1. Arjen Hoekstra UNESCO-IHE, Delft, Netherlands (www.ihe.nl) The role of virtual water transfer in water management

2. Virtual water content of products 1 kg grain1-2 m 3 water 1 kg cheese5 m 3 water 1 kg beef16 m 3 water Five hundred 32-MB chips (2 gram each) 16 m 3 water

3. Definition of virtual water Virtual water is the water ‘embodied’ in a product, not in real sense, but in virtual sense. It refers to the water needed for the production of the product.

4. Assessing virtual water trade flows Virtual water content of a crop Crop water requirement (m 3 /ha) / Crop yield (ton/ha) Virtual water content of a livestock product 1. Virtual water content of the live animal 2. Distribute this volume over the different products from this animal Virtual water trade flows Trade volume (ton/yr)  Virtual water content (m 3 /ton)

5. Basic data Global trade data United Nations Statistics Division, New York Virtual water content n Crop water requirements (m 3 /ha): CROPWAT (FAO) n Crop yields (ton/ha): FAOSTAT (FAO)

6. Virtual water History of the concept 1993-94Introduction of the concept by Tony Allan 12/2002International Expert Meeting on Virtual Water Trade, UNESCO-IHE, Delft, Netherlands 03/2003Session on ‘Virtual Water Trade and Geopolitics’ at the 3 rd World Water Forum, Japan

7. Virtual water State of current knowledge n Three global studies on virtual water trade. n Some national studies on virtual water trade (Middle East, North Africa, Southern Africa, Japan, China). n Knowledge on economic, environmental, social and cultural implications of current virtual water trade is nearly absent. n Knowledge on how to use virtual water trade as a means to relieve pressure on world’s water resourcesce is very weak.

8. Global virtual water trade between nations (1995-1999) Volume billion m 3 /yr Percentage % Crops and crop products Livestock and livestock products Industrial products 695 245 100 67 23 10 Total1040100 [Hoekstra, 2003]

9. Global virtual water trade between nations (1995-1999) Volume billion m 3 /yr Percentage % Crops and crop products Livestock and livestock products Industrial products 695 245 100 67 23 10 Total1040100 [Hoekstra, 2003] 30% wheat 17% soybean 15% rice 9% maize 7% raw sugar 5% barley

10. Global virtual water trade between nations (1995-1999) Volume billion m 3 /yr Percentage % Crops and crop products Livestock and livestock products Industrial products 695 245 100 67 23 10 Total1040100 [Hoekstra, 2003] 34%bovine meat 16%bovine hides and leather 12%cow milk & milk products 10%swine and its products 8%live bovine 4%sheep and its products

11. Global virtual water trade between nations (1995-1999) Volume billion m 3 /yr Percentage % Crops and crop products Livestock and livestock products Industrial products 695 245 100 67 23 10 Total1040100 [Hoekstra, 2003] = 16% of global water use!

12. Drawing a national ‘virtual water trade balance’ 1. How much water goes into the country in the form of imported products? 2. How much water leaves the country in the form of exported products?

13. Virtual water balance of the USA Net export of virtual water: 164 Gm 3 /yr Total water withdrawals USA: 500 Gm 3 /yr Available water resources: 2500 Gm 3 /yr = 1/15 of available resources

14. Virtual water balance of the Thailand Net export of virtual water: 46 Gm 3 /yr Available water resources: 179 Gm 3 /yr = 1/4 of available resources

15. Virtual water balance of the Japan Net import of virtual water: 82 Gm 3 /yr

16. Virtual water balance of the China Net import of virtual water: 19 Gm 3 /yr Water withdrawal: 550 Gm 3 /yr Water availability: 2800 Gm 3 /yr

17. Export virtual water 17 Import virtual water 34 1409 Annual virtual water budget Water footprint of China 1392 60% green water 40% blue water China Virtual water balance (Gm 3 /yr) Withdrawal 559 Green water use 816 Blue water 2812 Precipitation 6152 2524 Evapotranspiration (ET) from non-agricultural area 6152 Annual real water budget River discharge 2253 China Real water balance (Gm 3 /yr) ET 3340

18. National virtual water trade balances 1995-1999

19. Net virtual water exportNet virtual water import Top-7 list of countriesTop-7 list of countries Gm 3 /yr USA164Sri Lanka 84 Canada64Japan 82 Australia58Italy31 Argentina52South Korea 30 Thailand46Netherlands 25 India34Indonesia23 France22China19............. Period: 1995-1999

20. Virtual water Virtual water exporters importers 1. France1. Italy 2.Ukraine2. Netherlands 3.Ireland 3. Spain.....4. Germany 5. Russia 6. Belgium-Luxembourg 7. Portugal...... Europe Net export: 44% of Rhône runoff Net import: 67% of Po runoff Net import: 36% of Rhine runoff

21. Virtual water trade balances of thirteen world regions (1995-1999) Arrows show trade flows >100 Gm 3

22. Ranking of regions (1995-1999) Gross virtual water importGross virtual water export Gm 3 Central-South Asia1184North America 1317 Western Europe 643South America 415 North Africa 276Oceania 363 Middle East 261Southeast Asia 347 Southeast Asia 257Western Europe 266.............

23. the virtual water concept: what is the practical use?

24. 1. Virtual water: an alternative source of water Many national economies depend on (net) import of virtual water. For the period 1995-99: Jordan80%Italy20% Netherlands80%Egypt20% Japan40%South Africa20% Tunesia50%China4%

25. 2. Virtual water trade: global water savings Much of the international virtual water trade takes place from nations where water productivity is relatively high to nations where water productivity is relatively low.  global real water saving! 450 billion m 3 /yr saving due to global food trade = 8% of global water use for crop production! [Oki et al., 2003]

26. 3. Virtual water trade: an additional means to improve water use efficiency Local water use efficiency user level Technology, water price, environmental awareness of the water user Water allocation efficiency national / basin level Value of water in its alternative uses Global water use efficiency global level Virtual water trade between water-scarce and water- abundant regions

27. 4. Virtual water trade: an alternative to real interbasin water transfers Proposed large inter-basin water transfers: n China n India n South Africa n Spain Alternative: n Trade of water intensive products from water-rich to water-poor regions

28. 5. Virtual water storage: an alternative for dams [Renault, 2003]

29. 6. Calculation of national water footprints m 3 /yr per capita China, India, Indonesia500 Mexico1000 Netherlands, Belgium2000

30. Conclusion n 15-20% of the global water use is not used for domestic consumption but for export (in virtual form). n This is the global percentage; the situation strongly varies between countries. n The crude estimates show that it is very relevant to carry out virtual water analysis in any national or regional water policy study.

31. Future research agenda Accounting Develop a common methodology and standards for virtual water accounting Diets and footprints Understand the relation between consumption patterns, water needs, water scarcity and resulting virtual water trade Trade Analyse current trade flows, trade relations and dependencies; and develop projections under global change scenarios Application Enhance understanding of the implications of application of the virtual water concept on national and basin level Political impacts Enhance understanding of virtual water trade on the position of sovereign nations and the political processes underlying decisonmaking Awareness and debate Create a better understanding of consequences of conscious application

32. Thank you