Water shortage and governance what role for the public policy dialogue

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1 Water shortage and governance what role for the public policy dialogue Herbert Oberhänsli Economics & International Relations The CEO Water Mandate at the Fifth World Water Forum Istanbul 16 March 2009

2 From water shortage to food shortage If present trends continue the livelihoods of one third of the world s population will be affected by water scarcity by We could be facing annual losses equivalent to the entire grain crops of India and the US combined. Frank Rijsberman, Director General International Water Management Institute, 2003 UN GC CEO Water Mandate Istanbul 16 March 2009 #2

3 Proliferation of political targets for biofuels United States 30% (2030) Canada 5% (2010) Colombia 25% (2025) Brazil 10% (2020) European Union Up to10% (2020) India 10% (2012) China 5% (2020) Indonesia 10% (2010) South Korea 5% (2010) Japan 10% (2010) Thailand 10% (2012) Only 6 % of total energy used worldwide supplied as biofuels: the equivalent of all food grown Argentina 5% (2010) South Africa 10% (2010) Australia 10% New Zealand 3.4% (2012) globally (both in calories and water withdrawn in agriculture) Source and national publications UN GC CEO Water Mandate Istanbul 16 March 2009 #3

4 Water withdrawals exceeding natural supply: Tragedy of the Commons Source: UN, Water a shared responsibility, New York 2006 UN GC CEO Water Mandate Istanbul 16 March 2009 #4

5 Nestlé no heavyweight, neither in water withdrawals, but concerned and commited Water withdrawals (per USD sales) Nestlé (including for bottled water) Major competitors food Chemical, mining, oil, pulp/paper 1.8 litres of water litres of water litres of water Savings (water per USD sales): withdrawals down 64% over the last 10 years Sources: JP Morgan Watching Water; company annual reports, US Academy of Science UN GC CEO Water Mandate Istanbul 16 March 2009 #5

6 Food: a fragmented and competitive market in bn US$ (2007) in % of world food total All food & non-alcoholic drink, at consumer prices of which: Processed food and drink % % of which: Food manufact. value-added % 20 top grocery retailers, turnover % 20 top food manufacturers, turnover Nestlé (food & bev. only, in US$) % 1.7% Sources: UNIDO; UN WIDER; var., analyses EIR UN GC CEO Water Mandate Istanbul 16 March 2009 #6

7 Water contradictions Floods swamp Iowa town; drinking water near gone Water: a complex substance, needed at the right time, at the right place, in the right form, ready for the right user UN GC CEO Water Mandate Istanbul 16 March 2009 #8

8 Water for agriculture: full cost recovery, private property rights and tradability of water in Oman Aflaj systems in Oman, since 2,500 B.C. Source: UN GC CEO Water Mandate Istanbul 16 March 2009 #9

9 Necessary exemptions from tradability and private property rights: the poor, nature The poor: e.g., in South Africa 6,000 litres of water per family and month, if necessary free of charge. The environment: quotas/caps to make sure enough water remains for rivers, lakes and wetlands. UN GC CEO Water Mandate Istanbul 16 March 2009 #10

10 Available land for rain-fed cultivation and land used 1000 million ha Avg. yield (cereals) in t/hectare (2004) Forests Available agric. land (rain-fed) Rain-fed used 0 Irrigated used Asia Sources: IIASA and FAO, 2001 Africa UN GC CEO Water Mandate Istanbul 16 March 2009 #11 Latin America Europe North America

11 The need for a comprehensive view, with clear responsibilities The problem is that we have no coordinated global [water] management authority in the UN system or the world at large. There is no overall responsibility, accountability or vision for how to address the related problems of agricultural stress and water technology. UN Secretary-General Ban Ki-moon, Davos 29 January 2009 UN GC CEO Water Mandate Istanbul 16 March 2009 #12

12 Thank you! UN GC CEO Water Mandate Istanbul 16 March 2009 #13

13 Water for the poor: the realities UN GC CEO Water Mandate Istanbul 16 March 2009 #14

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