madrid, 26 june 2009 session iii: institutional and ... varela orte… · case studies in mediation...

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Madrid, 26 June 2009 Session III: Institutional and governmental stakeholders MINISTRY OF ECONOMY AND FINANCE OF SPAIN ASIAN DEVELOPMENT BANK WORKSHOP ON IMPROVING WATER SECURITY IN A WORLD OF CHANGING CONDITIONS Water and Agriculture: policies, governance and institutions Consuelo Varela Ortega Department of Agricultural Economics Universidad Politécnica de Madrid, Spain

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Page 1: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Madrid, 26 June 2009

Session III: Institutional and governmental stakeho lders

MINISTRY OF ECONOMY AND FINANCE OF SPAINASIAN DEVELOPMENT BANK

WORKSHOP ON IMPROVING WATER SECURITY IN A WORLD OF CHANGING CONDITIONS

Water and Agriculture:policies, governance and institutions

Consuelo Varela Ortega

Department of Agricultural Economics

Universidad Politécnica de Madrid, Spain

Page 2: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Contents

1. Overview: water resources and agriculture

2. The EU water research projects

3. Water and agricultural policies

2

4. The role of stakeholders: Down-scaling to the Regional perspective

5. Concluding reflections

Page 3: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Water resources in an international context

EU Research Projects � water and agriculture, climate change

WORLD BANK : Modernization of water resources management in Mexico: PROMMA)- Mexico, (2001)

IDB (Inter -American Development Bank ): National Irrigation

3

IDB (Inter -American Development Bank ): National Irrigation Development Plan of Jamaica (JA-0106). Institutional and Policy component. (2002- 2003)

FAO: Utilization of Water Resources for Agriculture: Analysis of the Current Regime and Policy in Syria. Assistance in institutional strengthening and agricultural policy (GCP/SYR/006/ITA) (2001-2002)

Page 4: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

1. CROSS-COMPLIANCE (Facilitating the CAP reform: compliance and competitiveness of European agriculture) (2005-2008). STREP, 6PM

www.cross-compliance-fp6.eu/

LINKING WATER AND AGRICULTURAL POLICIES: EU RESEARC H PROJECTS

2. NEWATER (New Approaches to Adaptive Water Management under Uncertainty) (2005-2009). IP, 6FP

www.newater.info

3. SCENES (Water Scenarios for Europe and for Neighbouring States) (2007-2011). IP, 6FP

http://www.environment.fi/syke/scenes

5. MEDPRO (Prospective Analysis for the Mediterranean Region) (2010-2013). 7FP, SSH

4. MEDIATION (Methodology for Effective Decision-making on Impacts and Adaptation to Climate Change) (2010-2013). 7FP, Environment

www.mediation-project.eu

Page 5: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Basins in the EU project NewaterNeWater

Page 6: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Basins in the SCENES project

BALTIC REGION

PILOT AREAS-Narew (Poland)-Lake Peipsi (Estonia)

LOW DANUBE REGION

MEDITERRANEAN REGION

PILOT AREAS-Guadiana (Spain)-Candelaro (Italia)-Seyhan (Turkey)

BLACK SEA REGION

PILOT AREAS-Lower Don (Russia)-Lower Dnieper (Ukraine)

PILOT AREAS

-Tisza (Hungary-Ukraine)

-Danube Delta (RU/UA/BG)

Page 7: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Case studies in Mediation

Main biogeographic regions of

Europe (EEA member countries)

Key past and projected impacts and

effects on sectors for the main

biogeographic regions of Europe

Source: after EEA, 2008.

From based on Swart 2010Southern Europe, covering the Mediterranean

Water management (droughts), irrigation

agriculture, health (heat waves), tourism

Multi-level, multi-sector water resource

management

Page 8: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Water and agriculture: an international perspective (IWMI, 2006)

8

Page 9: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

In the new context of increasing water-scarcity…

Irrigation water resources management: new trends

� New objectives of water policies � efficient and sustainable water management

� From water supply enhancement (engineering solutions )

Increasing costs??

to water demand management (socio-economic solutions )

Increasing costs??

Decreasing farm income returns??

Environmental damage??

Page 10: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Water resources

RENEWABLE RESOURCES(m3/person/year)

� In the WORLD � 6,750

� In EUROPE � 4,560

Areas of physical and economic water scarcity

10

Source: Comprehensive Assessment of Water Management in Agriculture, 2007

� In EUROPE � 4,560

� In SPAIN � 2,829

Heterogeneous distribution (spatial and temporal) of water resources and high precipitation variability

Only 10% of natural water resources are available

Little or no water scarcity

Physical water scarcity

Economic water scarcity No estimatedApproaching physical water scarcity

Page 11: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Irrigation Agriculture in the world

11

Page 12: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

% Agriculture water withdrawals as percentage of renewable water resources

Water and Agriculture

MEDITERRANEAN REGION (Agriculture represents a 63%

of total water demand)

� 42% in the North

� 81% in the South and East

12

Category Percentage

Source: FAO, 2002

� 81% in the South and East

Page 13: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

% Agriculture water withdrawals as percentage of renewable water resources

MEDITERRANEAN REGION (Agriculture represents a 63%

of total water demand)

� 42% in the North

� 81% in the South and East

Water and Agriculture

13

Category Percentage

Source: FAO, 2002

� 81% in the South and East

2000 2025

Source: Plan Bleu, 2005WATER EXPLOITATION INDEX

Page 14: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Aridity map in Spain

14

Fuente: MARM (2006)

Page 15: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Irrigation Agriculture � 80% ���� 70% of w r

• Extends over 15% of all Arable Land (3.6 M ha)

Water and Agriculture

15

LEGEND

SurfaceGroundwaterMix

68%28%4%

• 60 % of total A. Production

• 80 % of Total Farm exports

Source: MMA (PHN, 2002), MAPA (2006)

Page 16: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Gravity 35%Drip 42%TECHNOLOGICAL CHANGE

YEAR 2005

16

WATER TARIFFS:82 % surface13% volumetric5 % two-part

Sprinkler 23%

INSTITUTIONAL CHANGE?

Page 17: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Sustainable & competitive Agriculture

�Direct aid payments decoupled from production

Sustainable use of water resources & Good ecological status of all waters (2015)

� River Basin Organization as management unit

AGRICULTURAL POLICIES

CAP Reform 2003,2010

WATER POLICIES

Water Framework Directive, 2000

The EU policy context: water and agricultural polic ies

CAP ‘HEALTH CHECK’2010…

•Full decoupling � SFP•Reinforce and simplify Cross Com

17

� Single farm payment , modulation� Cross-compliance � direct payments are subject to compliance with environmental regulations� Rural Development Programs

management unit� Planning and integrated management of all water resources � RBMP� Cost recovery , polluter pays principle� Transparency and public participation

IRRIGATED AGRICULTURE

MultifunctionalCompetitive

Environmentally sustainableAdaptable to new challenges (i.e. climate change)

•Water protection &management•Climate change

Page 18: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Complying with water and agricultural policies:

• Effects on water ecosystems? Land & farm changes?

• Are they socially and financially sustainable?

• Resilience and buffering capacity of the system?

GLOBAL POLICIES Dow

n-scaling to the regions

18

Addressing institutional and societal responses :

• What are the effects on rural livelihoods?

• Adaptive capacity of farmers?

• Adapting management and governance structures?

LOCAL ACTIONS

scaling to the regions

Page 19: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Fieldwork

Policy Scenarios

STAKEHOLDER PARTICIPATION

Baseline Analysis

Water use

Available Water

ECONOMIC MODEL

HYDROLOGY MODEL

WEAP

Aquifer recharge/

wetland recovery

Environmental impacts

BA

SIN

LE

VE

L

Decision making

context

Policy Scenarios

Socio-economic and

agronomic Impacts

Farmers’ strategiesFarm

IncomePublic expenditure AGRONOMIC

MODEL

AQUACROP

Crop Yields

Technologies

VULNERABILITY

ANALYSIS- CART

BAYESIAN

NETWORKS

DSS

FAR

M L

EV

EL

Page 20: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

STAKEHOLDER PARTICIPATORY PROCESSES:

NeWater and SCENES Projects

ECONOMIC, HYDROLOGY, AGRONOMIC MODELS:

Joint development

between scientists and

stakeholders

ECONOMIC, HYDROLOGY, AGRONOMIC MODELS:

Joint development

between scientists and

stakeholders

20

stakeholdersstakeholders

Page 21: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Fieldwork

Policy Scenarios

STAKEHOLDER PARTICIPATION

Baseline Analysis

Water use

Available Water

ECONOMIC MODEL

HYDROLOGY MODEL

WEAP

Aquifer recharge/

wetland recovery

Environmental impacts

BA

SIN

LE

VE

L

Assessment of

impacts and

vulnerability

Policy Scenarios

Socio-economic and

agronomic Impacts

Farmers’ strategiesFarm

IncomePublic expenditure AGRONOMIC

MODEL

AQUACROP

Crop Yields

Technologies

VULNERABILITY

ANALYSIS- CART

BAYESIAN

NETWORKS

DSS

FAR

M L

EV

EL

Socio-economic

evaluation of

adaptation strategies

Page 22: Madrid, 26 June 2009 Session III: Institutional and ... VARELA ORTE… · Case studies in Mediation Main ... social and economic viability efficiency and equity considerations 22

Some reflections…

• Looking at IAWRM� consider technical, social and institutional factors

• International vision is key for addressing the world water problems �similarities in many world regions, learning process

• Balanced trade-off between conserving water resources and maintain social and economic viability � efficiency and equity considerations

22

• Spatial and temporal scale � water is site-specific and context specific• Need to downscale � impacts & enforcement of policy decisions

vary across regions and local communities

• Water management , water institutions and w. governance are key �Public participation, stakeholders, credibility, legitimacy

• Participatory integrated modeling are valuable tools for policy decision relating water, agriculture and water-related ecosystems