Water resources allocation : sharing risks and opportunities.

146 Pages·2015·1.77 MB·English

by  OECD

OECD Studies on Water O
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Water Resources Allocation D
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ShARing RiSkS AnD OppORtunitiES ie OECD Studies on Water
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Contents W
Executive summary at Water Resources Allocation
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Chapter 1. Re-allocating in a water scarce world
Chapter 2. A framework for water allocation
ShARing RiSkS AnD OppORtunitiES
Chapter 3. The current water allocation landscape
Chapter 4. Reforming water allocation regimes
Chapter 5. A “health check” for water resources allocation
Glossary
Annex A. Questionnaire for the OECD project on water resources allocation
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Consult this publication on line at http://dx.doi.org/10.1787/9789264229631-en. it
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97 2015 04 1 p

OECD Studies on Water
Water Resources
Allocation
SHARING RISKS AND OPPORTUNITIES
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Pleasecitethispublicationas:
OECD(2015),WaterResourcesAllocation:SharingRisksandOpportunities,OECDStudiesonWater,
OECDPublishing,Paris.
http://dx.doi.org/10.1787/9789264229631-en
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FOREWORD
Foreword
T
he intensifying competition for water resources is widely documented.The OECD Environmental
Outlook to2050 highlights that water resources are already over-used or over-allocated in many
places,withglobaldemandexpectedtoincreaseby55%between2000andmid-century.Thesituation
iscompoundedbyclimatechange,withimpactsonwaterexpectedtobecomemorepronouncedinthe
comingdecades.Thesepressureshavealreadymadewaterallocationanurgentissueinanumberof
countriesandonethatisrisingontheagendainmanyothers.Withinthiscontext,theOECDundertook
work on water resources allocation to strengthen the evidence base and develop policy guidance to
improvethedesignofallocationregimesandmanagethechallengesofreform.
ThisreportisanoutputoftheOECDEnvironmentDirectorate,undertheleadershipofDirector
Simon Upton. The project co-ordinator and lead author of the report is Kathleen Dominique. The
HeadoftheWaterUnitintheEnvironmentDirectorate,XavierLeflaive,providedsubstantiveinputs
and advice. The OECD Secretariat project team, including Kun Wook Kim and Ignacio Deregibus,
providedsubstantiveinputsandanalysis,inparticularinthedevelopmentoftheSurveyofWater
Resources Allocation and the case studies of reform. The project was undertaken in collaboration
with the Stockholm International Water Institute (SIWI) which provided in-kind support and
expertise.TheauthorisparticularlygratefultoJohnJoyce,ChiefEconomistatSIWI,forhissustained
engagementandvaluableinsights.
CasestudiesonthereformofwaterallocationregimeswerepreparedbytheOECDSecretariat
projectteam,aswellasIanBarkerofWaterPolicyInternational,ChibesaPensuloandJohannaSjödin
of SIWI, Barbara Schreiner of Pegasys Strategy and Development, and Gavin Quibell, independent
consultant.AbackgroundpaperpreparedProfessorMikeYoung,ChairinWaterandEnvironmental
PolicyattheUniversityofAdelaideprovidedasolidfoundationforthework.Thefinancialandin-kind
contributionsofthegovernmentoftheNetherlandsandthegovernmentofKoreahelpedtomakethis
workpossibleandaregreatlyappreciated.
The project benefitted from the discussions at two international workshops supported by the
Netherlands. The first, held in November2012 in Wageningen, helped to frame the project. The
second,heldinMay2014inTheHague,focusedontheanalyticalframeworkandthepolicyguidance
reflectedinthe“HealthCheck”forWaterResourcesAllocation.
Theauthorisalsogratefultocolleaguesandexpertswhoprovidedvaluablecomments,including
Simon Upton, Anthony Cox, Jane Ellis, Guillaume Gruère, Jesus Anton, Julien Hardelin and
DelphineClavreul (OECD Secretariat) and prominent water experts Ian Barker, of Water Policy
International,JohnMatthews,oftheAllianceforGlobalWaterAdaptation,andProfessorMikeYoung.
ThecontributionsofthedelegatesoftheOECDWorkingPartyonBiodiversity,Water,andEcosystems
were instrumental in building a solid evidence basis for the analysis and in shaping the
“HealthCheck”. Keen editorial guidance from JanineTreves and impeccable administrative support
fromSamaAlTaherCucciarealsogratefullyacknowledged.
WATERRESOURCESALLOCATION:SHARINGRISKSANDOPPORTUNITIES©OECD2015 3

TABLEOFCONTENTS
Table of contents
Preface .................................................................... 9
Acronyms ................................................................. 11
Executivesummary......................................................... 13
Chapter1.Re-allocatingwaterinawaterscarceworld........................... 17
Keymessages.......................................................... 18
Growingpressuresonwaterallocationregimes ............................. 20
Changingpatternsofdemand ............................................ 21
Climatechangeimpactsonfreshwater..................................... 23
Deterioratingwaterquality............................................... 25
Wateruseefficiencygainsandchangesinratesofwaterconsumption......... 25
Shiftingsocialpreferences ............................................... 28
Conclusion............................................................. 30
Notes.................................................................. 30
References ............................................................. 30
Chapter2.Aframeworkforwaterallocation.................................... 33
Keymessages.......................................................... 34
Policyobjectivesofallocationregimes ..................................... 35
Water:Aresourcewithpublicandprivategoodcharacteristics................ 38
Legalstatusofwaterandclaimstousewater............................... 41
Transboundaryconsiderations............................................ 43
Policyinstrumentsandmechanismsforwaterallocation..................... 44
Conclusion............................................................. 53
Notes.................................................................. 54
References ............................................................. 54
Chapter3.Thecurrentwaterallocationlandscape............................... 57
Keymessages.......................................................... 58
Examiningthesurveyresultsincontext.................................... 61
Reformingwaterallocationregimes ....................................... 61
Generalcontextualinformationforallocation............................... 62
Understandingthephysicalfeaturesofthewaterresourceanddemand
profile................................................................. 65
Definingtheavailable(“allocable”)waterresourcepool....................... 69
Howusersaccesswaterandhowthisworksinpractice ...................... 72
Waterabstractioncharges................................................ 84
WATERRESOURCESALLOCATION:SHARINGRISKSANDOPPORTUNITIES©OECD2015 5
TABLEOFCONTENTS
Monitoringandenforcementofwaterwithdrawalsandallocationrules........ 86
SummaryofkeyfindingsfromtheSurveyofWaterResourcesAllocation ....... 87
Notes.................................................................. 89
References ............................................................. 89
Chapter4.Reformingwaterallocationregimes.................................. 91
Keymessages.......................................................... 92
Whyreform?Buildingthecaseforwaterallocationreform ................... 93
Policyoptionsappraisalforwaterallocationreform.......................... 100
Thewaterallocationreformprocess....................................... 105
Assessmentofwaterallocationreforms.................................... 111
Conclusion............................................................. 113
Notes.................................................................. 114
References ............................................................. 115
Chapter5.A“HealthCheck”forWaterResourcesAllocation...................... 117
Keymessages.......................................................... 118
Systemlevelelementsofawaterallocationregime.......................... 121
Userlevelelementsofawaterallocationregime ............................ 125
Notes.................................................................. 127
References ............................................................. 127
Glossary................................................................... 129
AnnexA.QuestionnairefortheOECDprojectonwaterresourcesallocation........ 131
Tables
1.1. Trendsaffectingwaterallocationregimes............................... 21
2.1. Generalpolicyobjectivesofwaterallocationregimes..................... 38
2.2. Waterasapublicandprivategood..................................... 40
2.3. Typesofpropertyownershipsystems................................... 42
2.4. Descriptionofkeysystemlevelelementsofawaterallocationregime ...... 47
2.5. Descriptionofkeyuserlevelelementsofawaterallocationregime......... 48
2.6. Frameworkforwaterallocationregimes ................................ 52
3.1. Examplesofwaterallocationregimes .................................. 60
3.2. Countrieswithrecentorongoingwaterallocationreforms................ 62
3.3. Examplesoflegalbasis/doctrineappliedtowaterresources ............... 64
3.4. Countriesrecentlyassessingwaterscarcity ............................. 65
3.5. Examplesofperiodoftimewaterentitlementsaregrantedfor............. 76
3.6. Summaryofvariousconditionsontrade,leaseortransfer
ofwaterentitlements ................................................ 78
3.7. Summaryofexampleswherewaterentitlementscanbeused
asafinancialinstrument............................................. 79
3.8. ExamplesofwaterabstractionchargesinselectOECDcountries ........... 86
3.9. SummaryofmainfindingsoftheSurveyofWaterResourcesAllocation..... 88
Figures
1.1. Globalwaterdemand,baselinescenariofrom2000-50.................... 22
1.2. FreshwaterabstractionsinOECDcountries.............................. 22
1.3. HistoricaltrendsinrainfallforJarrahdale............................... 24
6 WATERRESOURCESALLOCATION:SHARINGRISKSANDOPPORTUNITIES©OECD2015
TABLEOFCONTENTS
1.4. HistoricaltrendsinstreamflowintoStirlingDam ........................ 24
1.5. Effectofreductionofstreaminflowontheamountofwateravailable
forconsumptiveuse ................................................. 25
1.6. Nitrogeneffluentsfromwastewater:2000to2050........................ 26
1.7. Projectedshiftsinwater-intensityofenergyproduction................... 28
2.1. Systemlevelelementsofawaterallocationregime ...................... 51
2.2. Userlevelelementsofawaterallocationregime......................... 52
3.1. Driversofrecentandongoingreformsofwaterallocationregimes ......... 62
3.2. Ownershipofgroundwaterresources................................... 63
3.3. Ownershipofsurfacewaterresources.................................. 63
3.4. PercentageofresponsesindicatingarolefortheMinistryofEnvironment... 64
3.5. Percentageofresponsesindicatingaroleforabasinauthority............. 65
3.6. Proportionofwaterallocationexamplesbycurrentstatusofwatersystems. 66
3.7. Degreeofregulationofwatersystem................................... 67
3.8. Proportionofwaterallocationexamplesaccordingtodominanttype
ofwateruse,percategory............................................. 68
3.9. Proportionofwaterallocationexamplesindicatingsignificant
non-consumptiveuse,bytype......................................... 68
3.10. Proportionofexamplesaccordingtotypeoflimitonwaterabstraction
(ifany) ............................................................. 69
3.11. Proportionofexamplesthatdefinedenvironmentalflows................. 70
3.12. Proportiontakingfreshwaterbiodiversityintoaccountinthedefinition
ofe-flows........................................................... 71
3.13. Proportiontakingterrestrialbiodiversityintoaccount .................... 71
3.14. Proportionofwaterallocationexamplestakingintoaccountvariousfactors
inthedefinitionoftheavailableresourcepool........................... 71
3.15. Proportionofwaterallocationregimeswithlegallydefinedprivate
entitlements........................................................ 72
3.16. Numberofwaterallocationexamplesbytypeofentitlement
(individual,collective)................................................ 73
3.17. Natureofwaterusers’entitlements.................................... 74
3.18. Periodoftimewaterentitlementgrantedfor ............................ 75
3.19. Proportionofwaterallocationexamplespecifyingreturnflowobligations... 76
3.20. Consequencesofnon-useofwaterentitlements......................... 77
3.21. Proportionofallocationexamplesthatallowsomeformoftrade,
leaseortransferofwaterentitlements ................................. 77
3.22. Pre-requisitestograntnewwaterentitlementsorexpandexistingones..... 80
3.23. Sequenceofpriorityusesinwaterallocation............................ 82
3.24. Proportionofwaterallocationexampleswithanabstractioncharge........ 85
3.25. Proportionofwaterallocationexamplesreflectingwaterscarcity
inabstractioncharge................................................. 85
3.26. Proportionofallocationregimesmonitoringwaterwithdrawals............ 87
5.1. Waterscarcityspectrum.............................................. 120
WATERRESOURCESALLOCATION:SHARINGRISKSANDOPPORTUNITIES©OECD2015 7
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