ERD Confronting scarcity: Managing water, energy and land for inclusive and sustainable growth

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1 ERD 2012 Confronting scarcity: Managing water, energy and land for inclusive and sustainable growth

2 ERD 2012 in a nutshell Access to water, energy and land is crucial for human development, but global and interrelated environmental pressures are undermining the development prospects of the poorest countries and people. All countries urgently need to recognise and address in an integrated manner the rapidly growing scarcity and increased pressures on water, energy and land (WEL). This involves a WEL nexus approach to policy-making and management. Requires joint action by a variety of actors (governments, business, and international actors such as the EU) to promote inclusive and sustainable growth (ISG) around a four-pillar response. Influence research & policy in 2012 and after: Rio+20,G20,EU,national level

3 Challenges & Opportunities Close to 1 billion people are undernourished, 0.9 billion lack access to safe water and 1.5 billion have no source of electricity. The demand for energy and water is expected to grow by 40% and for food by 50% by 2030 compared to present levels. Planetary boundaries are being transgressed with risks of tipping points. Business as usual associated with costs and lock-in effects : environmental stresses (e.g. in water) affect women and girls disproportionally; lack of energy a binding constraint to growth; poorest often losers from large scale land deals. Opportunities in moving towards a new model: e.g. renewable energy, or investment in resource efficiency and natural assets. Pressures are exacerbated when solutions to resource constraints in one area place additional strains on another.

4 Water-energy-land (WEL)

5 Managing the WEL nexus: illustrative examples in ERD Biofuels and effects on water and land (renewable energy policies in various countries incl. EU); Hydropower planning, land use and benefit sharing schemes (e.g. dams and land use in China) ; Large vs small scale agricultural systems (e.g. Brazil) Large scale land deals and water withdrawals (e.g. land policy around Limpopo river); Land use and river basin management (e.g. Lake Naivasha) optimise across nexus, rather than maximise one issue at a time integrated, WEL-nexus approach avoids perverse solutions and promotes innovative solutions

6 Framing the policy responses to enable transformation towards ISG Improve resilience to shocks and protect poorest) Manage demand to reflect scarcity (e.g. change food and packaging wastage) Expand quality and quantity of supply (renewable energy, soils, water storage) Joint action by public and private actors and international community 6 Promote use efficiencies (Productive, allocative, WEL / nexus-wide)

7 Roles of the public sector Co-ordination and facilitation (governance involving various stakeholders, in various sectors / levels: e.g. for land in Sub-Saharan African, South African National Planning Committee and water, policy and interest bundling in China) Leadership Regulation and incentive Capacities framework L (legal, regulatory, implementation capacity, Political e.g. for incentives investment in land or renewable energy; appropriate pricing using PES and abolishing natural resource wasting subsidies) Public expenditure (public goods such as technology/nis, infrastructure, benefit sharing, shock facilities)

8 Roles of the private sector Private sector invests increasingly in resource supply: water, renewable energy and land Opportunities / innovation for triple wins : e.g. solar power for the poor On the resource use side, private sector has begun to focus on sustainability: Drivers for sustainable business models include cost-efficiency, securing access to good quality inputs, license to operate, and market access; Different experiences amongst companies, some taking an ecosystem approach (e.g. Coca Cola stewardship, flower companies and PES in Lake Naivasha, Unilever and sustainable agriculture; Levis and cotton farmers, Cargill and ecosystems approach); Innovative partnerships with business for sustainable resource use To challenge companies to do more, and foster learning amongst them

9 Roles across the EU (PCD) (EU institutions and Member States) EU internal policies (Sustainable consumption and supply; Resource Efficient Europe, reforming CAP, reassessing biofuel policies) EU external policies such as trade and investment policies (e.g. partnerships to promote responsible investment in water, renewable energy and land) EU development co-operation (e.g. influence implementation of EU Agenda for Change; renewable energy partnerships using blending; improve transparency around land deals; WEL nexus diagnostic and policy initiative, challenging business to promote an ecosystems approach) EU s role in shaping global governance (enhanced UNEP, SDC and SDGs, ambitious positions on climate change and of course Rio+20)

10 Framing policy responses for ISG

11 Action is particularly needed to Reduce the environmental footprint of consumption to promote inclusive growth without increasing resource use. Promote innovation to increase agricultural productivity to feed more than 9bn people sustainably by 2050 and scale up renewable energy technologies that help to deliver sustainable energy for all by Establish or reform institutions for an integrated approach towards managing resources. Push for inclusive land policy to ensure access to land and water for the poorest and most vulnerable. Price natural resources and services comprehensively and appropriately (e.g. instruments such as payments for ecosystem services, PES), whilst safeguarding the welfare of the poorest.

12 Thank you For more information on ERD 2011/2012: