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How to Ensure Sustainable Access to
Water for Food in a World of Growing
              Scarcity

               Claudia Ringler


"New Green Revolution? Meeting the Global Food and
                 Energy Demands
       March 4-6, Urbana-Champaign, Illinois
SUMMARY

    1. Agriculture continues as largest single user of
       freshwater resources in 2050 for all regions,
       although its share declines relative to industrial
       and domestic uses
    2. Sectoral competition and other water scarcity
       related problems will intensify
    3. Growing water scarcity will increasingly
       constrain food production growth, causing
       adverse impacts on food security and human
       wellbeing goals
    4. An increasing share of food production stems
       from often unsustainable groundwater use
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                                    Page 2
SUMMARY

    5. Reliability of agricultural water supply is projected
       to decline without improved water management
       policies
    6. Water pollution will increasingly constrain water
       availability and food production, particularly in
       developing countries. Water quality problems are
       more difficult to resolve and have long-run
       consequences
    7. While globally the amount of water withdrawn for
       biofuels is modest, local water scarcity problems
       may worsen due to direct and indirect impacts from
       agricultural water use for feedstock production
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                                       Page 3
SUMMARY

    8. Climate change will impact water resources
       for all uses--in particular ag water use--
       through gradual changes in precipitation,
       runoff, evaporative demands, and sea-level
       rise in productive delta areas, as well as
       through increased number and severity of
       extreme events (floods/drought/storms)
    9. Water conservation and productivity
       enhancement in rainfed and irrigated
       agriculture are needed to offset growing
       impacts of water scarcity on the environment
       and risks to farmers
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                               Page 4
SUMMARY

    10. There is significant untapped potential to
        use economic incentives for agricultural
        water management
    11. For agricultural water use to fulfill its full
        potential complementary investments in
        agricultural technologies (seeds,
        fertilizer), rural infrastructure (roads,
        telecommunications) and in
        complementary sectors (education,
        health) are needed
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                                    Page 5
Drivers of growing water scarcity

     1. Population growth & urbanization
     2. Economic growth             Changing diets
     3. Intensification of agricultural production
        (Water quality implications)
     4. Nonag demand (Industrialization/ ENV)
     5. Higher energy prices
     6. Growing demand for non-food crops
     7. Climate variability and climate change
     8. Slowing investments in water (some change
        in SSA)
     9. Unsustainable use & poor management
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                               Page 6
IFPRI IMPACT Food Producing Units




INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE      Page 7
Water use in agriculture
Projected changes in per capita water
        supply (SRES B2 CC scenario)
                                     2000     2050
       18,000
       16,000
       14,000
       12,000
       10,000
        8,000
        6,000
        4,000
        2,000
            0
                   CWANA          SSA          LAC    NAE   ESAP

     Source: IMPACT Model Projections
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                                                   Page 9
Growing Food Demand (Cereal Demand
             2000, and projected 2025 & 2050)




     Source: IMPACT Model Projections
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE   Page 10   Page 10
Rapid Increase in Per Capita Meat
             Consumption, 2000-2050




     Source: IMPACT Model Projections
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE   Page 11
Projected changes in irrigation and
                  other water consumption
                                           2000      2050
1400
1200
1000
 800
 600
 400
 200
   0
       Other       Irri   Other      Irri    Other      Irri   Other   Irri   Other       Irri

       CWANACWANA SSA               SSA      LAC       LAC     NAE     NAE    ESAP      ESAP



            Source: IMPACT Model Projections
       INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                                                                      Page 12
Water quality is declining in many parts of
              the developing world
    • In developing countries poor water quality is driven
      by industrialization, urbanization, and intensification
      of agriculture
    • Threats to water quality are greatest in areas where
      water is scarce
    • In Eastern Europe, Central and South America,
      China, and India water quality declined because of
      metals, pathogens, acidification, and organic matter
    • Nutrient concentrations have increased in rivers
      throughout the world
    • Water quality in the developing world is less well
      monitored and data comparability is problematic
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Projected changes in harvested
                   irrigated area
  300 

  250

  200                                                 CWANA
                                                      ESAP
  150
                                                      LAC
  100                                                 NAE

    50                                                SSA

     0
               2000              2025          2050

     Source: IMPACT Model Projections
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                                              Page 14
Projected declining irrigation water
                supply reliability
                                    2000       2050
   1.0
   0.9
   0.8
   0.7
   0.6
   0.5
   0.4
   0.3
   0.2
   0.1
   0.0
            CWANA            SSA               LAC     NAE   ESAP

     Source: IMPACT Model Projections
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                                                    Page 15
Projected changes in total agricultural
                  water use
           10000

           9000

            8000

            7000

            6000

            5000

            4000

            3000

            2000

            1000

               0




INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE   Source: IMPACT Model Projections 16
                                                                             Page
Energy cost, Climate variability
          & change
Higher Energy Prices:
    ..make HP more attractive, and more water use for
                        biofuels

                 500                                                                                               70
                                                                       Corn
                 450                                                   Rice
                                                                       Sugar                                       60
                                                                       Oil seeds
                 400
                                                                       Crude oil (right)

                 350                                                                                               50




                                                                                                                        Price (US$/barrel)
Price (US$/mt)




                 300
                                                                                                                   40

                 250

                                                                                                                   30
                 200


                 150                                                                                               20

                 100
                                                                                                                   10
                 50


                  0                                                                                                0
                       1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Biofuel expansion: small regional but
          potentially large local impacts
                    Moderate biofuel            Drastic biofuel
3.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5

            Change in irrigation water depletion
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
                                               Source: IMPACT Model Projections
Water Scarcity & Drought Stress


                                                                         Proportion of failed
                                                                         growing seasons
                                                                         for rainfed
                                                                         cultivation, 100
                                                                         year weather
                                                                         simulation

                                                                     Source: Hyman et al. (2008)

     Note: The figure illustrates 100 year weather simulation based on historic data analysis


     Drought
       • Lowers average expected yields
       • Increases production risk, reducing technology adoption of
         poor farmers
    INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Change in average cereal yield: Baseline and w/o
       climate change, 2000 and projected 2050


                         2000      2050 no CC   2050 baseline
    6000

    5000

    4000

    3000

    2000

    1000

        0
                CWANA              ESAP         LAC             SSA

     Source: IMPACT Model Projections (SRES B2 scenario)
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE                          Page 21
Change in wheat yield (%) due to climate change
          with hydrologic effects, 2000-2050




 Source: IFPRI IMPACT simulations for HadCM3/SRESB2 scenario (with
          IMAGE temperature and CO2 fertilization effects), April 2008
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE                    Page 22
Global price of wheat:
    Baseline and without climate change, 2000-2050

                 wheat no CC            wheat CC   wheat CC_noCO2

          300
          250
          200
          150
          100
           50
             0
                 2000
                 2003
                 2006
                 2009
                 2012
                 2015
                 2018
                 2021
                 2024
                 2027
                 2030
                 2033
                 2036
                 2039
                 2042
                 2045
                 2048
Source: IFPRI IMPACT simulations for HadCM3/SRESB2 scenario (with IMAGE
        temperature and CO2 fertilization effects), April 2008
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE                        Page 23
Avenues for Policy Reform
     and Investment
Challenges to be Met

           Rapid economic, technological, and
            climate change
           Significantly increasing water scarcity both
            in terms of quantity and quality
           Need to reform water management,
            policies, and investments to improve water
            use efficiency
           Need to increase flexibility of water and
            food systems and adaptability to stress
           Look for solutions outside the water sector

INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE            Page 25
Support for Improved Demand
            Management: Incentives and Flexibility


         Facilitation of intersectoral water
          transfers
         Finance multisector negotiation for
          water transfers
         Establishment of water rights
         Establishment of economic
          incentives in water allocation


INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE    Page 26
Public-Private Partnerships

      Devolution of irrigation infrastructure and
       management to WUA
           • Build on existing social capital or patterns of
             cooperation
           • Supportive policy and legal environment
             including
                – Establishment and adjudication of secure water
                  rights including property rights over infrastructure
                – Monitoring and regulating externalities and third
                  party effects of irrigation
                – Provide technical and organizational training and
                  support
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE                             Page 27
Economic Incentives for Efficient
                      Water Use

          Establish economic incentives
                • Establish water rights for users
                • Direct price increases for households and
                  industry, with subsidies targeted to the
                  poor
                • Irrigation water price increase can be
                  punitive to farmers
                • Design pricing mechanisms to pay
                  irrigators to use less water


INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE               Page 28
Water and Irrigation Investment

       Increased investment in household water
        supply and sanitation
       Selective investments to expand irrigation,
        drainage and storage
             • Technological development (drip, micro-
               sprinkler, real-time management)
             • High financial and environmental costs,
               but some expansion necessary
       Increasing profitability of storage means
        expanded opportunities
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE             Page 29
Agricultural Research and Technology

     Increasing crop productivity: water
      management, agricultural research and
      rural investment
           • Emphasis on crop breeding for both
             irrigated and rainfed agriculture
                – genetic modifications to develop stress tolerant
                  materials to address water scarcity, salinization
                  and groundwater contamination
           • Water harvesting, minimum tillage,
             integrated soil fertility management
           • Rural infrastructure investment to improve
             access to markets, credit, inputs
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE                    Page 30
Increasing the Openness of
                        Agricultural Trade
    Trade will increase dramatically under
     climate change scenarios
    Openness of trade will increase efficiency in
     irrigation water use
    Need to restore confidence in international
     trading system
         • Complete the WTO Doha Round trade
           negotiations
         • Reduce agricultural subsidies and trade barriers
         • Establish international facility to finance
           emergency food imports
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE                  Page 31

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Access to water and food under growing scarcity

  • 1. How to Ensure Sustainable Access to Water for Food in a World of Growing Scarcity Claudia Ringler "New Green Revolution? Meeting the Global Food and Energy Demands March 4-6, Urbana-Champaign, Illinois
  • 2. SUMMARY 1. Agriculture continues as largest single user of freshwater resources in 2050 for all regions, although its share declines relative to industrial and domestic uses 2. Sectoral competition and other water scarcity related problems will intensify 3. Growing water scarcity will increasingly constrain food production growth, causing adverse impacts on food security and human wellbeing goals 4. An increasing share of food production stems from often unsustainable groundwater use INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 2
  • 3. SUMMARY 5. Reliability of agricultural water supply is projected to decline without improved water management policies 6. Water pollution will increasingly constrain water availability and food production, particularly in developing countries. Water quality problems are more difficult to resolve and have long-run consequences 7. While globally the amount of water withdrawn for biofuels is modest, local water scarcity problems may worsen due to direct and indirect impacts from agricultural water use for feedstock production INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 3
  • 4. SUMMARY 8. Climate change will impact water resources for all uses--in particular ag water use-- through gradual changes in precipitation, runoff, evaporative demands, and sea-level rise in productive delta areas, as well as through increased number and severity of extreme events (floods/drought/storms) 9. Water conservation and productivity enhancement in rainfed and irrigated agriculture are needed to offset growing impacts of water scarcity on the environment and risks to farmers INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE  Page 4
  • 5. SUMMARY 10. There is significant untapped potential to use economic incentives for agricultural water management 11. For agricultural water use to fulfill its full potential complementary investments in agricultural technologies (seeds, fertilizer), rural infrastructure (roads, telecommunications) and in complementary sectors (education, health) are needed INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 5
  • 6. Drivers of growing water scarcity 1. Population growth & urbanization 2. Economic growth Changing diets 3. Intensification of agricultural production (Water quality implications) 4. Nonag demand (Industrialization/ ENV) 5. Higher energy prices 6. Growing demand for non-food crops 7. Climate variability and climate change 8. Slowing investments in water (some change in SSA) 9. Unsustainable use & poor management INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 6
  • 7. IFPRI IMPACT Food Producing Units INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 7
  • 8. Water use in agriculture
  • 9. Projected changes in per capita water supply (SRES B2 CC scenario)  2000 2050 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 CWANA SSA LAC NAE ESAP Source: IMPACT Model Projections INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 9
  • 10. Growing Food Demand (Cereal Demand 2000, and projected 2025 & 2050) Source: IMPACT Model Projections INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 10 Page 10
  • 11. Rapid Increase in Per Capita Meat Consumption, 2000-2050 Source: IMPACT Model Projections INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 11
  • 12. Projected changes in irrigation and other water consumption  2000 2050 1400 1200 1000 800 600 400 200 0 Other Irri Other Irri Other Irri Other Irri Other Irri CWANACWANA SSA SSA LAC LAC NAE NAE ESAP ESAP Source: IMPACT Model Projections INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 12
  • 13. Water quality is declining in many parts of the developing world • In developing countries poor water quality is driven by industrialization, urbanization, and intensification of agriculture • Threats to water quality are greatest in areas where water is scarce • In Eastern Europe, Central and South America, China, and India water quality declined because of metals, pathogens, acidification, and organic matter • Nutrient concentrations have increased in rivers throughout the world • Water quality in the developing world is less well monitored and data comparability is problematic INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 14. Projected changes in harvested irrigated area 300  250 200 CWANA ESAP 150 LAC 100 NAE 50 SSA 0 2000 2025 2050 Source: IMPACT Model Projections INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 14
  • 15. Projected declining irrigation water supply reliability  2000 2050 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 CWANA SSA LAC NAE ESAP Source: IMPACT Model Projections INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 15
  • 16. Projected changes in total agricultural water use 10000  9000 8000 7000 6000 5000 4000 3000 2000 1000 0 INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Source: IMPACT Model Projections 16 Page
  • 17. Energy cost, Climate variability & change
  • 18. Higher Energy Prices: ..make HP more attractive, and more water use for biofuels 500 70 Corn 450 Rice Sugar 60 Oil seeds 400 Crude oil (right) 350 50 Price (US$/barrel) Price (US$/mt) 300 40 250 30 200 150 20 100 10 50 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
  • 19. Biofuel expansion: small regional but potentially large local impacts Moderate biofuel Drastic biofuel 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 Change in irrigation water depletion INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Source: IMPACT Model Projections
  • 20. Water Scarcity & Drought Stress Proportion of failed growing seasons for rainfed cultivation, 100 year weather simulation Source: Hyman et al. (2008) Note: The figure illustrates 100 year weather simulation based on historic data analysis  Drought • Lowers average expected yields • Increases production risk, reducing technology adoption of poor farmers INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  • 21. Change in average cereal yield: Baseline and w/o climate change, 2000 and projected 2050 2000 2050 no CC 2050 baseline 6000 5000 4000 3000 2000 1000 0 CWANA ESAP LAC SSA Source: IMPACT Model Projections (SRES B2 scenario) INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 21
  • 22. Change in wheat yield (%) due to climate change with hydrologic effects, 2000-2050 Source: IFPRI IMPACT simulations for HadCM3/SRESB2 scenario (with IMAGE temperature and CO2 fertilization effects), April 2008 INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 22
  • 23. Global price of wheat: Baseline and without climate change, 2000-2050 wheat no CC wheat CC wheat CC_noCO2 300 250 200 150 100 50 0 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030 2033 2036 2039 2042 2045 2048 Source: IFPRI IMPACT simulations for HadCM3/SRESB2 scenario (with IMAGE temperature and CO2 fertilization effects), April 2008 INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 23
  • 24. Avenues for Policy Reform and Investment
  • 25. Challenges to be Met  Rapid economic, technological, and climate change  Significantly increasing water scarcity both in terms of quantity and quality  Need to reform water management, policies, and investments to improve water use efficiency  Need to increase flexibility of water and food systems and adaptability to stress  Look for solutions outside the water sector INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 25
  • 26. Support for Improved Demand Management: Incentives and Flexibility  Facilitation of intersectoral water transfers  Finance multisector negotiation for water transfers  Establishment of water rights  Establishment of economic incentives in water allocation INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 26
  • 27. Public-Private Partnerships  Devolution of irrigation infrastructure and management to WUA • Build on existing social capital or patterns of cooperation • Supportive policy and legal environment including – Establishment and adjudication of secure water rights including property rights over infrastructure – Monitoring and regulating externalities and third party effects of irrigation – Provide technical and organizational training and support INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 27
  • 28. Economic Incentives for Efficient Water Use  Establish economic incentives • Establish water rights for users • Direct price increases for households and industry, with subsidies targeted to the poor • Irrigation water price increase can be punitive to farmers • Design pricing mechanisms to pay irrigators to use less water INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 28
  • 29. Water and Irrigation Investment  Increased investment in household water supply and sanitation  Selective investments to expand irrigation, drainage and storage • Technological development (drip, micro- sprinkler, real-time management) • High financial and environmental costs, but some expansion necessary  Increasing profitability of storage means expanded opportunities INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 29
  • 30. Agricultural Research and Technology  Increasing crop productivity: water management, agricultural research and rural investment • Emphasis on crop breeding for both irrigated and rainfed agriculture – genetic modifications to develop stress tolerant materials to address water scarcity, salinization and groundwater contamination • Water harvesting, minimum tillage, integrated soil fertility management • Rural infrastructure investment to improve access to markets, credit, inputs INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 30
  • 31. Increasing the Openness of Agricultural Trade  Trade will increase dramatically under climate change scenarios  Openness of trade will increase efficiency in irrigation water use  Need to restore confidence in international trading system • Complete the WTO Doha Round trade negotiations • Reduce agricultural subsidies and trade barriers • Establish international facility to finance emergency food imports INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 31