1. 1 5 TH WORLD WATER FORUM SIDE EVENT ON “WATER FOOTPRINT AND VIRTUAL WATER TRADE” HOSTED BY M. BOTIN FOUNDATION WATER OBSERVATORY DAY: 18 TH MARCH, 2009: 11:00-13:00 VENUE: SUTLUCE/KIMPASA 1 HALL WHY THE “ADVANCED” WATER FOOTPRINT MAY HELP CHANGE CURRENT PARADIGMS ON WATER AND FOOD SECURITY? By: PROF. M. RAMÓN LLAMAS M. BOTÍN FOUNDATION WATER OBSERVATORY

2. 2 TABLE OF CONTENTS 1.INTRODUCTION 2.WATER AGRICULTURAL USE IS THE KEY ISSUE 3.THE “CLASSIC” WATER FOOTPRINT TOOL HAS ALLOWED TO CONSIDER THE RELEVANCE OF VIRTUAL WATER TRADE 4.THE “ADVANCED” WATER FOOTPRINT TOOL SHOWS THE RELEVANCE OF ECONOMIC AND ECOLOGICAL FACTORS/DIMENSIONS 5.FROM “MORE CROPS AND JOBS PER DROP” TO “MORE CASH AND NATURE PER DROP” 6.THE NEED TO RE-THINK CURRENT WATER AND FOOD SECURITY PARADIGMS

3. 3 1.- INTRODUCTION (I) THE “DISCOVERY” OF THE VIRTUAL WATER CONCEPT (ALLAN 1993) AND THE VOLUMETRIC QUANTIFICATION OF VIRTUAL WATER TRADE (HOEKSTRA, 2002) ARE IMPORTANT MILESTONES IN GLOBAL WATER POLICY.

4. 4 1.- INTRODUCTION (II) NOW IT SEEMS NECESSARY TO GO ONE STEP FORWARD TO INCLUDE IN WATER FOOTPRINT ANALYSIS ECONOMIC AND ENVIRONMENTAL FACTORS.

5. 5 2. WATER AGRICULTURAL USE IS THE KEY ISSUE (I) NUMEROUS RECENT REPORTS HAVE SHOWN THAT GLOBALLY ABOUT 90% OF TOTAL WATER CONSUMPTIVE USES (GREEN AND BLUE WATER) ARE SPENT IN AGRICULTURAL PRODUCTION.

6. 6 2. WATER AGRICULTURAL USE IS THE KEY ISSUE (II) OTHER USES (URBAN AND DOMESTIC SUPPLY, INDUSTRY, ENERGY, AND OTHERS) - ALTHOUGH POLITICALLY AND ETHICALLY RELEVANT -ARE NOT SIGNIFICANT FROM A GLOBAL WATER POLICY CONSIDERATION. THEREFORE, NOW WE ONLY CONSIDER WATER USE IN AGRICULTURE AND IN THE ENVIRONMENT.

7. 7 3.- THE ‘CLASSIC’ WATER FOOTPRINT TOOL HAS ALLOWED TO CONSIDER THE RELEVANCE OF VIRTUAL WATER TRADE (I) VIRTUAL WATER TRADE IS TODAY A FACT. ALTHOUGH RARELY RECOGNIZED, IT HAS ALLOWED MANY ARID AND SEMIARID COUNTRIES NOT ONLY TO SURVIVE BUT TO THE THRIVE.

8. 8 3.- THE ‘CLASSIC’ WATER FOOTPRINT TOOL HAS ALLOWED TO CONSIDER THE RELEVANCE OF VIRTUAL WATER TRADE (II) THESE COUNTRIES IMPORT STAPLE FOODS FROM WATER-RICH COUNTRIES AND USE THEIR SCARCE WATER RESOURCES FOR MORE BENEFICIAL ACTIVITIES (CASH CROPS, TOURISM, INDUSTRY, ENERGY AND OTHERS). THE MIDDLE-EAST COUNTRIES ARE GOOD EXAMPLES, MAINLY ISRAEL AND JORDAN.

9. 9 4.- THE “ADVANCED” WATER FOOTPRINT INTRODUCES THE RELEVANCE OF ECONOMIC AND ECOLOGICAL FACTORS (I) THE NEXT STEP HAS BEEN TO CONSIDER NOT ONLY THE TRADE OF VIRTUAL WATER VOLUMES BUT ALSO THE ‘ECONOMICS’ OF THIS TRADE.

10. 10 4.- THE “ADVANCED” WATER FOOTPRINT INTRODUCES THE RELEVANCE OF ECONOMIC AND ECOLOGICAL FACTORS (II) FOR INSTANCE, THE WATER VOLUME INVOLVED IN THE TRADE OF A TONNE OF WHEAT AND OF A TONNE OF OLIVE OIL IS SIMILAR YET THE ECONOMIC VALUE PER CUBIC METER OF WATER TRADED IS MORE THAN TEN TIMES HIGHER IN THE CASE OF OLIVE OIL.

11. 11 4.- THE “ADVANCED” WATER FOOTPRINT INTRODUCES THE RELEVANCE OF ECONOMIC AND ECOLOGICAL FACTORS (III) THE M. BOTIN FOUNDATION HAS ALMOST FINALISED THE HYDROLOGICAL AND ECONOMIC WATER FOOTPRINT OF SPAIN.

12. 12 5.- FROM “MORE CROPS AND JOBS PER DROP” TO “MORE CASH AND NATURE PER DROP” (I) WHAT WE ARE SUGGESTING IS TO CHANGE THE PREVIOUS MOTTO “MORE CROPS AND JOBS PER DROP” TO THE NEW MOTTO “MORE CASH AND NATURE PER DROP” THIS SUGGESTED CHANGE MAY NOT STILL BE APPROPRIATE FOR VERY POOR COUNTRIES.

13. 13 5.- FROM “MORE CROPS AND JOBS PER DROP” TO “MORE CASH AND NATURE PER DROP” (II) IT ALSO SEEMS NECESSARY TO INCLUDE “NATURE IN THE WATER FOOTPRINT ANALYSIS”; I.E. THE ENVIRONMENTAL ASPECTS. WE ARE DOING THIS IN THE WATER FOOTPRINT ANALYSIS OF THE GUADALQUIVIR RIVER.

14. 14 6.- THE NEED TO RE-THINK CURRENT WATER AND FOOD SECURITY PARADIGMS IN SUMMARY, IT IS NECESSARY TO RE- THINK CURRENT PARADIGMS. THEY USUALLY IGNORE CONCEPTS LIKE VIRTUAL WATER TRADE, DESALINATION, THE ROLE OF GROUNDWATER DEVELOPMENT AND OTHER SIGNIFICANT FACTORS. THE WATER OBSERVATORY OF THE M. BOTIN FOUNDATION IS WORKING ON THESE TOPICS.

15. 15 THANKS FOR YOUR ATTENTION