BENEFITS OF TRANSBOUNDARY COOPERATION IN GEORGIA AND AZERBAIJAN - KURA RIVER BASIN Initial inventory of the potential benefits of cooperative water management Tatiana Efimova, OECD 24 October 2013, Helsinki
The context Azerbaijan and Georgia have shown commitment to implement the principles of the EU Water Framework Directive The accelerating economic development in the recent years puts additional pressure on the environment Transboundary cooperation in the Kura basin remains problematic A bilateral agreement between Azerbaijan and Georgia on the Kura is supposed to improve cooperation considerably
Transboundary water management issues in the Kura river basin Water availability is quite variable The main water management issues in the basin include: Water pollution In recent years, a marked increase in agricultural production and irrigation has led to over-abstraction of groundwater resources Constant growth of the hydropower sector (e.g. in Georgia) Landslides and mudflows (in some areas)
Transboundary cooperation: why is it needed? Transboundary water management issues Transboundary coordination Cooperative action yield specific benefits which could not be obtained otherwise We need a tailored framework for assessing the benefits of transboundary cooperation
Review of existing assessment frameworks 1. The Ecosystem Goods and Services (EGS) Framework It is gaining increasing attention in water policy implementation (e.g. WFD) It aims at linking pressures/impacts, policy actions, improvement of water status and corresponding benefits Pressures/ impacts Policy actions Improvement of water status Changes in the provision of EGS Resulting benefits
Review of existing assessment frameworks 2. Classification of transboundary benefits of coordinated water management Benefit Type Type 1: increasing benefits to the river Type 2: increasing benefits from the river Type 3: reduced costs because of the river Type 4: increasing benefits beyond the river Benefits linked to Improved water quality, river flow characteristics, soil conservation, biodiversity and overall sustainability Improved water resource management for hydropower and agricultural production, flood drought management Policy shift to cooperation and development away from dispute/conflict, improved food and energy security Integration of regional infrastructure, markets and trade Source: Sadoff & Grey, 2002
Review of existing assessment frameworks 3. On-going developments: first suggestions for an alternative framework Benefit type Type 1: the benefits from improved water availability Type 2: the benefits from improved water quality Type 3: the benefits from watershed or the quality of water ecosystems Type 4: the benefits from improved regional security and integration Description of benefits Benefits from cooperation addressing water scarcity issues and result in improved water security and efficient water allocation among sectors e.g. improved quality for outdoor recreation, avoided treatment costs, avoided sedimentation costs, avoided health risks Flood control, storm protection, groundwater recharge Avoided or reduced costs of conflict, improved trade relations and regional integration Source: Working Group composed by UNECE, Government of the Netherlands, SIWI)
The proposed OECD framework: rationale EGS Framework Strengths : Inventory of the services and benefits that humans derive from ecosystems Biodiversity for human well-being Weaknesses The link between water management actions and resulting benefits is not always clear Not tailored to the benefits of TWM Capturing strengths The OECD Framework Captures specific benefits of TWM Explicit links between pressures/impacts, water policy actions and resulting benefits Inventory of EGS Recognizes importance of biodiversity and healthy ecosystems Addressing weaknesses Recent suggestion for a new framework Strengths : Tailored to the benefits of TWM Clearer link between pressures/impacts, water policy actions and resulting benefits Weaknesses At an early stage: it still needs to be developed Overlooked importance per se of biodiversity and healthy ecosystems
The proposed OECD framework Benefit Type Typologies EGS of involved Example of benefits Type 1 : Benefits related to water quantity quality Efficient and equitable water resource allocation + minimum ecological flows Type 2: Benefits from improved water quality All use values related to improved water quality Type 3: Benefits derived from the good functioning of watersheds and aquatic ecosystems Indirect-use values Example from the framework benefits Type 2: Benefits from improved water Provisioning Provisioning services: water supply (secure services supply) This category includes all use values (direct benefits) related to improved water quality, as well as the benefits for the ecosystems. Habitat services: biodiversity Provisioning services: water supply, food (fish) supply Habitat services EGS Type EGS Associated benefits Specification (if needed) Water supply Food supply Cultural services: Habitat recreation and tourism services biodiversity Maintenance of Regulating services: moderation of extreme events, regulation of Cultural and water flows, water purification, amenity erosion prevention services Opportunities for recreation and tourism Increased Reduced health agricultural Clean production drinking risks Increased income water: from reduced nitrates (and other agricultural Reduced treatment activities costs Improved ecosystem Safe functioning drinking water: and integrity Reduced health risks; contaminants safe fish Regeneration and available for consumption increase of fish and Re-installation shellfish stocks of previously disappeared Safe food available species for consumption Surface Regeneration water of recreation existing species and re-installation of mineral pollutants) reduced Toxins, bacteria and other Toxins, bacteria or other contaminants Improved water quality Reduced previously damages to national economies disappeared species and human lives due Safe contact waters: Nitrates and to floods; avoided costs of Improved swimming Phosphorous - treatment (sedimentation) conditions Surface water recreation Toxins, bacteria and other contaminants All recreational uses
The proposed OECD framework Benefit Type EGS involved Example of benefits Type 4: Benefits from improved regional security and integration To be assessed case by case (avoided costs of conflicts; improved trade relationships and regional integration) Type 5: Water managementrelated benefits To be assessed case by case ( TWM more cost-effective measures TWM -> improved ecological status -> reduced management costs for the administration) New category introduced by this project
Inventory of benefits of trans-boundary water management in GE and AZ Potential benefits were inventoried for each major trans-boundary water body Identification of main pressures and impacts Identification of main pressures and impacts Identification of EGS involved Identification of main water uses Identification of the potential benefits of cooperative management
Benefit inventory: some examples Alazani/Ganyh river Alazani-Agrichay aquifer Ktsia/Khrami river Jandari Lake Iori/Gabirri river Kura river
OECD project in the Kura river basin: next steps Assessment of economic benefits of improved transboundary cooperation between Georgia and Azerbaijan It will include suggestions on different development scenarios leading to a positive-sum game of benefits sharing, including benefits for the environment Focus Specific case studies, selected among the major transboundary water bodies