Session 3: Water accounts

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1 1 E-TRAINING ON THE COMPILATION ANDAPPLICATION OF ENVIRONMENTALLY EXTENDED SUPPLY-USE TABLES (EE-SUTS) IN AFRICA March-April 2018 Session 3: Water accounts Dr. Michael Vardon Expert and Advisor Dr. Anand Sookun Expert and Advisor

2 Outline of the Presentation A. Why water accounts? B. Overview of SEEA Water C. The structure of the physical supply and use table D. Data sources E. Methods (water supply, agricultural industries energy and households) F. Communication and use of accounts G. Questions and homework

3 Why water accounts? Lack of integrated water data is a systematic impediment to informed decision making related to the sustainable use of water resources. Data are needed to provide information not just about water quantity, both on the surface and underground, but also about its quality, social and economic relations as well as environmental dimensions (Conclusion from Session 6.4 Data for All of the 5th World Water Forum)

4 African countries have fewer water resource per capita than countries in other continents 2015 World Water Development Report

5 Examples of water shortage

6 Managing water shortages Two aspects to water management Physical amount of water Amount of rainfall Surface and groundwater stocks Management and use of water by people Increase available stocks by building dams Limiting use via, for example, water restrictions, pricing, allocation of water to different industries (e.g. agriculture) Picture source: World Water Development Report /231823E.pdf

7 The hydrological cycle

8 Linking environmental and economic information related to water The System of Environmental- Economic Accounting (SEEA) Combines physical information of water (e.g. from the hydrological cycle) with economic information from the System of National Accounts

9 SEEA Water Part 1 of SEEA Water was adopted by the United Nations Statistical Commission as an interim statistical standard in 2007 Part 2 describes water quality and valuation White cover English version available since 2007, final English version since 2012 Now also available in French, Spanish, Russian and Chinese English: seeaw/seeawaterwebversion.pdf French seeaw/seea_w_fre.pdf

10 Returns Returns Abstraction Returns Precipitation Evapotranspiration Evapotranspiration SEEA Water Atmosphere Overview Inland Water Resource System Stocks and flows Flows covered: Within the environment Between the economy and environment Within the economy Volume and values upstream basins and aquifers outside the territory of reference Sea Rest of the World Economy Abstraction Imports Inflows Collection of precipitation Surface water (reservoirs, lakes, rivers, snow, ice and glaciers) Water collection, treatment and supply Households Natural transfers (e.g. infiltration, seepage, etc.) Groundwater Economy Other Industries (incl. Agriculture) Soil water Sewerage Exports Outflows downstream basins and aquifers outside the territory of reference Sea Rest of the World Economy 10

11 SEEA Water tables 1. Physical supply 2. Physical use 3. Gross and net emissions 4. Emissions by ISIC Hybrid (= monetary and physical) supply 6. Hybrid use 7. Hybrid supply and use 8. Hybrid water supply and sewerage for own use 9. Government accounts for water related collective consumption services (Monetary) 10. National expenditure for waste management (monetary) 11. Financial accounts for waste water management (monetary) 12. Asset account (Physical) + 12 Supplementary tables Note: The structure of the SEEA Water physical supply and use table (PSUT) is slightly different from the one in SEEA Central Framework. SEEA Water shows the use table before the supply table.

12 Key industries for water accounting Water supply industry Sewerage and drainage Agriculture Energy (especially hydroelectric and thermal(e.g. coal) generation Households (sector) Industry classification should be by ISIC Revision 4

13 SEEA Central Framework: water supply table (part 1)

14 SEEA Central Framework: water supply table (part 2)

15 SEEA Central Framework: water use table (part 1)

16 SEEA Central Framework: water use table (part 2)

17 The SEEA Central Framework physical supply and use table A comprehensive table Many rows Not all may be needed (e.g. most countries do not show use of soil water) Columns showing industries (Agriculture, mining, manufacturing, electricity, water supply, sewerage, etc.), households and Rest of World, can be subdivided, e.g. Agriculture can be split by crop or animals type Energy can be split between hydroelectric and other generation types Water supply can be split between urban and rural (which is often for irrigation of agriculture Households can be split by urban and rural, by income level, number of members, etc.

18 Simplified water physical supply and use table (millions m 3 ) Physical supply table Industry Agriculture Mining Energy Water supply Sewerage All other industries Subtotal industry Households Rest of World Environment TOTAL Natural resources Surface water - - Groundwater - - Rainwater tanks - Total natural resources - - Products Natural water Sewerage Total water and sewerage products Return flows To surface water To groundwater* Total return flows TOTAL SUPPLY Physical use table Industry Agriculture Mining Energy Water supply Sewerage All other industries Subtotal industry Households Rest of World Environment TOTAL Natural resources Surface water Groundwater Rainwater tanks Total natural resources Products Return flows Natural water - - Sewerage - - Total water and sewerage products To surface water - - To groundwater* - - Total return flows - - TOTAL USE *Losses in distribution plus unaccounted for water by water supply industry (e.g. from leaky pipes) Source: Michael Vardon, ANU

19 Comparison of simplified table with the SEEA Central Framework table The simplified table omits some of the information in the table shown in the SEEA Central Framework. E.g. it does not show Soil water, sea water or reuse water The splits between abstracted for distribution and own use and between wastewater received from other economic units and own treatment of wastewater Evaporation of abstracted water, transpiration, water incorporated into products All could can be added if needed

20 Key Simplified diagram of physical water Water natural input Water product Sewerage Return flows flows (millions m 3 ) Sewerage Water Supply Agriculture Mining Energy All other Industries Households Water Resources * Note shown is the supply of distributed water and reuse water by mining and manufacturing, 25 GL in total. Source: Michael Vardon, ANU

21 Key Example of diagram of physical water Water natural input Water product Sewerage Return flows flows (millions m 3 ) 10 Sewerage Water Supply Agriculture Mining Energy All other Industries Households Water Resources * Note shown is the supply of distributed water and reuse water by mining and manufacturing, 25 GL in total. Source: Michael Vardon, ANU

22 Example of simplified water physical supply and use table (millions m 3 ) Physical supply table Industry Agriculture Mining Energy Water supply Sewerage All other industries Subtotal industry Households Rest of World Environment TOTAL Natural resources Products Return flows Surface water 3, ,430.0 Groundwater Rainwater tanks Total natural resources 3, ,765.0 Natural water , , ,100.0 Sewerage Total water and sewerage products , , ,300.0 To surface water , , ,290.0 To groundwater* Total return flows , , ,640.0 TOTAL SUPPLY , , , , ,705.0 Physical use table Industry Agriculture Mining Energy Water supply Sewerage All other industries Subtotal industry Households Rest of World Environment TOTAL Natural resources Products Return flows Surface water , , , ,430.0 Groundwater Rainwater tanks Total natural resources , , ,765.0 Natural water ,100.0 Sewerage Total water and sewerage products ,300.0 To surface water 2, ,290.0 To groundwater* Total return flows 2, ,640.0 TOTAL USE , , , , ,705.0 *Losses in distribution plus unaccounted for water by water supply industry (e.g. from leaky pipes) Source: Michael Vardon, ANU

23 Data sources Water supply industry reporting Sewerage and drainage industry reporting Agricultural survey and remote sensing Electricity industry reporting Household survey or census

24 Water supply industry There are probably few water suppliers and each is likely to have an annual report or already provide information to government water departments Liaise closely with government water department to obtain all available information. Licensing information is sometimes available The water supply industry will likely know how much water they abstract from the environment, how much is supplied to customers and how much is unaccounted (including losses in distribution meter errors and water theft) The customer lists can usually be split between households and everything else For everything else you can code to industry In this, start with the big users (agriculture, food and beverage manufacturing, recreation (e.g. football pitches, golf courses)

25 Agriculture Agriculture is one of the largest users of water Liaise closely with government agricultural department to obtain all available information Water use by agriculture can be managed by either the agriculture department or the water department Agricultural surveys will usually have information on the area and types of crops and the number and types of animals on farms This can be used with crop and animal water use coefficients to generate estimates of water use by agriculture Sometimes the surveys may have information on water use and water sources (e.g. irrigated crops, non-irrigated crops) Remotely sensed data can be used to estimate crops and amount of irrigated land Existing country estimates (and more) FAO Aquastat Old School s8376e/s8376e.pdf

26 Energy Energy is one of the largest users of water If there is large scale hydroelectricity it is probably the largest use Thermal generation (e.g. by burning coal) is also a large user Liaise closely with government energy department to obtain all available information Energy suppliers are likely to be few in number and also likely to already report to government Water for hydroelectricity is recorded as a use of natural water resources and immediately returned and shown as a return to the environment For water is used in thermal generation for driving turbines via evaporation and is often stored on sited, cooled and used again. Need to be clear on when and the water is abstracted from, and returned to, the environment Data on production of energy via hydroelectricity available from International Energy Agency

27 Households Households will be one of the largest users of water from the water supply industry The amount of water used by households connected to water supply network will usually be known by the water supply industry For households not connected to the water supply network The number of households not connected will usually be known There may be government or academic estimates of water use by households not connected to the water supply network If there are no estimates then their are a few options. For example, (a) apply the average use of water by households connected to the network to those not connected to the network or (b) use information from a nearby or similar country The sources of water from natural resources (e.g. surface water, groundwater, rainwater tanks) may be available from household surveys or census

28 Monetary water supply and use tables The value of goods and service supplied by the water industry (i.e. natural water) and the sewerage and drainage industry (i.e. sewerage services) should be in the nation accounts So far most countries restrict monetary accounts to this The value of the water abstracted from the natural resources and used in production or for consumption could be calculated by, for example: Cost of abstraction (e.g. labour, value of pipes and pumps, fuel, etc.) Replacement cost

29 Comparison of physical and monetary water use Australia Households All other Industries Electricity Water Supply Manufacturing Mining Agriculture 0% 10% 20% 30% 40% 50% 6

30 Communication of accounts Tables are not enough Figures and graphics Explanatory text highlighting key figures and trends Meetings with key stakeholders Australian Bureau of Statistics, Water Account, Australia. E4294CA E2A6?Opendocument

31 Botswana water accounts Latest published in December org/en/knowledgecenter/botswana-wateraccounting-report Tables, diagrams, figures and explanatory text Tables follow SEEA Water format 4 editions published loads.html

32 Uses of water accounting Input-output modelling Computable general equilibrium modelling Water pricing Water management Water footprints Investment in water supply infrastructure Countries with examples: Australia Botswana Colombia Netherlands

33 Questions

34 Homework After reading Chapter III of SEEA Water please complete the worksheet provided Please follow the instructions provided on the worksheet 34

35 Acknowledgements A large number of people have contributed to the development of water accounting around the world. We would particularly like to thank: Steve May, Stuart Peevor, Illaria Di Matteo, Ricardo Martinez-Lagunes, Michael Nagy, Gan Hong, Jeremy Webb, Bram Edens, Cor Graveland, Ogoposte Batlokwa Pule, Jaap Arntzen, Jayne Godfrey, and Glenn-Marie Lange.

36 THANKS / MERCI

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