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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. An important policy issue is how to harness the combined capacity of small and medium-sized enterprises, which account for 70% of enterprises in most countries, and provide the financing necessary for them to generate efficiencies as a sector (Box 16.4). 16.4 Prioritizing ecosystem services Expansions of all types of energy generation can be planned with an ecosystem perspective. IWRM, supported by systematic environmental flows assessment, is one framework for planning and allocating water at the basin level. The application of an ecosystems approach necessitates the valuation and use of natural infrastructure, supported by tools that include PES, remediation through sustainable dam and reservoir management, and strategic river basin investment. Natural or green infrastructure can complement, augment or replace the services provided by traditional engineered infrastructure, which can enhance cost-effectiveness, risk management and sustainable development. Improved water resources and natural infrastructure in the form of healthy ecosystems can reinforce each other and generate additional benefits in the water–energy–food nexus (Box 16.5). The ongoing degradation of water and land resources in river basins, which threatens energy provision, could potentially be reversed through protection and restoration initiatives, providing resilience for increased climate variability and extreme events (Section 9.3). In terms of manufactured goods, considerable achievements have been made in the design and formulation of products specifically aimed at reducing the water and energy content or consumption of products and appliances The economic value of ecosystems for downstream water users is formally recognized and monetized in PES schemes. These provide farmers with payments or green water credits from downstream water users for good management practices that support and regulate ecosystem services, thereby conserving water and increasing its availability and quality. In the Sarapiqui watershed in Costa Rica, upstream landowners are paid by a hydropower company for forest management 16.5 Natural infrastructure: Wetlands and hydropower in Rwanda Rwanda presents a good example of how natural infrastructure (healthy wetlands) can complement and support built infrastructure (hydropower generation). In the mid-2000s, ‘Rwanda experienced an electricity supply crisis that adversely affected its development prospects. This crisis was spurred in large measure by a steep decline in generation capacity at Ntaruka hydropower station which, along with the downstream Mukungwa station, provided 90 percent of the country’s electricity’. The combined annual power production from Ntaruka and Mukungwa stations was around 120 GWh in 1998 and only 23 GWh (19%) in 2007. ‘Ntaruka’s reduced electricity generation was attributed to a significant drop in the depth of Lake Bulera, which acts as the station’s reservoir. This decline in water levels in turn was precipitated by a combination of factors, including: poor management of the upstream Rugezi Wetlands, the headwaters of the watershed; degradation of the surrounding Rugezi-Bulera-Ruhondo watershed due to human activity; poor maintenance of the station; and reduced precipitation in recent years’. In response, ‘the Government of Rwanda sought to restore the degraded Rugezi-Bulera- Ruhondo watershed by halting on-going drainage activities in the Rugezi Wetlands and banning agricultural and pastoral activities within and along its shores, as well as along the shores of Lakes Bulera and Ruhondo’. To compensate the local population for the subsequent reduction in access to key resources, which adversely affected livelihoods, ‘the Government implemented a suite of agricultural and watershed management measures ... These measures included the construction of erosion control structures; the establishment of a belt of bamboo and Pennisetum grasses around the Rugezi Wetlands; planting of trees on the surrounding hillsides; distribution of improved cookstoves; the promotion of integrated and environmentally sound farming practices; and promotion of income-generating activities such as beekeeping. Today, through protection of the watershed surrounding the Ntaruka hydropower station, the plant has returned to full operational capacity’. Source: UNEP, from Hove et al. (2011, pp. 1–2). WWDR 2014 RESPONSES IN PRACTICE 113 BOxPDF Image | Water and Energy
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