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and was a driving factor behind the 2007–2008 spike in world commodity prices. As biofuels also require water for their processing stages, the water requirements of biofuels produced from irrigated crops can be much larger than for fossil fuels. Energy subsidies allowing farmers to pump aquifers at unsustainable rates of extraction have led to the depletion of groundwater reserves. Applying energy efficiency measures at the farm and at all subsequent stages along the agrifood chain can bring direct savings, through technological and behavioural changes, or indirect savings, through co-benefits derived from the adoption of agro-ecological farming practices. Knowledge-based precision irrigation can provide flexible, reliable and efficient water application, which can be complemented by deficit irrigation and wastewater reuse. Many rapidly growing cities in developing countries already face problems related to water and energy and have limited capacity to respond. As energy cost is usually the greatest expenditure for water and wastewater utilities, audits to identify and reduce water and energy losses and enhance efficiency can result in substantial energy and financial savings. The future water and energy consumption of a new or an expanding city can be reduced during the early stages of urban planning through the development of compact settlements and investment in systems for integrated urban water management. Such systems and practices include the conservation of water sources, the use of multiple water sources – including rainwater harvesting, stormwater management and wastewater reuse – and the treatment of water to the quality needed for its use rather than treating all water to a potable standard. The chemically bound energy in wastewater can be used for domestic cooking and heating, as fuel for vehicles and power plants, or for operating the treatment plant itself. This biogas replaces fossil fuels, reduces the amount of sludge to be disposed of and achieves financial savings for the plant. Industry seeks both water and energy efficiency though the two are not always compatible, and though a programme of water and energy efficiency can diverge from industry’s primary focus: to secure water and energy at the lowest prices. Individually and together water and energy efficiency involve varied trade-offs, which frequently involve short-term cost increases against long-term savings, the balance between water and energy use, and a compromise with other factors such as labour, transportation, raw material costs and market location. Large companies and multinationals, particularly in the food and beverage sector, have been engaged for some time in improving water and energy efficiencies. Such companies see the value of efficiencies in both monetary and societal terms. Small and medium-sized enterprises (with 20 or fewer employees) comprise more than 70% of enterprises in most economies, and although as a group they have the potential for making a significant impact on water and energy efficiencies, they have fewer resources and are commonly in need of equity capital to do so. The availability of adequate quantities of water, of sufficient quality, depends on healthy ecosystems and can be considered an ecosystem service. The maintenance of environmental flows enables this and other ecosystem services that are fundamental to sustainable economic growth and human well-being. Ecosystem services are being compromised worldwide, and energy production is one of the drivers of this process. Natural or green infrastructure can complement, augment or replace the services provided by traditional engineered infrastructure, creating additional benefits in terms of cost-effectiveness, risk management and sustainable development overall. The economic value of ecosystems for downstream water users is formally recognized and monetized in payments for environmental services schemes, in which downstream users provide farmers with payments or green water credits for good management practices that support and regulate ecosystem services, thereby conserving water and preserving its availability and quality. Regional priorities The expansion of hydropower as a key source of renewable energy is a critical issue across nearly all of the world’s regions due to concerns of growing conflicts between various interests over limited water resources. In Europe and North America, water scarcity, hydrological variability and the impacts of climate change on water availability and energy production are increasingly recognized as critical – and related – issues. Targets set to increase the share of renewable energies have led to renewed interest in developing pumped storage while part of the region – notably Central Asia and South- Eastern Europe – are still developing new hydropower capacity, not always compatibly with other water uses. Uncertainties persist over the potential risks to water quality, human health and long-term environmental sustainability from the development of unconventional sources of gas (‘fracking’) and oil (‘tar sands’), both of which require large quantities of water. WWDR 2014 5PDF Image | Water and Energy
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