatwouldhaveotherwisebeenlost
MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl
Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat
enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand
verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong
termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies
36
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
37
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin
UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)
andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus
assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding
dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom
AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource
managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein
particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter
understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification
ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent
resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin
transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe
assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin
revisedform
httpgoogl5Lo4cb
TheNexusDialogueonWaterInfrastructuresSolutions
FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading
thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment
Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy
sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof
thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding
partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise
thedialogue
wwwwaternexussolutionsorg
62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability
Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured
goodsthatcharacterizeamoderneconomy
ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues
tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand
povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic
developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial
developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy
whichareessentialformanufacturing
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA
bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop
coolingtechnologies
bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption
bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased
onnonshyconventionalwatersources(Brackishwasteandseawater)
bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories
involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)
tomultiple(sustainability)
bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon
bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave
madewateradriverofinnovationbypushingfrackingtoalternativeresources
SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov
Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe
kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism
toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth
Savethesource-effectivelypartneringwiththeprivatesector
In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa
partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea
projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy
intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution
andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater
systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector
investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)
aremobilized
Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy
cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers
fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies
tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration
ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment
ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource
efficientcleanerproductionprinciples
Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational
industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal
replicationandupshyscalinghttpgooglQeWMkp
38
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
39
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional
frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis
promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated
andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth
intheindustrysector
TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment
GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute
moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy
strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector
GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand
practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting
industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental
goodsandservices(lsquocreatingnewgreenindustriesrsquo)
Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities
forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand
transitioncountries
AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma
processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand
reducingemissions
Sourcehttpwwwgreenindustryplatformorg
AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional
constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment
intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources
andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan
deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental
concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe
Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
PartnershipstoTransferEnvironmentallySoundTechnology(TEST)
TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof
theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour
companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince
Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating
companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges
havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing
theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare
estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent
reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per
centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas
becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand
efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully
appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction
growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite
tomakeeconomicprogresssustainable
TheHydropowerSustainabilityAssessmentForumAglobalpartnership
In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational
HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol
(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand
havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower
projectsandoperatingfacilities
AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA
inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities
takingstepstowardsmakingtheproductionofelectricitysustainable
httpwwwhydrosustainabilityorg
TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress
therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply
addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors
thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills
andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes
promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland
mediumshysizedenterprises
63LocalauthoritiesandWaterandEnergyPartnerships
Cities and sub-national partnerships
Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors
involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple
individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate
decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween
zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing
autonomyanddecreasingcommunicationwitheachother
ZaragozaBuildingaSmartWaterandEnergyCity
ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic
socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity
buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto
ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf
theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic
commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency
ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork
onhumanrighttowaterinCentralAmericahttpwwwecodesorg
40
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
41
Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings
tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin
ordertoachievesocialandeconomicobjectivesmoreeffectively
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
AddressingtheWater-energynexusinruralsettings
DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe
empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor
a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg
Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue
toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment
plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)
promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel
waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar
developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein
Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm
Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex
localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated
witheachother
Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions
areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant
linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe
moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability
tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities
Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance
Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial
awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly
recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore
importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant
thanwindfallprofits
Public Private Partnerships
Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits
ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial
actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors
willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare
baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand
barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof
themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto
reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing
objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness
opportunitiesinthelongterm
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia
5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough
PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity
andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall
hydroelectricplantsandruraldevelopmentactions
httpgooglXLM24t
AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen
builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand
policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside
itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities
haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable
waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial
objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions
withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup
bycooperation
TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy
VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater
orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise
portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials
forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit
recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal
communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks
attheoptimalcostandcontinuityofservice
Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets
ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic
(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission
andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither
waterorenergyexpensesandfrom10to30ofemissionsandcostssavings
wwwveoliacom
Partnerships among water and energy utilities
Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm
levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater
andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy
efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate
thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities
42
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
43
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice
SmartBusinessforWaterandEnergyAccessandEfficiency
ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca
(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo
involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof
waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic
lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale
andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater
andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto
financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame
progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa
solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw
Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy
theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower
demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand
forwaterandmakescopingwithwaterscarcityinthefutureeasier
AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking
waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom
abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated
productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall
businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree
dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty
reductionandincreasinglyimportantinrelationtotheenvironment
MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure
CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower
capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts
increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating
animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain
freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging
frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate
betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency
strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof
climatechangeoverwatersupplieshttpgooglOMvv1A
Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe
importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand
stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions
areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal
marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow
theyareregulatedandgoverned
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly
importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience
hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome
animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment
ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy
portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical
requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable
onessuchasfrackingfornaturalgas
Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith
increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas
slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe
developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources
64PartnershipsforPolicyResearchandInnovation
IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith
traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth
inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe
mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted
innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences
showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn
requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific
communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities
intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical
innovationsforthebusinessindustry
Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto
waterresourcesinChina
GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe
ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated
waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy
strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual
totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat
in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia
willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply
capacity
MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch
(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA
WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience
Press(inChinese)httpgoogl44E9Mo
44
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
45
6B
uild
ing
Part
ners
hips
ndashp
artn
ersh
ips
inp
ract
ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)
theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing
responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges
ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated
scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan
establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined
watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential
toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman
wellshybeing
TheEnergySustainabilityChallenge-ascienceindustrypartnership
ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts
InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina
examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof
energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge
(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply
andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand
consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment
systems
MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo
Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere
hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch
fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand
energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident
thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional
communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable
outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo
(TheWaterJPI)
TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment
andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe
EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting
partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland
technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets
inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities
Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping
safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry
implementingawatershywisebioshybasedeconomyclosingthewatercyclegap
Moreinformationwwwwaterjpieu
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe
importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular
underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased
scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI
thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding
ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand
downturnsetc
TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020
InnovationUnion
ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal
waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging
existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation
inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand
thegeneralpublic
MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport
waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation
ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference
Moreinformationwwweipshywatereu
Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly
identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific
knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales
rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest
Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution
ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp
stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies
andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto
bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved
TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy
Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute
toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis
includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater
savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure
isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis
expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut
also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en
46
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
47
7K
eyL
esso
nso
nPa
rtne
rshi
ps
7KeyLessonsonPartnerships
Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess
efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences
presentedinthisreport
1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge
varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe
developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater
andenergyefficiency
2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso
criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto
sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction
3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy
andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection
andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom
coalthermalandhydropower)islimitedbytheavailabilityofwater
4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy
-blindrdquo water policies
5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill
bemorecomplex
6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
solutionsthatintendtocope with one challenge at the expense of worsening the other
7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith
theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater
andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa
sustainablewaterandenergyeconomy
8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing
issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand
energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented
bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement
bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas
fossilfuels
bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces
minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal
waterconsumption
bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration
bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest
segmentsofsociety
bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess
sothatthevolumeofwaterrequiredforcoolingisdecreased
bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial
attractiveness
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal
powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother
sourcesintovalueanduse
bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty
andensureareliablecontinuouswatersourceforthepowerplant
bull Integratedenergyanddesalination(treatmentrecyclingetc)
bullCogenerationtorecoverheat
bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction
bullReducesludgedisposalcosts
bullUseorganicmaterialasafertilizer
bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand
thusgreenhousegasemissions
9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany
trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring
theconference
bullAlternativewatersourcesforcoolingmightbemoreexpensive
bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion
needofspecialtreatmentshealthrisksetc
bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption
bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy
demandsvaryseasonallydependingonmanylocalcircumstances
bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion
andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream
bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand
thenlessprofitableinfinancialterms
bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset
upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral
outcomesovercrossshysectoralresults
bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce
incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent
providedtheseincentivesarerevised
10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant
multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and
negative repercussions
11Thefollowingrecommendations may help society to take advantage of existing opportunities
andovercomewiththeexistingbarriers
bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation
andmaintenanceandavoidwasteanddistortions
bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand
sellingaservicearesourceortherightstousetheserviceorresource
bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal
powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat
mightcompeteforwatersupplies
48
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
49
7K
eyL
esso
nso
nPa
rtne
rshi
ps
bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe
moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater
forcoolingpurposes
bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain
savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe
powersector
bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater
conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing
structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand
avoidwasteanddistortions
12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability
atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments
socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are
required
bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown
bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand
investmentsthatwillensurecontinuousimprovement
bullGovernmentsneedtechnologicalandbusinesspartners
bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated
informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy
andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand
implementintegratedmanagementframeworks
13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake
advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute
tothefollowingrelevantobjectives
bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand
energyplanning
bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling
institutionalframeworks
bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities
bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability
bull Implementingwinshywinsolutionsthataremoresustainable
bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste
andinefficiency
bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand
effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized
investmentsandreducedinefficiencies
bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween
thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient
waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas
fromsludgefromwatertreatmentfacilities
bullMainstreamgenderconcernsintowaterandenergygovernance
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand
assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand
energypartnershipsThesearethemostimportant challenges and barriers partnerships might
need to cope with
bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting
ratherthanonfutureresources
bullThemutualignoranceofeachsectorinthewaterandenergycommunity
bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated
bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately
shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas
waterusersdopayforenergyeventhoughthepricesmaybesubsidized
shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport
majorsectorssuchasagricultureandindustry
bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen
regulatedandmanagedseparately
15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing
directions
bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses
Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic
sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic
authoritieswithoutmuchinvolvementofprivateagents
bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses
bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy
termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic
finance
bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition
forreturnoninvestment
bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure
reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping
utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing
bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable
strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction
resourceefficiency
bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective
researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate
changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives
bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation
bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns
bothtoimprovebusinessoperationsandsocialresponsibility
bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections
betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels
andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto
theexistingsustainabilitychallenges
50
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
51
7K
eyL
esso
nso
nPa
rtne
rshi
ps
16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein
improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information
deficiencies and gaps to be filled
bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before
theambitionofanintegratedaccountingsystembecomesaviabletarget)
bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy
generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto
waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects
technologychoicesetchellip)
bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe
optionsavailabletoreconcilefuturedemandsandsupplies
bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost
appropriatendashegwaterconsumptionvswithdrawal
17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask
sodonacutettrytomaketoomuchtoosoon
bullTrytocapitalizetheattractivenessofthefirsteasysteps
bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess
(donrsquotbetooambitiousinthefirststeps)
bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners
bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action
bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities
upinthepoliticalagenda
bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation
bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe
benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions
andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder
toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa
bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification
ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap
thecoshybenefitsofintegratedwaterandenergyactions
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
52
References
bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe
WaterndashFoodndashEnergyNexus
bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples
RepublicofChina
bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe
Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth
ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting
FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase
studies
bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount
bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook
bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas
bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer
onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities
bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA
Refe
renc
esPa
rtne
rshi
psfo
rim
prov
ing
wat
era
nde
nerg
yac
cess
effi
cien
cya
nds
usta
inab
ility
ComprehensiveAssessmentofWaterManagementinAgriculture
bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision
making
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter
Lives
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange
AdaptationPoliciestoNavigateUnchartedWaters
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein
bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach
bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook
to2050Theconsequencesofinaction
bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate
Nexus
bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange
Technologydevelopmentandtechnologytransfer
bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction
bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications
ofbiofueldevelopmentforwatermanagementanduse
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment
Report2Chapter9ldquoWaterandEnergyrdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment
Report3Part2Chapter7ldquoEvolutionofwateruserdquo
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment
Report4Volume1ManagingWaterunderUncertaintyandRisk
bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld
WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces
2011ndash2050
bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto
SustainableDevelopmentandPovertyEradication
bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication
ofintegratedapproachestowaterresourcesmanagement2012
bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus
bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring
wateruseinagreeneconomy
bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices
forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking
ondamsandtheiralternatives
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport
2011Industrialenergyefficiencyforsustainablewealthcreation
bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative
forSustainableIndustrialDevelopment
bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative
bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global
WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012
bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater
AnalyticalBrief
bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater
AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor
improvingwaterandenergyaccessefficiencyandsustainability
bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact
bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater
bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy
bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain
bullWorldEconomicForum2011WaterSecurity
53
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
54
Websites
bullTheWorldBankhttpwaterworldbankorgnode84122
bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy
4922ampy=shy168ampl=2ampv=homeampd=gmia
bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology
TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina
2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf
bullChangingExpectationsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations
bullClimateChangeCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange
bullDecliningWaterQualityCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality
bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012
httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf
bullHowtoFeedtheWorldin2050FAO2009
httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf
Web
site
s
bullIncreasingWaterDemandCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand
bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships
UNGlobalCompactOffice2007
httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf
httpwwwfaoorgNEWSROOMENnews20071000494indexhtml
Part
ners
hips
fori
mpr
ovin
gw
ater
and
ene
rgy
acce
sse
ffici
ency
and
sus
tain
abili
ty
bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance
UNEPInternationalResourcePanel2012
bullPhysicalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks
bullReputationalRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks
bullRegulatoryRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks
bullRisksbyIndustrySectorCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector
bullRisksinTheValueChainCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain
bullSharedRiskCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycasesharedshyrisk
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds
bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014
Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability
httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml
bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004
httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy
librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20
for20Poverty20Reductionpdf
bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009
httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf
bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite
httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply
55
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade
International Decade for Action lsquoWater for Lifersquo 2005-2015
A Decade for Water a Decade for Life
Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade
The designations employed and the materials presented in this publication in no way represent opinions
of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal
status of any country territory city or area or of its authorities or concerning the delimitation of its
frontiers or boundaries
United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)
Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain
Tel +34 976 72 42 20 Fax +34 976 72 42 33
water-decadeunorg wwwunorgwaterforlifedecade