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EARLY WARNING SYSTEMS FOR
FOOD-WATER-ENERGY NEXUS IN
GMS

                                             SVRK Prabhakar
                               Senior Policy Researcher, IGES




International Conference on GMS 2020: Balancing Economic Growth and
    Environmental Sustainability, Bangkok, Thailand. 20-21 Feb 2012
Food-Water-Energy Nexus
“Before the world’s fossil fuels are finally exhausted, it is likely that their extraction
   will require an unimaginable amount of water”
          Gérard Velter, general manager of Veolia Water for Africa, Middle East and India
“When measured in calories, the energy market is twenty times the food market.
  So if governments would replace only 10% of global energy consumption with
  first-generation biofuels, they in the same stroke would double agricultural
  water withdrawals”
                                      Peter Braebeck-Letmathe, Chairman, Nestle Group
“The share of biofuels in total use of coarse grains is projected to increase until
   2015, reaching 13%”
                                                  UN FAO Agricultural Outlook 2010-2019
“The area currently under cultivation is 1.5 billion hectares, so if all that extra land
   could be used it would represent an increase of one-third. In fact a lot of it
   either should be left alone for environmental reasons or would be too
   expensive to farm.”
                                       The Economist special report on feeding the world
                                                                               Keane, 2011
F-W-E Nexus




              WEF, 2011
Why do we need EWSs for F-W-E?

 Food, water and energy systems are
   Finite
   complexly interconnected
 Catastrophic consequences of fluctuations in
  one system effects each other
   Global oil crisis of 2008
   Biofuel boom during 2008-2010
   Global food crisis 2008 and 2011
The Food Crisis [and Peace]




                    Guardian, 2011
                                     FAO, 2012


    Did we know it was coming?
Reasons for Food Crisis


                     Assumptions                        Marco Lagi et al., 2011
Adverse weather (Drought in Australia)                            X
Land conversion to biofuel use                                    O
Shifting investor speculative focus from mortgage and             O
stock markets to commodity markets
Change in dietary patterns in developing countries                X




    Could EWSs avoided this catastrophic impact?
Real World Examples for EWS
 Energy:
   European Union-Russia proposal for building a EWS for energy
    that simulates the supply and demand situation in the region
    (European Union, 2009).
 Food production:
   Crop Weather Watch Group, India: Have failed to warn
    impending crop losses and couldn’t take advantage of
    recovering monsoon in 2004 drought.
   Several other drought monitoring tools being implemented in
    the region including west-asia drought monitor based on USDA
    drought monitor.
 Water:
   FMMC of MRC: hydro-meteorological network.
Issues with these EWSs

 Specialized: only energy or water or food
 Narrow based: e.g. do not consider the impact
  of energy prices on food
 Limited to hazard-mitigation approach
  (drought or flood forecasting)
 Not full-spectrum: limited to crop
  establishment or output and do not forecast
  prices
What an EWS Should be able to
    do for F-W-E?
 Help visualize demand and supply situation of food, water, and
    energy in the region on a short-, medium-, and long-term basis;
   Give projections on prices of food, water, and energy on an
    immediate and long-term basis so that countries can make
    preventive and proactive strategies;
   Help policy makers at various levels to plan appropriate crops, water
    usage, and water conservation practices, and how energy is produced
    and consumed at the regional and national scales;
   Help in appropriate allocation of resources for food and energy
    production while keeping in view such constraints as environmental
    health, climate change, food prices, and sustainability of resources
    employed; and
   Help develop a set of standard operational procedures to be invoked
    in a situation like the 2008 and 2011 food crisis.
SCHEMATIC REPRESENTATION OF A
  SIMPLE EWS FOR F-W-E
                                                                  Global
                                    Productivity
Regional
National      Demand for
                                   Consumption
Local      Food/Water/Energy


                                   Export/Import


                                 Ecological/bio-physical/socio-
                                 economic/Climatic Constraints

Regional
National      Allocation of
               Resources
Local

                 Output
           (food/water/energy)
Determinants of Early Warning
Systems
 How the system is defined in terms of
  feedback connections between different
  actors/components of the system.
 The precision with which the dynamic and
  static forces are quantified and represented,
  and
 Interpretation of the outcomes as against
  what it actually means, with implications for
  the institutions that use the EWS for policy
  purposes.
Opportunities for EWSs in GMS

 The Mekong River. The Mekong River acts as a single
  most important integrating factor, providing the
  opportunity to develop the EWS around it.
 Institutional system. Institutions with regional
  mandate such as the Mekong River Commission
  (MRC) could have significant impact on the way
  other institutions set policies and processes in
  managing water resources facilitating a centralized
  decision making system.
 Growing economic integration. Countries in the sub-
  region are increasingly integrated in terms of
  economic activities that is well studied (e.g., trade of
  goods and services).
Challenges for EWS in GMS

 Complex nature of the food-water-energy nexus. This is
  largely brought by the uncertainty in climate projections,
  future growth patterns, and changing food preferences
  of the people that can introduce many “unknowns” that
  influence the effectiveness with which the EWS can
  work.
 Poor availability of data. Real time and quality data are
  often a problem in the sub-region and can greatly
  influence the effectiveness of a EWS. Such approaches as
  integrated river basin level resource management using
  water balance models could be useful to avoid water
  shortages. These are data-intensive approaches and lack
  of quality data hinders their adoption and effectiveness.
Challenges Cont…
 Attitudinal factors of stakeholders. As with any other EWS,
  different actors in the region may not trust the EWS and
  may not consider it as a decision-making tool. Thus, there is
  a need for awareness generation and capacity building of
  different stakeholders.
 Poor development of regional coordination mechanisms for
  the use of certain common natural resources. As an example
  of both the solution and problem, disputes related to how
  the water in the Mekong River should be equitably used by
  various countries on upstream and downstream has not
  been resolved. Development of a EWS may help resolve
  this problem since stakeholders in the region would be able
  to visualize how downstream users are affected by
  overexploitation by upstream users, leading to amicable
  allocation of water resources to individual countries.
Off-the Shelf Approaches to
Minimize Food-Water-Energy
Conflicts
 Identification and promotion of agro-technologies that
    provide synergistic advantage in terms of improved
    productivity, profits, and climate benefits.
   Moving to river-basin based water resource management
    can enhance water use efficiency.
   Tapping the unrealized irrigation potential in the Basin.
   Improving weather forecasting systems and proper
    communication of the same.
   Improving energy use efficiency in the region can reduce
    demand for energy.
   Creating east-Asia energy community/grid can help
    harmonize the demand and supply patterns of energy in
    the region.
prabhakar@iges.or.jp

THANK YOU!

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Early warning systems for food water-energy nexus in GMS region

  • 1. EARLY WARNING SYSTEMS FOR FOOD-WATER-ENERGY NEXUS IN GMS SVRK Prabhakar Senior Policy Researcher, IGES International Conference on GMS 2020: Balancing Economic Growth and Environmental Sustainability, Bangkok, Thailand. 20-21 Feb 2012
  • 2. Food-Water-Energy Nexus “Before the world’s fossil fuels are finally exhausted, it is likely that their extraction will require an unimaginable amount of water” Gérard Velter, general manager of Veolia Water for Africa, Middle East and India “When measured in calories, the energy market is twenty times the food market. So if governments would replace only 10% of global energy consumption with first-generation biofuels, they in the same stroke would double agricultural water withdrawals” Peter Braebeck-Letmathe, Chairman, Nestle Group “The share of biofuels in total use of coarse grains is projected to increase until 2015, reaching 13%” UN FAO Agricultural Outlook 2010-2019 “The area currently under cultivation is 1.5 billion hectares, so if all that extra land could be used it would represent an increase of one-third. In fact a lot of it either should be left alone for environmental reasons or would be too expensive to farm.” The Economist special report on feeding the world Keane, 2011
  • 3. F-W-E Nexus WEF, 2011
  • 4. Why do we need EWSs for F-W-E?  Food, water and energy systems are  Finite  complexly interconnected  Catastrophic consequences of fluctuations in one system effects each other  Global oil crisis of 2008  Biofuel boom during 2008-2010  Global food crisis 2008 and 2011
  • 5. The Food Crisis [and Peace] Guardian, 2011 FAO, 2012 Did we know it was coming?
  • 6. Reasons for Food Crisis Assumptions Marco Lagi et al., 2011 Adverse weather (Drought in Australia) X Land conversion to biofuel use O Shifting investor speculative focus from mortgage and O stock markets to commodity markets Change in dietary patterns in developing countries X Could EWSs avoided this catastrophic impact?
  • 7. Real World Examples for EWS  Energy:  European Union-Russia proposal for building a EWS for energy that simulates the supply and demand situation in the region (European Union, 2009).  Food production:  Crop Weather Watch Group, India: Have failed to warn impending crop losses and couldn’t take advantage of recovering monsoon in 2004 drought.  Several other drought monitoring tools being implemented in the region including west-asia drought monitor based on USDA drought monitor.  Water:  FMMC of MRC: hydro-meteorological network.
  • 8. Issues with these EWSs  Specialized: only energy or water or food  Narrow based: e.g. do not consider the impact of energy prices on food  Limited to hazard-mitigation approach (drought or flood forecasting)  Not full-spectrum: limited to crop establishment or output and do not forecast prices
  • 9. What an EWS Should be able to do for F-W-E?  Help visualize demand and supply situation of food, water, and energy in the region on a short-, medium-, and long-term basis;  Give projections on prices of food, water, and energy on an immediate and long-term basis so that countries can make preventive and proactive strategies;  Help policy makers at various levels to plan appropriate crops, water usage, and water conservation practices, and how energy is produced and consumed at the regional and national scales;  Help in appropriate allocation of resources for food and energy production while keeping in view such constraints as environmental health, climate change, food prices, and sustainability of resources employed; and  Help develop a set of standard operational procedures to be invoked in a situation like the 2008 and 2011 food crisis.
  • 10. SCHEMATIC REPRESENTATION OF A SIMPLE EWS FOR F-W-E Global Productivity Regional National Demand for Consumption Local Food/Water/Energy Export/Import Ecological/bio-physical/socio- economic/Climatic Constraints Regional National Allocation of Resources Local Output (food/water/energy)
  • 11. Determinants of Early Warning Systems  How the system is defined in terms of feedback connections between different actors/components of the system.  The precision with which the dynamic and static forces are quantified and represented, and  Interpretation of the outcomes as against what it actually means, with implications for the institutions that use the EWS for policy purposes.
  • 12. Opportunities for EWSs in GMS  The Mekong River. The Mekong River acts as a single most important integrating factor, providing the opportunity to develop the EWS around it.  Institutional system. Institutions with regional mandate such as the Mekong River Commission (MRC) could have significant impact on the way other institutions set policies and processes in managing water resources facilitating a centralized decision making system.  Growing economic integration. Countries in the sub- region are increasingly integrated in terms of economic activities that is well studied (e.g., trade of goods and services).
  • 13. Challenges for EWS in GMS  Complex nature of the food-water-energy nexus. This is largely brought by the uncertainty in climate projections, future growth patterns, and changing food preferences of the people that can introduce many “unknowns” that influence the effectiveness with which the EWS can work.  Poor availability of data. Real time and quality data are often a problem in the sub-region and can greatly influence the effectiveness of a EWS. Such approaches as integrated river basin level resource management using water balance models could be useful to avoid water shortages. These are data-intensive approaches and lack of quality data hinders their adoption and effectiveness.
  • 14. Challenges Cont…  Attitudinal factors of stakeholders. As with any other EWS, different actors in the region may not trust the EWS and may not consider it as a decision-making tool. Thus, there is a need for awareness generation and capacity building of different stakeholders.  Poor development of regional coordination mechanisms for the use of certain common natural resources. As an example of both the solution and problem, disputes related to how the water in the Mekong River should be equitably used by various countries on upstream and downstream has not been resolved. Development of a EWS may help resolve this problem since stakeholders in the region would be able to visualize how downstream users are affected by overexploitation by upstream users, leading to amicable allocation of water resources to individual countries.
  • 15. Off-the Shelf Approaches to Minimize Food-Water-Energy Conflicts  Identification and promotion of agro-technologies that provide synergistic advantage in terms of improved productivity, profits, and climate benefits.  Moving to river-basin based water resource management can enhance water use efficiency.  Tapping the unrealized irrigation potential in the Basin.  Improving weather forecasting systems and proper communication of the same.  Improving energy use efficiency in the region can reduce demand for energy.  Creating east-Asia energy community/grid can help harmonize the demand and supply patterns of energy in the region.

Editor's Notes

  1. http://www.altenergystocks.com/archives/2011/04/the_water_food_energy_climate_nexus_pt_1.html
  2. http://www.guardian.co.uk/environment/damian-carrington-blog/2011/aug/25/food-price-arab-middle-east-protests
  3. http://arxiv.org/pdf/1109.4859v1.pdf