Water, Food and Energy Nexus innovations Melbourne May 12th, 2016 Petra Hellegers Roundtable

Structure of the presentation  Global agenda: why does the nexus matter?  Nexus challenges  Nexus innovations ● Technical innovations ● System innovations ● Governance innovations  Impact of innovations on various spatial scales  Questions to discuss 2

Global agenda: why does the nexus matter?  To achieve the SDG (sustainable development goals) business as usual by sector is insufficient  There are trade-offs between voluntary GHG emission schemes, such as biofuels and hydropower, and water 3

Interdependence between water, food & energy  Food needs water (irrigation needs energy)  Water needs energy (extraction, treatment, transport)  Energy needs water (hydropower, fuel extraction, biofuels) 4

Need for Water, Food and Energy innovations 5

It is all about trade-offs and synergies For example The value of water for energy is higher -in terms of economic outputs-, but water for agriculture is required for various social reasons, such as food security, rural development, social stability 6

Nexus challenges  Infrastructure is planned in silos  Information asymmetrics (not all have access)  Institutions (no ministry of nexus, only sector regulations) 7

The energy sector versus the agrofood sector  In the energy sector the nexus is accepted  In the agrofood sector still a lot needs to be done in Europe.... 8

Agrofood sector: Global forces – Local impacts  International trade in food crops affects local water resources worldwide  Consumers of water-intensive products do not take into account the potentially negative effect of their consumption on water resources elsewhere 9 Legend: Virtual water imports into Europe. Source: Mekonnen, M.M. and Hoekstra, A.Y. (2011)

10 A supply chain approach does not seem to be “the solution” – certification (water sustainability standard) is difficult due to variability and spatial diversity The closing of water and nutrient cycles at local and regional scale is proposed (but requires energy) Closing cycles

Impact of innovations on various spatial scales  Technological innovation ● Local desalination vs increased global GHG emissions  System innovation ● Improved irrigation efficiency does not save water at basin level  Governance innovation ● Integrated planning of energy & water investments possible? (different system boundaries) 11

Who is responsible for Global Local (Glocal) governance?  Public - Government? International trade is hardly steered by water scarcity due to fluctuating food prices, reluctance to rely on foreign supplies, foreign exchange shortages  Private - Companies? Multi-nationals minimise their costs at local level and maximise their profits at the global level  Consumers - Society? How do you know? Certification schemes? 12

Glocal (Global-Local) governance 13 From reactive towards a proactive role for multinationals in glocal governance

Questions to discuss  Does the nexus exist in Australia?  How can you test the nexus? ● Scale is important  Policies and innovations to enhance the nexus?  Is it just a game of unintended consequences? 14

Questions to discuss  What kind of technological & system innovations are undertaken and then required?  How to account for it?  How to make it accountable?  What is the required governance model?  Can we have a planning system that takes account of water, food and energy? ● If so, how would you go about them? 15

 Thank you very much for your attention 16