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and in Europe, and the development of oil (tar) sands in Canada (Sections 3.2.1, 10.5). Institutions involved in policy formulation (e.g. ministries, planning commissions, committees, local government bodies) must be mindful of the water–energy nexus and incorporate it into their planning and decision-making systems. Integrating water and energy into decisions is easier said than done. It will take different forms in different countries, at different administrative levels in each country, but it is important to make some progress in this direction. Where river basin organizations (RBOs) exist, for instance, it is sensible to include representatives from energy, power and water communities in their Research into how much of a reduction in energy demand can be achieved from increased water efficiency and vice versa would support policy-makers and investors in making more resource efficient strategies and investment choices stakeholder fora – some RBOs even use the terminology ‘parliaments’ to denote a style of debate and resolution. The collaboration on resource planning approach was recognized some years ago in a key report of the USA’s Department of Energy: Collaboration on energy and water resource planning is needed among federal, regional, and state agencies as well as with industry and other stakeholders. In most regions, energy planning and water planning are done separately. The lack of integrated energy and water planning and management has already impacted energy production in many basins and regions across the country... Mechanisms, such as regional natural resources planning groups, are needed to foster collaboration between stakeholders and regional and state water and energy planning, management, and regulatory groups and agencies. These types of collaborative efforts are needed to ensure proper evaluation and valuation of water resources for all needs, including energy development and generation (USA DOE, 2006, p. 11). Institutional capacity development can play an important role in fostering interdisciplinary and interministerial approaches that support the integration of interdependencies in decision-making through knowledge and technology transfers between different governmental levels and sectors, and through the exchange of experiences. The Strategic Environmental Assessment33 produced by the Mekong River Commission exemplifies an integrated approach to water and energy in the context of a major transboundary river basin. This assessment considers the interdependencies between energy generation and the availability of water, and the impacts of alternative policies for energy and water resource development and management on ecosystems, social systems and economic development over a 15-year perspective (MRC, 2009). For major infrastructure, integrated planning and the joint design of programmes and investments between energy and water experts and managers may be appropriate. Sharing data for modelling, and agreeing on common assumptions, is clearly important. There is a role for collaborative resource planning, identifying synergies and optimizing and negotiating trade-offs. Some of these factors can be mediated in local planning decisions. All such actions would be easier with a better mutual understanding of the economic gains to be had from collaboration and cooperation between the two domains. With an annual investment of US$198 billion globally on average over the next 40 years, water use can be made more efficient, enabling increased agricultural, biofuel and industrial production (UNEP, 2011b). Investing $170 billion annually in energy efficiency worldwide could produce energy savings of up to $900 billion per year (SE4ALL, 2012), and each additional $1 spent on energy efficiency in electrical equipment, appliances and buildings avoids more than $2, on average, in energy supply investments (US EIA, 2010a). Research into how much of a reduction in energy demand can be achieved from increased water efficiency and vice versa would support policy-makers and investors in making more resource efficient strategies and investment choices. For example, water decoupling (i.e. using less water 33 General guidance on the Strategic Environmental Assessment (SEA) of plans and programmes is provided by the Protocol on the SEA to the Convention on Environmental Impact Assessment in a Transboundary Context (Espoo Convention) (UNECE, 2011b). 104 CHAPTER 15 RESPONSES: FOSTERING SYNERGIES AND MANAGING TRADE-OFFSPDF Image | Water and Energy
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