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Water Scarcity and Food Security: Challenges, Scenarios, and Policy Responses Mark W. Rosegrant Director Environment and Production Technology Division Water Policy for Food Security: A Global Conference World Food Center University of California-Davis October 5-6, 2015

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Page 1: Mark Rosegrant, IFPRI

Water Scarcity and Food Security: Challenges, Scenarios, and Policy

Responses

Mark W. RosegrantDirector

Environment and Production Technology Division

Water Policy for Food Security: A Global ConferenceWorld Food Center

University of California-DavisOctober 5-6, 2015

Page 2: Mark Rosegrant, IFPRI

Outline Challenges for Water and Food Security

Scenario Modeling Methodology

Alternative Food and Water Scenarios to 2050

Conclusions: Policies for Water and Food Security

Page 3: Mark Rosegrant, IFPRI

Challenges for Water and Food Security

Page 4: Mark Rosegrant, IFPRI

www.ifpri.org

Increasing Population and Demographic Shifts

World population (billions)

Source: Data from UN 2011

Population change by region, 2010-2100 (millions)

Larger and more urban population will demand more and better food

0

2

4

6

8

10

1950 1970 1990 2010 2030 2050

Total

Rural

Urban

9.3 billion

Source: UN 2011

Africa: Youthful

Asia & Europe: Ageing

Page 5: Mark Rosegrant, IFPRI

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0

10

20

30

40

50OECD

Developing countries

Rising Incomes and Demand and Diet Changes

0

2

4

6

8

10

12

14

2000 2010 2020 2030

World

Developing Countries

Source: OECD-FAO 2012

GDP per capita $US (‘000s)

Source: ERS-USDA 2012

Change in consumption of agric. products 2009-11 to 2021 (%)

Page 6: Mark Rosegrant, IFPRI

www.ifpri.org

Key Question

Page 7

Would reduction in meat consumption in richer countries improve food security in developing countries?

Source: Rosegrant 2012

Economic Growth and Meat Consumption

Page 7: Mark Rosegrant, IFPRI

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Dietary Change? Water is Gaining on Soda

Source: Beverage Marketing Corporation

Gal

loo

ns

per

cap

ita

Page 8: Mark Rosegrant, IFPRI

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Supply drivers

• Climate change and variability

• Water and land scarcity

• Competition with biofuels

• Investment in agricultural research

• Science and technology policy

– Discovery, development, delivery

– Intellectual property rights, regulatory systems, extension http://fbae.org/2009/FBAE/website/

images/btcotton_rice.jpg

http://www.tribuneindia.com/2004/200

40721/har.jpg

Supply-side Drivers of Agricultural Growth and Food Security

Page 9: Mark Rosegrant, IFPRI

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Whither Oil Prices / Biofuel Expansion?

Oil prices are highly correlated to food prices

Rising oil prices make biofuels more profitable

Global biofuel production projected to almost double from 2009-11 to 2021

Cereal use for biofuels to rise by 7% annually—compared to 1.5% for food and feed

50

100

150

200

250

300

Jul-06 Jul-08 Jul-10 Jul-12

Food

Oil

Source: Data from IMF 2012

Oil and food prices, 2006-12 (2005 = 100)

Biofuel production, 1996-2021 (billion liters)

Source: Data from OECD-FAO Outlook 2012

0

20

40

60

80

100

1996 2001 2006 2011 2016 2021

EU-27

USA

Brazil

Source: OECD/FAO 2012Source: Abbott, Hurt, and Tyner 2008

Page 10: Mark Rosegrant, IFPRI

Challenges for Water Policy

Increasing costs of developing new water and delivering developed water; need for efficient use of developed water

Wasteful use of already developed supplies encouraged by subsidies and distorted incentives that influence water use

Depletion of groundwater, water pollution, declining water quality, and degradation of water-related ecosystems

Climate change, extreme weather and variable energy prices

Future role of hydropower and multipurpose dams

Page 11: Mark Rosegrant, IFPRI

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Change (%) in average annual runoff across the regions of the world

Source: World Bank WDR 2010

Page 12: Mark Rosegrant, IFPRI

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Change in consecutive number of dry days across regions of the world

Source: WB WDR 2010.

Longer dry spells

Page 13: Mark Rosegrant, IFPRI

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Change in rainfall intensity across regions of the world

Source: WB WDR 2010.

More intense rainfall

Page 14: Mark Rosegrant, IFPRI

Scenario Modeling Methodology

Page 15: Mark Rosegrant, IFPRI

The IMPACT3 Modeling Suite Linked system of hydrological, water use, crop simulation, and

partial equilibrium economic models

IMPACT

IMPACT Global Hydrological

Model

IMPACT Water Simulation

Model

DSSAT Crop Models

GCM Climate Forcing

Effective PPotential ET

IRW

Irrigation Water Demand & Supply

Crop Management

WATER STRESS

Pop & GDP growth

Area & yield growth

Food Projections

• Crop area / livestock numbers, yields, and production

• Agricultural commodity demand

• Agricultural commodity trade and prices

• Hunger and Mal-nourishment

Water Projections

• Water demand and supply for domestic, industrial, livestock and irrigation users

• Water supply reliability

Page 16: Mark Rosegrant, IFPRI

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IMPACT Spatial Resolution

159• Countries

154• Water

Basins

320

• Food Production Units

Page 17: Mark Rosegrant, IFPRI

Alternative Food and Water Scenarios to 2050

Page 18: Mark Rosegrant, IFPRI

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IMPACT Baseline Suite

NoCC – Historical climate

Four GCMs, IPCC-AR5, with one Shared Socioeconomic Pathway (SSP2) and Representative Concentration Pathway (RCP) 8.5

• IPSL, Hadley, MIROC, GFDL

Climate Change Business As Usual (BAU)– with climate change, HadGEM2, RCP 8.5 and SSP2

Page 19: Mark Rosegrant, IFPRI

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Rainfed Maize: Global mean yields projected 30% lower in 2050 compared to no climate change (HadGEM2, RCP 8.5)

Source: IFPRI IMPACT simulations

Page 20: Mark Rosegrant, IFPRI

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Irrigated Rice: Global mean yields projected 12% lower in 2050 compared to no climate change (HadGEM2, RCP 8.5)

Source: IFPRI IMPACT simulations

Page 21: Mark Rosegrant, IFPRI

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Rainfed Wheat: Global mean yields projected 4.0% lower in 2050 compared to no climate change (HadGEM2, RCP 8.5)

Source: IFPRI IMPACT simulations

Page 22: Mark Rosegrant, IFPRI

www.ifpri.org

Cereals - most severe global impacts of climate change on prices: 25% increase compared to NoCC in 2050; 50% higher than 2010

Meat - relatively modest 5% impact (indirect) of CC

Cereals Meats

Indexed Global Prices BAU

Source: IFPRI, IMPACT version 3.2, 8 September 2015

Page 23: Mark Rosegrant, IFPRI

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Fruits and vegetables, pulses, and roots and tubers: 9% to 12% increase with CC in 2050 (about 30% above 2010 levels)

Roots & Tubers Pulses

Indexed Global Prices BAU

Source: IFPRI, IMPACT version 3.2, 8 September 2015

Page 24: Mark Rosegrant, IFPRI

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Population at risk of hunger (SSP2, RCP8.5)

Source: IFPRI, IMPACT version 3.2, 8 September 2015

EAP = East Asia and Pacific; SAS = South Asia; FSU = Former Soviet Union; MEN = Middle East and North Africa; SSA = Sub-Saharan Africa; LAC = Latin America and Caribbean

Page 25: Mark Rosegrant, IFPRI

Bioeconomy Scenario Description

Annual productivity growth increases by average across crops of 0.23 percentage points and 0.20 percentage points for livestock

Water use efficiency - assumed to improve in each sector:

• Domestic sector: average global efficiency improvement = 45% in 2050 compared to BAU

• Industrial sector: average global efficiency increase = 43% by 2050 compared to BAU

• Smaller efficiency gains for irrigation sector

– Average global efficiency gains = 15% in 2050 compared to BAU

Page 26: Mark Rosegrant, IFPRI

Bioeconomy Scenario Description Efficiency gains for industrial and residential water use

taken from WaterGAP model (Ozkaynak et al. 2012); irrigation sector by IFPRI

Underlying assumptions of water use efficiency gains• Efficiency measures in industry and residential water use and

climate policies lead to recycling and reduced demand for thermal cooling in power generation as fossil-fuel-powered plants are more rapidly replaced by renewable energy sources

• For agriculture, basin water use efficiency gains are based on more efficient transpiration and reduced water losses

– drought resistant varieties and other advances in research and biotechnology

– reduced non-beneficial ET

– reduced losses to water sinks (e.g. due to water-conserving irrigation and crop management technologies and reduced evaporative losses during conveyance)

Page 27: Mark Rosegrant, IFPRI

Bioeconomy Scenario Description

Impact of faster technological change - commercial scale second generation biofuels start 5 years earlier than Business As Usual (BAU) (2025 rather than 2030); reducing demand for first generation feedstocks

GDP growth increased relative to BAU to reflect increased productivity in agricultural and water sectors

CGE model GTEM (Ahammad and Mi 2005) used iteratively with IMPACT to generate multiplier effects from agricultural and water sector productivity growth to GDP growth

Globally, GDP growth increases from 3.2% per year under BAU to 3.6% per year under Bioeconomy Scenario

Page 28: Mark Rosegrant, IFPRI

Total consumptive water use (km3/yr) under Business As Usual and Bioeconomy Scenarios in 2000, 2030 and 2050

Source: IFPRI IMPACT projections (2012).

Region 2000

2030 2050

BAU BIOChange vs. BAU

(%)BAU BIO

Change vs. BAU

(%)

East Asia & Pacific 428.5 493.4 476.2 -3.5 588.8 508.9 -13.6

Europe & Central Asia 100.6 158.2 118.8 -24.9 219.3 121.3 -44.7Latin America & Caribbean 113.5 160.0 142.0 -11.3 188.4 149.3 -20.8

Middle East & North Africa 72.7 96.6 90.5 -6.3 105.1 96.1 -8.6

South Asia 502.8 608.7 592.8 -2.6 693.3 663.1 -4.3

Sub-Saharan Africa 50.5 100.5 90.2 -10.2 139.5 114.1 -18.2

North America 146.4 184.7 161.3 -12.7 218.6 159.9 -26.9

NAFTA 180.0 225.7 198.0 -12.3 262.7 196.0 -25.4

Europe Developed 48.7 57.9 44.3 -23.4 66.4 40.1 -39.6

Developed 235.3 289.0 246.9 -14.6 331.6 237.7 -28.3

Developing 1269.0 1617.4 1510.6 -6.6 1934.4 1652.8 -14.6

World 1504.3 1906.4 1757.5 -7.8 2266.0 1890.6 -16.6

Page 29: Mark Rosegrant, IFPRI

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Change in Irrigation Water Consumption Bioeconomy Scenario Compared to BAU (%)

-20 -15 -10 -5 0 5 10 15

EastAsiaPacific

EuropeCentralAsia

LatinAmericaCaribbean

MiddleEastNorthAfrica

SouthAsia

SubSaharanAfrica

NorthAmerica

NAFTA

EuropeDeveloped

Developed

Developing

World

2050 2030

Source: Rosegrant et al. 2012b

Page 30: Mark Rosegrant, IFPRI

Irrigation Water Supply Reliability under BAU and Bioeconomy in 2000, 2030, 2050

Region 20002030 2050

BAU BIO BAU BIO

East Asia & Pacific 0.754 0.631 0.714 0.554 0.675Eastern Europe & Central Asia 0.668 0.617 0.666 0.515 0.655Latin America & Caribbean 0.911 0.933 0.954 0.936 0.973Middle East & North Africa 0.986 0.975 0.978 0.972 0.975

South Asia 0.706 0.622 0.679 0.517 0.645

Sub-Saharan Africa 0.825 0.747 0.785 0.715 0.780

North America 0.978 0.984 0.990 0.987 1.000

NAFTA 0.983 0.988 0.993 0.991 1.000

Europe Developed 0.974 0.997 0.999 0.994 0.996

Developed 0.958 0.961 0.972 0.956 0.982

Developing 0.749 0.670 0.728 0.592 0.705

World 0.766 0.692 0.747 0.619 0.726

IWSR - ratio of annual irrigation water supply to demandSource: Rosegrant et al. 2012b

Page 31: Mark Rosegrant, IFPRI

Percent Change in World Prices of Cereals between BAU and Bioeconomy Scenario, 2050

-20

-15

-10

-5

0

5

Rice Wheat Maize OtherGrains

Millet Sorghum

Pe

rce

nt

Ch

ange

Source: Rosegrant et al. 2012b

Page 32: Mark Rosegrant, IFPRI

Percent Change in Per Capita Cereal Consumption between BAU and Bioeconomy Scenario, 2050

0

2

4

6

8

10

12

Pe

rce

nt

Ch

ange

Source: Rosegrant et al. 2012b

Page 33: Mark Rosegrant, IFPRI

Percent Change in Population at Risk of Hunger Between BAU and Bioeconomy Scenario, 2050

-50

-45

-40

-35

-30

-25

-20

-15

-10

-5

0

East Asia &Pacific

Europe &Central Asia

Latin America& Caribbean

Middle East& North

Africa

South Asia Sub-SaharanAfrica

Pe

rce

nt

Ch

ange

Source: Rosegrant et al. 2012b

Page 34: Mark Rosegrant, IFPRI

Conclusions

Page 35: Mark Rosegrant, IFPRI

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Policies for Water and Food Security

1. Accelerate investments in agricultural R&D for productivity growth

2. Promote complementary policies and investments

3. Reform economic policies

4. Implement new water policies

Page 36: Mark Rosegrant, IFPRI

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Invest in technologies for Crop and livestock breeding

• High-yielding varieties• Biotic- and abiotic-stress

resistant varieties Modernize breeding programs in

developing countries through provision of genomics, high throughput gene-sequencing, bio-informatics and computer

GMOs where genetic variation does not exist in the crop • Nitrogen use efficiency• Drought, heat and salinity

tolerance• Insect and disease resistance

+

1. Accelerate Investments in Agricultural R&D for smallholder productivity

Global public spending on agric. R&D, 2008 (%)

Source: ASTI 2012

Page 37: Mark Rosegrant, IFPRI

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2. Promote Complementary Policies and Investments

Invest in rural infrastructure and irrigation

Increase access to high-value supply chains and markets e.g. fruits, vegetables, and milk

Regulatory reform: Reduce hurdles to approval and release of new cultivars and technologies

• Remove impediments (e.g. restrictive “notified” crop lists, excessive testing and certification requirements, foreign investment barriers, ad hoc biosafety decision-making)

Extension of farming systems: minimum tillage, integrated soil fertility management, integrated pest management, precision agriculture

Page 38: Mark Rosegrant, IFPRI

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Support open trading regimes to share climate risk

Use market-based approaches to manage water and environmental services combined with secure property rights

Reduce subsidies that distort production decisions and encourage water use beyond economically appropriate levels

• Fertilizer, energy, water subsidies

• Savings invested in activities that boost farm output and income

3. Reform Economic Policies

Page 39: Mark Rosegrant, IFPRI

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4. Implement New Water Policies

Establishment of secure water rights

Design and implementation of economic incentives for efficient use of agricultural water

Policy reform to deal with water quality and environmental problems

Enhance water security through on-farm crop management and crop breeding for water productivity

Develop energy- and GHG-conserving water policies

Design and implementation of long term investment strategies for irrigation, hydropower, and water supply and sanitation