The document discusses the water-food-energy nexus and the implications for investment in the water sector. It notes that water, food and energy production are closely interlinked, with increasing competition for freshwater resources. This poses challenges for development that are exacerbated by climate change. To address these challenges, investments in water supply, sanitation and related areas will need to expand. However, monitoring investments and results in the water sector is complex given its cross-sector nature and involvement of multiple stakeholders. Moving forward, an effective framework for monitoring investments and results can help improve development in the water sector.
1. Water-Food-Energy Nexus in a changing world:
Implication on investment in the water sector
Hongpeng Liu
Chief, Energy Security and Water Resources Section
Environment and Development Division
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
2. Outline of presentations
Linkages between Water-Food-Energy
Some data about Water, Food & Energy
Challenges
Address the challenges: Investment
implications in water sector
Monitoring of Investments and Results
Moving forward
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
4. Some data – Water, Food & Energy
80% fresh water in Asia used for agriculture
50% of cost of delivering urban water for energy
Huge amount of water consumed for power
generation and cooling
Water for bio-fuels competes with water for
agriculture
Crops for biofuels competes with food from
agriculture
Energy production accounts for about 30% water
withdrawals in Europe & 40% in US
Energy demand is projected to rise by 40 to 50% for
Asia by 2030, big implications on water
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
5. Water for energy: primary fuels
Raw Materials Transformation Del. to Customer
Oil
Traditional Oil
3-7 l/GJ Oil Refining
Enhanced Oil Recovery 25-65 l/GJ
50-9000 l/GJ
Oil Sands
70-1800 l/GJ
Delivery of
Biofuels Ethanol Natural Gas and
Corn
9000-100.000 l/GJ
47-50 l/GJ Liquid Fuels to
Biodiesel
Soy 14 l/GJ
Customer
50000-270000 l/GJ involves only
Sugar
N/A small amounts of
water
Coal Coal to liquids
5-70 l/GJ 140-220 l/GJ
Gas
Traditional Gas Natural Gas
Very small amount Processing
Shale Gas 7l/GJ
36-54 l/GJ
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
6. Water for energy: electricity generation
Raw Materials Transformation Del. to Customer
Thermoel. Fuels
Coal Thermoelectric
20-270 l/MWh
Oil & Natural Gas
Generation
Wide variance (closed loop)
Uranium 720-2700 l/MWh
170-570 l/MWh
Delivery to
Evaporation Loss Customer through
Hydroelectric
Average: 17.000 l/MWh
electric grid
involves very little
Geothermal 5300 l/MWh
water
Concentrating Solar: consumption
2800-3500 l/MWh
Solar Photovoltaic:
Minimal
Wind Wind
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
7. Energy for water: supply & services
Raw Materials Transformation Del. to Customer
Survace Water
0-2400 kWh/million l Treatment to Drinking
Water Standards
High Quality Groundw.
26 kWh/million l
Brakish Groundw. ~290kWh/million l
Desalination
Groundwater 300-1400 kWh/million l
37 meters Seawater Desalination
140 kWh/million l 3600-4500 kWh/million l
122 meters
530 kWh/million l
Municipal Wastewater Treatment
Wastewater ~ 650 kWh/million l
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
8. Water for food
a kilogram of tomatoes requires 160 liters
of water (Water Footprint Network)
Meat – 30,000 – 70,000 liters per kg
Sugarcane – 250 tons per ton of cane
Chocolate - 24,000 liters per kg (Ghana)
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
9. Challenges
Multiple Challenges in water sector
Increasing water scarcity threat, High water utilization, Deteriorating
water quality, natural disaster, ecosystem changes, cost recovery and
performance management remain major challenges to improving
sanitation etc
Climate change – exacerbate these challenges
Populations & economic growth
Agricultural sector & crop production decline
Multiple competition of freshwater in developing countries
Growing interdependency of water, food & energy
Water – new factor for food & energy security; central
element in international relations (bilateral & multilateral)
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
10. Address the challenges: Investment
implications in water sector
Areas
Water Supply and Wastewater Service
Environmental Services and System Integrators
Component Manufacturers and Solution Providers
Sanitation
Traditional investment
Gov budget, aid, loans, equity, PPPs etc.
New trends
Specialized infrastructure and water funds
More tailored local currency lending strategies
Securitization and second market trading
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
11. Monitoring of Investments and
Results (MIR) in Water Sector
MIR, the 4th of 5 Key Result Areas of APWF
APWF an outcome of the 3WWF in Tokyo, March
2003, launched at the 4WWF in Mexico, March 2006
1st MIR was reported to the 1st APWS, Beppu,
Japan, Dec 2007
To provide an indication of the improvement
made in the water sector in ensuring socio-
economic development
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
12. Monitoring of Investments and
Results (MIR) in Water Sector
Very complex
Cross-sector
Involving public/private sectors and civil societies
Within the public sectors
The various ministries and departments
Federal, provincial/states and local levels
in a continuing worsening and challenged environment of
pollution/urbanization, multiple global crisis and climate
change impacts
Different levels of development will influence
the different investments expanded for the
various utilities and infrastructures as indicated
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
13. Differences on Infrastructure and Utility Allocation,
circa 2000 between Japan and Malaysia
Shares of Development Allocation for Infrastructure and Utilities
60
50 48.54
40 38.4
30
%
27.01
20.8 Malaysia
20 17.6 Japan
8.8 9.6
10 7.65 7.87
2.96 3.2 3.05 2.89
1.6
0
Sources: Japan expenditure for 2000 and 2001
Budget Allocation for Malaysia, 8th 5year plan (1996-2000)
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
14. Moving Forward
Recognize MIR as an effective tool
Develop a framework for MIR
Information exchange
Follow up activities towards the 2nd APWS
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011
15. THANK YOU
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011