Panel Discussion “Nexus between Water and Energy K. Yumkella, Director General, UNIDO 18 June,

The Nexus between Water and Energy “Energy production consumes significant amounts of water; providing water, in turn, consumes energy. In a world where water scarcity is a major and growing challenge, meeting future energy needs depends on water availability –and meeting water needs depends on wise energy policy decisions.” (World Policy Institute and EBG Capital, March 2011(World Policy Institute and EBG Capital, March 2011)

3 Energy needs water Energy production depends on water  some 580 billion cubic metres of freshwater are withdrawn for energy production every year (IEA, 2012) Water is used for primary energy production as well as power generation esp. for cooling at thermal power plants Extraction, transport and processing of fuels and irrigation to grow biomass feed-stock are also water- intensive Key uses of water for primary production (IEA, 2012)

4 Water needs energy Energy is vital to providing freshwater  needed to power systems that collect, transport, distribute and treat water. (US Department of Energy, 2006)

5 Energy-Water-Nexus in Numbers (IEA, World Energy Outlook, 2012) Overview of water requirements for different energy sources. Primary productionPower generation

Population growth and urbanisation Source: WEO, 2012 (Table 1.3)

People without access to electricity (2010) Data source: IEA WEO 2012 Table 18.1, p532

Decision-making at the Nexus: The Key Challenge for post-2015 Development Framework and SDGs Energy decisions have a broad range of impacts on water, with consequences for business, security, environment, social equity and development. Identifying these interrelationships presents opportunities for policy makers, business leaders, investors, non-governmental organizations for informed policy and governance to address related problems and global challenges (e.g. climate change, food and energy security or eliminating poverty). 8

Vienna Energy Forum : The Energy Future We Want - Considering Water & Food in the Energy Debate (side event) UNIDO, in collaboration with international partners, including IIASA, GIZ, BMZ, SE4ALL, OPEC and the Vienna Energy Club, organized a side event on the water-energy-food nexus during the Vienna Energy Forum. Policy-makers and representatives from the private sector and academia debated the intricate link between water, energy and food, and explore the opportunities presented by this link to address major global development challenges: Intersectoral dialogue is required to address security concerns in the water-energy-food nexus; Integrated approach to water-energy-food nexus will lower the cost of achieving global energy goals (i.e. SE4All goals); While the need to consider water-energy-food in the nexus is broadly acknowledged, the tools and expertise are not fully available to support political dialogue; Integrated resource planning tools and analysis are required to address complexity. Thinking in a water, energy and food security nexus perspective is central to the Green Industry and the consideration of SDGs. 9

UNIDO Activities in Water Energy Nexus UNIDO-IIASA Study on Water- Energy Nexus: Defining critical linkages between water and energy Exploring opportunities for informed policy and governance Examining the potential to pursue the Nexus in the SE4ALL Agenda Exploring options for capacity development and knowledge- sharing 10

11 Future outlook & policy implications Water withdrawal by the energy sector is expected to rise by one-fifth through 2035, while the amount consumed (not returned directly to the environment) by a more dramatic 85% (IEA, 2012) While nations evaluate their energy options and develop their policies, appropriate incentives will need to be employed to encourage technologies that promote sustainable energy production – from a cost, carbon, security and water perspective. Given the location-specific nature of water resources, the nexus must be considered at the water basin level, or even at particular sites. Stakeholders will need to know how to manage the trade-offs between water and energy at the local, national, and cross-border levels.

THE GREEN INDUSTRY INITIATIVE Greening of Industries Helping enterprises improve resource productivity and environmental performance Creating New Green Industries Establishing new operations delivering environmental goods and services  Efficient use of materials, energy and water  Reduction of wastes and emissions  Safe and responsible management of chemicals, renewable raw materials  Phasing out toxic substances  Substituting fossil fuels with renewable energy sources  Product and process redesign, Green Chemistry  Reduce, reuse and recycle (3R) industries  Pollution control technology and equipment  Renewable and energy-efficient technologies  Waste management and resource recovery  Environmental advisory and analytical services

BENEFITS OF GREEN INDUSTRY Economic More Innovation and Growth; Increased Resilience… Social More Employment, Rising Incomes and Empowerment… Environmental More Efficient Resource Use; Less Waste and Pollution… Increase resource productivity Bring down production costs Foster technology development and innovation Improve competitiveness Open up new markets Develop new businesses Create new jobs and make existing jobs more secure Reduce poverty Develop new skills and capacity Improve occupational health and safety conditions Safeguard health and safety of communities Lower risks to consumers Reduce environmental pollution Counteract resource depletion Prevent degradation of ecosystems Mitigate climate change Combat water scarcity

High-level, multi-stakeholder, transformative partnership framework Reduces the negative environmental impact of manufacturing Increases social and economic benefits Only comprehensive, targeted and practical sector-based strategy Members include businesses, governments, international and civil society organizations GREEN INDUSTRY PLATFORM LAUNCHED AT RIO+20

Resource EfficiencyWater Optimization Industrial Energy Efficiency Chemicals Management PRIORITY AREAS

MEMBERS COMMIT TO…  Improving Resource Efficiency  Strengthening Waste Management  Reducing and Eliminating Toxic Materials  Pursuing Energy Efficiency and Using Renewable Energy  Adopting a Lifetime Approach to Product Manufacture  Making Finance Available to Green Industry  Promoting Technology Transfer and Sharing Best Practices  Greening Global Value Chains  Supporting Green Industry Research and Innovation  Fostering Green Industries and Jobs  Setting Green Industry Targets

MEMBERSHIP STATUS Expressions of interest from over 70 more entities Second wave of targeted invitations upcoming (Top performers in sustainability, academic and research institutions and charitable foundations) As of 23/05/2013  25 Governments  70 Businesses  51 Int’l, Business, Civil Society Organizations { Platform Members 146

Thank you for your attention