OECD Work-On-Water-2014

8/11/2019 OECD Work-On-Water-2014

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WATEROECD WORK ON


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WaterOECD WORK ON

Water policies around the world arein urgent need of reform. OECD workidenties the priority areas wheregovernments need to focus their reformefforts.

Angel Gurra, OECD Secretary-General

2014


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ContentsOverview of OECD work on water 4

OECDEnvironmental Outlook to 2050: Water 6

Financing and economics of water 9

Aid ows for water 12

Water governance 14

The OECD Water Governance Initiative 17

The governance of water regulators 18

Focus on the private sector 19

Water and agriculture 20

Managing water for future cities 22

Cross-cutting issues: 24

Water security 24

Managing water for green growth 26

Water and climate change adaptation 27

Policy coherence: water, energy, agriculture and the environment 29

Making water reform happen 30

Reaching out to key stakeholders 36

Water indicators and data 37

Key water publications 40

www.oecd.org/water
http://www.oecd.org/waterhttp://www.oecd.org/water


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Water is essential for life for health for human dignity and for well-functioning ecosystems.

One billion people are currently without clean drinking water and 2.5 billion lack access to basicsanitation. Polluted water and poor sanitation cause 1.5 million preventable child deaths per yearand is the biggest source of child mortality along with malaria and malnutrition. According to theWorld Health Organisation, investing USD 1 in water and sanitation saves USD 4-12 in avoidedhealth care costs alone.

Good water management is a longstanding policy challenge. Many of the building blocks ofgood water policy are well-known. Many of the technological solutions, policy instruments and

institutional insights required to bring about much better results largely exist. Yet, important gapspersist between aspirations to ensure access to enough safe, clean water for all people and theenvironment, and the actual conditions on the ground.

4 . OECD WORK ON WATER

Overview of OECD work on water

We never know

the worth of water

till the well is dry.Thomas Fuller


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THE ORGANISATION FOR ECONOMICCO OPERATION AND DEVELOPMENT

The Organisation for Economic

Co-operation and Development (OECD)

is a multi-disciplinary inter governmental

organisation, tracing its roots back to the

post-World War II Marshall Plan. Today, it

comprises 34 member countries that are

committed to democratic government and

the market economy and the European

Commission, with the major emerging

economies increasingly engaged directly

in the work. The OECD provides a unique

forum and the analytical capacity to assist

governments to compare and exchange

policy experiences, and to identify and

promote good practices through policy

decisions and recommendations.

OECD WORK ON WATER. 5

The OECD is working to help developed and developing countriesmeet the water challenge. With a multi-disciplinary team drawnfrom across the organisation, the OECD contributes analyses toimprove the information base, identify good practice, and providea forum for exchanging country experiences. Recent work hasaddressed issues of nancing, governance, policy coherence,private sector participation, and water and agriculture. Ongoingwork also covers the issues of water security, water and greengrowth, climate change adaptation, water allocation and urbanwater management.

In addition to analytical work, the OECD works with selectedcountries to facilitate the reform of water policies. This conrmsour aspiration to make reform happen. The OECD has recentlyenhanced its convening power and capacity to structurediscussion among stakeholders on water issues, by setting up theWater Governance Initiative.

This brochure provides an overview of OECD work on water.

Key link : www.oecd.org/water
http://www.oecd.org/waterhttp://www.oecd.org/water


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Overall water demand is projected toincrease by some 55% by 2050, due togrowing demand from manufacturing,energy generation and domestic use.There will be increasing competitionfor water amongst uses and users,putting ecosystems at risk. Groundwater depletion maybecome the greatest threat to agriculture and urban watersupplies in several regions in the coming decades. Nutrient

pollution from point sources (urban wastewater) and diffuse


1OECD Environmental Outlook to 2050 : Water

The OECD Environmental Outlook to 2050 provides asnapshot of the global state of water under business-as-usual conditions. It also highlights the policies that couldchange that picture for the better. The work is based on joint modelling by the OECD and the PBL NetherlandsEnvironmental Assessment Agency. These model-basedprojections shed light on what demographic and economictrends might mean for water if governments do notintroduce new policies to manage freshwater resources with

much greater care.


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sources (mainly agriculture) is projected to worsen in mostregions, intensifying eutrophication and damaging aquaticbiodiversity. Despite progress in increasing access to improvedwater sources and sanitation, signicant challenges remain. Policy options to address these water challenges highlightedin the Outlook include: investing in green infra structures,creating incentives for water efciency, improving waterquality and ensuring policy coherence.

OECD WORK ON WATER . 7

Overall water demand isprojected to increase by some

0

1 000

2 000

3 000

4 000

5 000

6 000

2000

OECD BRIICS RoW World

2050 2000 2050 2000 2050 2000 2050

K m 3

irrigation domestic livestock manufacturing electricity

Global water demand: Baseline, 2000 and 2050

Note : This graph only measures blue water demand and does not consider rainfed agriculture.

Source : Environmental Outlook Baseline; output from IMAGE.

55% by 2050.


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While the number of people with access to an improved water sourceis expected to increase, more than 240 million people worldwide(mostly rural residents) are expected to be without such access by2050. Most regions, except sub-Saharan Africa, are likely to meetthe Millennium Development Goal (MDG) of halving by 2015 the 1990level of the population without access to an improved water source.

However, access to an improved water source does not meanaccess to safe water t for human consumption. It is expected thatthe MDG for sanitation will not be met by 2015. By 2050, 1.5 billionpeople are projected to remain without access to basic sanitation,mostly in developing countries, with severe consequences on healthand the environment.


0

100

200

300

400

500

600

700

800

900

1 000

1 100

1990 2010 2030 2050 1990 2010 2030 2050

m i l l i o n s o f p e o p l e

Urban Rural

OECD BRIICS RoW

Population lacking access to an improved water source: Baseline, 1990-2050 Population lacking access to basic sanitation facilities: Baseline, 1990-2050

m i l l i o n s o f p e o p l e

0

200

400600

800

1 000

1 200

1 400

1 600

1 800

2 000

1990 2010

Ur an ura

2030 2050 1990 2010 2030 2050

OECD BRIICS RoW

Source : Environmental Outlook Baseline; output from IMAGE.

Access to an improved water source and basic sanitation


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1.5 billion people are projected by 2050 to remainwithout access to basic sanitation,mostly in developing countries.

OECD work has addressed how nancingfor essential water and sanitationservices can be mobilised and hasdeveloped a set of policy tools thatgovernments can use to support theseefforts. Closing the nancing gap forwater and sanitation infrastructure willrequire countries to mobilise nancingfrom a variety of sources as well as

reducing costs through efciency gains.

The OECD report Meeting the Challenge ofFinancing Water and Sanitation provides aset of tools and approaches for nancingwater supply and sanitation, including:nancial planning tools for national andlocal governments, as well as for waterutilities, benchmarking and performance

tools, and a checklist for public action onprivate sector participation. These toolshave been successfully tested and usedin a number of OECD and developingcountries (see pages 30-35).

Did you know?

The total economic valuegenerated by wetlands inone particular natural park

in Normandy, France rangesbetween EUR 2 400 and 4 400per hectare. This suggeststhat policies which wereconsidered too costly (suchas land acquisition to protectcatchments) actually makeeconomic sense.


2Financing and economics of water

Water supply and sanitation servicesgenerate substantial benets forhuman health, the economy and theenvironment. Access to clean drinkingwater and sanitation reduces healthrisks and frees up time for educationand other productive activities, aswell as increasing the productivityof the labour force. Safe wastewater

disposal helps to improve the qualityof surface waters with benets for theenvironment as well as for economicsectors that depend on water as aresource. Such benets usually faroutstrip the costs of service provisionand provide a strong basis for investingin the sector. Realising these benetswill require a signicant scale-up

in funding in both developed anddeveloping countries.


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The OECD also reviews the experience of countries innancing water resources management, with a focus on therole of economic instruments in improving incentives forwater users and nancing water management services. Goodwater resources management can improve the sustainability

of watershed services and enhance the value they add to thecommunity. However, markets do not generally recognisethese benets and the beneciaries of water-relatedservices do not usually pay the cost of their provision. Asa result, government intervention is required to providethe institutional and nancial mechanisms to address thismarket failure.

The experience of countries in nancing water resourcesmanagement is reviewed in the OECD report A Framework

for Financing Water Resources Management. The report focuseson the role of economic instruments to: curb water demandand the need for additional infrastructures; promote low costoptions, including green infrastructures such as wetlandsand oodplains; generate revenues for water policies andwater-related services; and allocate water where it is mostneeded.

OECD work in Environmental Performance Reviews andanalytical studies identies good practices in the design andimplementation of such instruments.



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The OECD compiles data on water prices to inform water policy andnancing decisions. Data indicate that the operation and maintenancecosts of domestic and industrial WSS services are generally coveredby tariffs in OECD countries. However, operators typically lacksufcient revenues to make the investments needed to renew andreplace ageing infrastructure. Generating enough revenues to coverfull economic or sustainability costs seems to be a remote target only.

Figures conrm that water supply and sanitation bills do not representa considerable burden on the average disposable household incomein OECD countries. However, to ensure affordability for poorerhouseholds, many countries have introduced social tariffs or othermeasures.

Unit price of water and wastewater services to households in 2007-08, including taxes (USD/m3)

Source: OECD estimates based on country replies to the 2007-08 survey or public sources validated by the countries.

0.490.77

1.231.40 1.45

1.581.85 1.92 1.98

2.02 2.122.43 2.44

3.13

3.59 3.743.82 3.92

4.144.41

5.72

6.70

0

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3



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Donors allocated on average 6% oftheir aid programmes to the watersector in developing countriesin 2010-11. This share has beenregularly increasing over the last30 years. The share allocated toeducation reaches 11% and 14%for health.

Aid ows for water

The OECD collects and regularly updates statistics on aidfor water supply and sanitation. The data collection isbased on a standard methodology and agreed denitions

which ensures that data can be used to analyse trends andcompare the efforts of donors.

Data cover ows from members of the OECD DevelopmentAssistance Committee (DAC), non-DAC providers ofdevelopment assistance, and multilateral agencies includingthe World Bank, regional development banks, UN agenciesand other agencies such as the Arab institutions or GlobalEnvironment Facility. The coverage improves from year toyear.

In addition to aid ows, non-concessional developmentalows for water extended by bilateral development nanceinstitutions and multilateral agencies are collected through

the Creditor Reporting System (CRS). Data collection has alsostarted from private charitable foundations.

OECD analysis provides insight on how and where aid forwater is spent. Regular statistical briefs cover the followingaspects:l Monitoring trendsl Commitments versus disbursementsl Geographical allocation of resourcesl Nature of projects nanced

l Water and climate changel Water and gender equality

Did you know?


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Trends in aid to water and sanitationCommitments, annual gures and 5-year moving averages, constant 2009 prices, USD millions

Source : http://webnet.oecd.org/dcdgraphs/water /

Key link : All information relatedto aid ows for water, including

statistical briefs, standardstatistics and user-friendly accessto the online database is availableat: www.oecd.org/dac /stats/ water.

Recent improvements in statistics on aid ows for water

l Sanitation versus water supply : A new feature in the data, starting with2010 ows, is the possibility to identifyaid for sanitation separately fromwater supply. This amendment to thesector classication was realised at therequest of water experts, including UNWater and the EUWI.

l New classication for aid modalities : Also starting with 2010 ows donors havestarted to report on aid modalities (budgetsupport, pooled contributions, projects,technical assistance) which will facilitatestudying donors preferred aid modalities inthe water sector.

9 000

Bilateral and multilateral agencies annual figures8 000

7 000

6 000

5 000

4 000

3 000

2 000

1 000

1 9 7 1

1 9 7 3

1 9 7 5

1 9 7 7

1 9 7 9

1 9 8 1

1 9 8 3

1 9 8 5

1 9 8 7

1 9 8 9

1 9 9 1

1 9 9 3

1 9 9 5

1 9 9 7

1 9 9 9

2 0 0 1

2 0 0 3

2 0 0 5

2 0 0 7

2 0 0 9

0

Bilateral and multilateral agencies 5-year moving average

D m

i l l i o n s
http://webnet.oecd.org/dcdgraphs/waterhttp://www.oecd.org/dachttp://www.oecd.org/dachttp://webnet.oecd.org/dcdgraphs/water


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3Water governanceManaging water for all is not only a question of resourceavailability and money, but also a matter of good governance.Water involves a wide range of stakeholders at basin,municipal, regional, national and international levels.In the absence of effective public governance to manageinterdependencies across policy areas and between levelsof government, policymakers inevitably face obstacles toeffectively designing and implementing water reforms.

In addition, good governance and nancial sustainabilityare inextricably linked. Ensuring that the water sector has asound regulatory and institutional basis can help to increasethe attractiveness of the sector for private sources of funding,as well as improve the nancial sustainability of public waterutilities.

Key governance challenges include institutional and territorialfragmentation and poorly managed multi-level governance.

Limited capacity at the local level, unclear allocation of rolesand responsibilities and questionable resource allocation arealso problematic. This is often reected in patchy nancial

management and the lack of long-term strategic planning,together with weak economic regulation and poorly draftedlegislation. Insufcient means for measuring performancehave contributed to low accountability and transparency.These obstacles are often rooted in misaligned objectives andpoor management of interactions between stakeholders.

Often the technical and institutional solutions to the watercrisis do exist and are well-known. The real challenge liesin implementing these solutions, tailoring them to localcontexts, overcoming obstacles to reform, and bringingtogether the main actors from different sectors to joinforces and share the risks and tasks. OECD work on watergovernance diagnoses key co-ordination gaps in waterpolicy in order to provide adequate policy responses. TheOECD report Water Governance in OECD Countries: A Multi-level

Approach explores the co-ordination gaps in water policyfor 17 OECD countries. A similar effort was undertaken at

regional level for Latin America.

By 2015, 50% of countries will have adoptedTARGET 1


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OECD WORK ON WATER. 15

OECD work on water governance was inuential to structurethe discussion on that stream at the World Water Forum inMarseille in 2012. Participants dened and agreed upon sixgood governance targets to be achieved in the next decade,regarding stakeholders engagement, service performance,

improved integrated water resources management,groundwater governance, corruption alleviation andtransparent budgetary processes.

During the conclusion of governance discussions in Marseille,institutions agreed to set up a platform that will maintaincontinuous links and cooperation across stakeholdersbetween World Water Fora. The OECD Water GovernanceInitiative was set up in 2013 to play this role.

Did you know?

In OECD countries,the funding andcapacity gaps are

the most importantchallenges for multi-level governance inwater policy making.

consultation, participation and co-ordinationmechanisms allowing stakeholders at local, regional,national and international levels to effectivelycontribute to decision-making in a coherent, holisticand integrated way. By 2021, 100% will have done so.

By 2015, 50% of countries will have strengthenedregulatory frameworks and adopted performanceindicators (service delivery) to monitor and evaluatewater policies; and all countries will have put in place

capacity-building processes at national and local levelto foster good governance in service delivery. By 2018,all countries will have done so.

By 2021, increase by 30% the number of river basinmanagement plans (analysis of initial status and mainissues).

By 2015, increase the number of countries with watersecurity diagnoses and governance tools, based onexisting (local, national and international) regulatoryand legislative frameworks and integrated waterresources management mechanisms.

By 2018, 30 countries will have committed to promoteintegrity in the water sector, diagnose/map existingor potential corruption risks, and ensure that anti-corruption policies are well implemented and effective.

By 2018, 30 countries will be implementing: transparentwater budget processes, including informationabout water infrastructure investment planning andimplementation (nancial, technical and socioeconomicimpacts); methods and tools for improving transparencyand accountability within the water sector.

TARGET 2

TARGET 3

TARGET 4

TARGET 5

TARGET 6

B E T T E R I N T E G R I T Y A N D T R A N

S P A R E N

C Y

I N T E G R A T E D WA T E R R E S

O U R

C E S MA N A

G E ME N T

E F F E C T I V E P

U B L I C

G O V E R N A N

C E

The Final Synthesis Report on Good Governance from the 6th World Water Forum can be accessed at www.oecd.org/gov/report_CG_CS1_Good_Governance_EN.pdf .
http://www.oecd.org/gov/report_CG_CS1_Good_Governance_EN.pdfhttp://www.oecd.org/gov/report_CG_CS1_Good_Governance_EN.pdf


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Preliminary guidelines for effectivemanagement of multi-level governance

l Diagnose multi-level governance gaps in water policy making.

l Involve sub-national governments in designing water policy.

l Adopt horizontal governance tools to foster coherence across related

policy areas.

l Create, update and harmonise water information systems.

l Encourage performance measurement.

l Respond to the territorial fragmentation of water policy by encouragingco-ordination across sub-national actors.

l Foster capacity-building at all levels of government.

l

Encourage a more open and inclusive approach through publicparticipation.

l Assess the adequacy and impact of existing governance instruments.

Vertical co-ordination

mechanisms across levels

of government

(17 OECD countries surveyed)

1

6

8

8

8

9

9

10

11

12

12

0 2 4 6 8 10 12 14

Other

Intermediate bodies or actors

River basin agencies

Shared databases

Multi-sectoral conferences

Regulations for sharing roles

Performance indicators

Contractual arrangements

Co-ordination agency

Financial transfers or incentives

Consultation of private stakeholders

Source :OECD WaterGovernanceSurvey (2010).


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The OECD Water Governance Initiative

The OECD Water Governance Initiative is an internationalmulti-stakeholder network of 100+ public, private and non-for-prot stakeholders gathering twice a year in a Policy Forum to

share on-going reforms, projects, lessons and good practicesin support of better governance in the water sector. It has thefollowing objectives:

l Advise governments in taking the needed steps for effectivewater reforms through policy dialogue across decision-makersat different levels.

l Provide a technical platform to discuss analytical work on

water governance through peer-to-peer exchanges andknowledge sharing.

l Provide a consultation mechanism to raise the prole ofgovernance issues in the Global Water Agenda (World WaterForum, Post-2015 Agenda).

l Support the implementation of the governance targetsdesigned for the 6th World Water Forum (Marseille, 2012) up to

the 7th World Water Forum (Korea, 2015).

l Contribute to the design of Principles on Water Governanceand Indicators on Water Governance.

The activities of the OECD Water Governance Initiative arecarried out through 4 Thematic Working Groups on stakeholderengagement; governance and performance of water services;basin governance; and integrity and transparency. The Initiativealso relies on Regional Partners in the Mediterranean region,

North America, Europe, Africa, in Latin America and Asia.

The 2013-15 programme of work of the Initiative includes:i) contributing to the governance component of the 7thWorld Water Forum Preparatory Process; ii) developing a setof Principles and Indicators on Water Governance; iii) peer-reviewing water governance policy dialogues in OECD memberand non-member countries; iv) sharing good practices andlessons in support of better governance in the water sector.

Key links : OECD Water Governance Initiativewww.oecd.org/gov/water

P R O V I D E P

O L I C Y G U I D A N C E

S C A L E

UP B E

S T P R A

C T I C E

OECDcountry

water policydialogues

Globalwater

agenda

Peer-review

analyticalwork

Supportthe 7thWWF

PolicyForum
http://www.oecd.org/gov/waterhttp://www.oecd.org/gov/water


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The governance of water regulators

Water regulators play a key role in ensuring transparencyin the water sector and contribute to making the sectormore user-centric and accountable to the public. They also

constitute a critical link in the regulatory governance cycle byensuring compliance with the regulatory framework. The waythey discharge their functions depends on their governancearrangements.

The OECD works with 32 water regulators, part of the Networkof Economic Regulators, to identify the features of dedicatedbodies set up to regulate the provision of urban drinking waterand wastewater services.

Regulators participating in the OECD work on the governance ofwater regulators (per year of establishment)

5

8

13

6

0

2

4

6

8

10

12

14

1911-1937 1989-1999 2000-2009 >2010

Australia / Victoria*Western Australia*

Armenia*Brazil/RGDSBulgaria*IndonesiaKosovoLatvia*MalaysiaMozambiqueRomania*UK/Scotland *Uruguay*

Belgium/FlandersEstonia*Hungary*Italy*Ireland*Ukraine*

Albania Australia / ACT* Australia / NSW*ChileColombiaPortugal*UK/England &Wales

US / Hawaii*US/ Maine*US / Ohio*US

/Pennsylvania*

OECD work on Applying better regulationin the water sector

1. Institutionalsetting

2. Mandates &roles

3. Internalorganisation

4. Accountabilitymechanisms

5. Tools & mechanismsto ensure regulatory

quality

a) Position in theinstitutional

landscape &co-ordination

b) Legislativeframework

b) Independence

a) Competencies

b) Scope of activityand market

b) Core functions

b) Powers

a) Governancemodels

b) Personnel

c) Financialresources

a) Formalaccountability

b) Reportingrequirements

c) Appealprocesse

a) Consultation withoperators and consumers

b) Disputeresolution

c) Impact analysis ofregulatory decision

d) Burdenreduction

Source: OECD Survey on Applying Better Regulation in the Water Service Sector (2014).

The work builds on the OECD Best Practice Principles for the

Good Governance of Regulators to understand what it meansto be a well-performing water regulator. It is based on adetailed survey of institutional settings; mandates, roles andcore regulatory functions; internal organisation; accountabilitymechanisms; and use of tools and mechanisms to ensureregulatory quality.

The structure of the survey


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Focus on the private sector

Providing an adequate frameworkfor private sector participation inthe nancing, development and

management of water and sanitationinfrastructure is a key governancechallenge. The OECD, working withnon-OECD countries and stakeholders,developed a Checklist for Public Action,building on the OECD Principles for PrivateSector Participation in Infrastructure. TheChecklist helps governments to properlyassess and manage the implications

Key link : http://www.oecd.org/investment/investment- policy/water.htm

of private sector participation in thewater sector. Experience drawn fromapplying the Checklist in a range ofcountries has pointed to the need forcountries to assess their frameworks

for private sector participation. Thereis also a strong demand to share toolsand access good practice. Focussing onframework conditions has proven to beof particular relevance. The Checklist hasdemonstrated its usefulness in helpingcountries identify key areas for reform.

The OECD Checklist for Public Action hasbeen used to carry out assessments ofprivate sector participation in the watersector in Egypt, Lebanon, Mexico, Russiaand Tunisia.

The Checklist highlights a set of principlesacross ve key policy areas:

l Deciding on the nature and modalities ofprivate sector participation.

l Providing a sound institutional andregulatory environment for infrastructure

investment.

l Ensuring public and institutional supportfor the project and choice of nancing.

l Making the co-operation between thepublic and private sectors work in thepublic interest.

l Encouraging responsible business

conduct.
http://www.oecd.org/investment/investment-policy/water.htmhttp://www.oecd.org/investment/investment-policy/water.htmhttp://www.oecd.org/investment/investment-policy/water.htmhttp://www.oecd.org/investment/investment-policy/water.htm


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4Water and agricultureThere is a large, complex and dynamic set of linkages

between agriculture and water. Irrigated agriculture makesa substantial contribution to the growth in agriculturalproduction across many countries. Yet, agriculture can havesignicant impacts (both positive and negative) on waterecosystems, and both agriculture and water are becomingincreasingly vulnerable to climate change.

In most OECD countries, agriculture is the major consumerof water and a signicant source of diffuse water pollution.While agriculture often suffers the most from droughts andoods, in the case of oods, it can also help reduce theirimpact on the rest of the economy.

OECDs examination of these linkages focuses oneconomic and policy analysis, supported by economicand environmental data. Overall, OECD work is seekingto provide policy advice to governments that could helpto move agriculture onto a sustainable path in the overallmanagement of water systems.

Agriculture faces the enormous challenge of producingglobally almost 50% more food by 2030 and doublingproduction by 2050. This will likely need to be achieved

with less water, mainly becauseof growing pressures fromurbanisation, industrialisation andclimate change. In this context, itwill be important in the future forfarmers to receive the right signalsto increase water use efciencyand improve agricultural watermanagement, while preservingaquatic ecosystems.

In the OECD report SustainableManagement of Water Resources in

Agriculture, the OECD analysesthe challenges of moving towardsmore efcient management ofwater resources in agricultureand responding to growing fooddemands and the impacts ofclimate change.

The OECD workshop (Bogor, West

Java, Indonesia, December 2011) on

Sustainable water management for food

security: an international policy dialogue

on progressing water policy reform in

agriculture with focus on Indonesia

brought together a range of experiences

that might help Indonesia and other

countries in the region to progress their

water policy reforms with respect to

agriculture.


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Did you know?

The overall economic, environmentaland social costs of agricultural water

pollution across OECD countries arelikely to exceed billions of dollarsannually.

The impact of OECD agriculture on water quality (mainly fromnutrients, soil sediments and pesticides) over the past decadehas been either stable or deteriorating, with only a few caseswhere signicant improvements are reported. Policy responsesto address agricultural water pollution have cost OECD

taxpayers billions of dollars annually and yet, efforts have stillfallen short.

Bioenergy production from agricultural feed stocks, especiallycereals and oilseeds, can have signicant impacts onwater quality and availability, but this can vary accordingto the location and practices adopted. Removal of thisform of support may contribute to more sustainable watermanagement in agriculture.

The OECD report Water Quality and Agriculture: Meeting thePolicy Challengeidenties the following recommendations toencourage the sustainable management of water quality inagriculture:

l Use a mix of policy instruments to address water pollution.

l Enforce compliance with existing water quality regulationsand standards.

l Remove perverse support in agriculture to lower pressureon water systems.

l Take into account the polluter-pays-principle to reduceagricultural water pollution.

l Set realistic water quality targets andstandards for agriculture.

l Improve the spatial targeting of policies toareas where water pollution is most acute.

l Assess the cost effectiveness of different policyoptions to address water quality in agriculture.

l Take a holistic approach to agriculturalpollution policies.

l Establish information systems to supportfarmers, water managers and policy makers.


Key links : http://www.oecd.org/tad/sustainable -agriculture http://www.oecd.org/tad/env/indicators
http://www.oecd.org/tad/sustainablehttp://www.oecd.org/tad/env/indicatorshttp://www.oecd.org/tad/env/indicatorshttp://www.oecd.org/tad/sustainable


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5Managing water for future citiesMore than half of the worlds population

resides in cities and urbanisationis projected to continue increasingto 2050 and beyond. Countries areconfronted with signicant challengesto securing nancially sustainablewater and sanitation services in theircities. This cannot be achieved in avacuum, and requires a concertedeffort, putting water supply andsanitation policies in the wider contextof institutional arrangements and water

resources management,

and strengthening theinterface between citiesand the surrounding ruralenvironment. The signicanturban water investmentsbeing made, or which needto be made, require bothOECD and partner countriesto think carefully about howto manage urban water cost-effectively and to learn fromthe experience of othersin addressing the demandand supply sides of theurban water managementchallenge.This has important

implications for householdaccess to water andsanitation services. It alsohas an impact on waterresources management in anumber of ways:


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l City-dwellers are increasingly competing with other waterusers for access to water resources.

l Cities are increasingly at risk of oods and droughts, witheconomic consequences for the management of urbanareas.

l Inadequate water quality results from insufcient,ineffective or poorly maintained wastewater treatmentinfrastructure.

l Cities can contribute to good water resources management,through their design and the infrastructures they relyupon (smart water systems, green roofs, more permeablesurfaces, etc.).

As a result, the way in which water is managed in citieshas consequences both for city dwellers and for the widercommunity. It dictates water availability (in both quantityand quality) up-stream and downstream for other users.It inuences the environmental, economic and socialdevelopment of territories and countries.

The OECD is contributing to improving urban watermanagement, focusing on three interrelated topics:

l Financing urban water . The OECD is developing policyguidance on how governments can effectively meet thenancial needs to maintain, renew and expand urbanwater infrastructure. Meeting such needs will requiremajor reforms to improve the economic and institutionalframework for water utilities and to enhance the enablingenvironment for investment.

l Eco-innovation and urban water . This issue focuses on therole of government policy in increasing eco-innovationin urban water delivery that is critical to the improvedmanagement of urban water. The work addresses policyblockages to the uptake of innovations, and identies

economic and regulatory policies that can encourage waterinnovations in cities.

l Urban-rural water interface . The work addresses thecritical issue of the linkages between cities and the broaderriver basin within which they are located, in terms ofthe linkages with agriculture, green infrastructure in thewatershed, institutional arrangements for watersheds andcities, impacts on biodiversity, and economic instrumentsfor managing water allocations.

The World Water Forum in Korea is envisaged as the keytarget for dissemination of the work.


6


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6Cross-cutting issuesWater security

Recent oods and droughts across the world highlight thethreats that water (or lack thereof) can cause to society. In2012, drought in the US nearly halved the contribution of theagricultural sector to US GDP over the 3rd Quarter. And the2011 oods in Thailand slashed the 4th Quarter GDP growth bya staggering 12%.

Water security is primarily about risk management. The OECDidenties four water-related risks: the risks of shortage, ofexcess water, of inadequate water quality, and of disruption offreshwater systems such as rivers, lakes and aquifers. Theserisks have to be addressed in a coordinated manner, as they

are interrelated: interventions to reduce one risk can increaseothers.

Managing these risks comes at a cost, including economic,environmental and social costs, as well as the opportunity costarising from foregone development opportunities. The issue ishow to improve water security at least cost to society.

The OECD report Water Security for Better Livesexplains why

governments must promote a risk-based approach to watersecurity. It proposes steps to implement the approach.The rst step is to help stakeholders dene acceptable levels ofwater risk. Decisions should rely on evidence (the likelihood ofrisks and their consequences), take account of societal valuesand consider the cost of security improvement. Sufcientexibility should be allowed so that levels of risk can beadjusted to changing situations. For instance, New York City isreassessing its ood protection level following Hurricane Sandy.

Did you know?

If scarcity prices had been introducedin Sydney, Australia, the prematureconstruction of a costly desalinationplant would have been avoided.


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Policy objectives other than water security (for example foodsecurity, energy security, climate security, protecting nature)and the interrelated nature of water risks should be consideredwhen weighing the benets and potential costs to society of agiven level of water risk.

Once appropriate levels have been dened, the options areto either avoid, reduce, transfer or bear risks. For example,instead of building more infrastructure to reduce their oodrisks, cities may prefer to transfer the risks to farmers andpay them for using their land as oodplains. Governmentswould benet from considering a policy mix to reducehazards and limit exposure and vulnerability in orderto achieve acceptable levels of risk at the least possible

economic cost. Economic instruments can play an importantrole, as they can fundamentally alter the incentives facingwater users, provide explicit signals about the likelihoodand potential cost of water risks, and provide nancing tosupport actions to offset risks.

The management of water security is a particularly difcultchallenge for governments, as it cuts across a number ofdifcult policy areas, in and out of the water box. To promoteawareness of this complex issue, rene our knowledgeof how it can be addressed and engage with a variety ofstakeholders, the OECD is happy to join with the GlobalWater Partnership and set up a high level dialogue on watersecurity and sustainable growth that will report to the WorldWater Forum in 2015.



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Managing water for green growth

Sustainable water use is an essential driver of green growth.On the one hand, a lack of a sufcient quantity of adequatequality water can signicantly hinder growth. On the other

hand, good water management can generate huge benetsfor health, and for agricultural and industrial production. Itcan also preserve ecosystems and the watershed servicesthey provide, thereby avoiding the enormous costs that canbe imposed by ooding, drought or the collapse of watershedservices.

The OECDs Green Growth Strategy provides an actionablepolicy framework to foster economic growth and development,

while ensuring that natural assets continue to provide theresources and environmental services on which our well-beingrelies. Water efciency and water demand management areessential ingredients for green growth. The OECD is reviewingthe experience of countries on these issues and developingrecommendations on facilitating the implementation of acoherent policy framework. The forthcoming report ManagingWater for Green Growth compiles the main messages in acoherent policy framework.

A key aspect of green growth is the role of eco-innovation.Tapping alternative water sources (e.g. rain and stormwater, used water, and desalinated sea or brackish water)or encouraging successive uses of water can be a low-cost

Key elements of water andgreen growth

l An explicit green growth strategy, whichguides decisions on water allocation and

investment. It should cover such issues asland use, biodiversity, energy and agriculture,the social dimension of growth and water-related risks.

l Institutions and regulations (includingallocation regimes) that support thedevelopment and diffusion of innovativetechniques and water uses.

l Incentives to adopt water efcient techniquesand practices.

l Promotion of infrastructure design andnancing arrangements that support changesin water use and the development of newuses.

l Robust data on hydrology (including theinterplay between surface and groundwater)and on water use (including return ows).

Key link :www.oecd.org/greengrowth
http://www.oecd.org/greengrowthhttp://www.oecd.org/greengrowth


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response to alleviating water scarcity. Additional benets caninclude saving energy and cutting investment requirementsand operation and maintenance costs. However, there arealso some risks attached to using these approaches, notablypollution of agricultural land or health risks.

OECD work on eco-innovation for water explores economicand policy issues associated with the use of alternativewater resources and innovative technologies, such as smartwater systems. Case studies of country experiences withthese approaches are also examined.


Water and climate change adaptation

Climate change is reshaping the future for freshwater. Moretorrential rains, oods and droughts can be expected inmany areas. Changing precipitation patterns are shifting

rainy seasons and affecting the timing and quantity ofmelt water from snow pack and glaciers. Impacts on waterquality can be expected and freshwater ecosystems areespecially vulnerable. Climate change also adds considerableuncertainty to the management of water resources.

Reducing the adverse consequences and costs of climatechange and tapping into any opportunities will requireadjusting to new circumstances that is, adaptation.

Adaptation is not about maintaining the status quo at allcosts its about better managing water risks the risksof shortage (including drought), excess (including ood),inadequate quality, and disruption to freshwater systems.The OECD report Water and Climate Change: Policies to NavigateUncharted Waters sets out a risk-based approach to improvewater security in a changing climate. It provides policyguidance to prioritise action and improve the efciency,timeliness and equity of adaption decisions.

The OECD recently surveyed experience on water andadaptation across all 34 member countries and the EuropeanCommission to take stock of progress and collect examplesof good practice. Individual country proles are available at:www.oecd.org/env/resources / waterandclimatechange.htm.
http://www.oecd.org/env/resourceshttp://localhost/var/www/apps/conversion/tmp/scratch_3/waterandclimatechange.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_3/waterandclimatechange.htmhttp://www.oecd.org/env/resources


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The survey reveals nearly all countries project increasing waterrisks due to climate change. Extreme events (e.g. oods and/ordroughts) are cited as a primary concern by 32 countries, whilewater shortage is a key issue for 23 countries. Water quality isa key concern for 15 countries, while impacts on water supplyand sanitation were agged by 16 countries. For 13 countries,impacts on freshwater ecosystems were highlighted. Thesurvey reveals that OECD countries are making progress onknowing the risk, by building the scientic evidence baseand disseminating information on projected impacts andpossible responses. However, much more could be done toscale up efforts to better target water risks by reviewing levelsof acceptable risk and to manage these risks by consideringthe full range of strategies and policy options. Only a handful

of countries have begun to tackle the issue of nancingadaptation for water.

The OECD report also highlights the benets of adaptivegovernance and exible water policy and nancing approaches.In particular, there is potential to scale-up the use of well-designed economic instruments water trading, efcientwater pricing, ood insurance schemes in addition to cost-effective ecosystem-based adaptation and green infrastructureapproaches. These instruments can provide exibility andminimise the cost of adjusting to changing conditions.

Did you know?

Water is theprincipal mediumthrough whichclimate changeimpacts on naturaland human systemswill be felt.


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Policy coherence: water, energy, agriculture andthe environment

Water policies intersect with a wide array of sectors,especially energy and agriculture, and are implementedat various geographical scales, from local to international.Thus, policy coherence is essential. However, tensions mayarise from real or perceived trade-offs between variouspolicy objectives - for instance, between food security andwater productivity. Inefciencies may result from subsidiesthat have negative impacts on water, as in the case of energysubsidies for groundwater abstraction by farmers.

Resolving these tensions requires a global perspective.

For instance, freer trade in agricultural commodities andthe reform of farm support policies in OECD countries canalleviate some of the tensions between food security andwater productivity at domestic level. Policy co-ordination isalso required. The linkages between the policy areas haveto be considered early on in the policy making process. Forexample, when countries set biofuel production targets,there is a need to factor in potential consequences for futurewater withdrawals.

OECD work on policy coherence examines the policychallenges at the intersection between water, energy andagriculture. The OECD report Policy Coherence between Water,Energy and Agriculture (forthcoming) examines how such

challenges can be tackled and identies options to enhancepolicy coherence. Further insight is expected to derive fromthe Global Forum on Environment that the OECD organiseson the Water-Energy-Food Nexus, on 27-28 November 2014in Paris. The Forum will focus on projections and scenarioanalysis for the nexus, on nancing and investment, and ongoverning the nexus to make reform happen.

Did you know?

According tomarket insightsfrom Global WaterIntelligence, 50%of the worldsmajor industrialcompanies and25% of majorcities will considerwater reuse in theperiod 2005-15.

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7Making water reform happenOECD analyses conrm that water management needs to

change in most OECD and non-member countries: ercercompetition to access the resource puts more pressureon allocation regimes; more uncertainty about futureavailability of water challenges the way water services andinfrastructures are designed and operate; new technologiesand innovative management practices generate opportunitiesto deliver better services at least cost for the community.Water governance needs to adapt to better reach out tocommunities which behaviour affects water demand and

availability (farmers, city dwellers, energy suppliers) and toengage stakeholders in complex policy decisions.

Participants at the OECD Global Forum on Environmentin October 2011 drew insights on factors that can eitherdrive or block water policy reforms. These include the roleof crises in catalysing reform; the importance of settingpriorities; sequencing and political leadership; the role ofinfrastructures, markets and nancing; regulatory oversight;private sector participation.

The OECD is committed to supporting governments in theirefforts to reform policies that inuence the availability anduse of water. OECDs analytical work provides the insightand evidence-base to build the case for reform, drawing oninternational best practice. In addition, the OECD co-operates

with a variety of countries on concrete reform projects. Thisis done in the context of national policy dialogues on water,a process supported with robust analyses, that facilitatesthe design and implementation of policy reforms. In turn,the pragmatic, hands-on experience gained through theseprocesses informs OECDs analytical work.


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National policy dialogues

OECD has worked directly with a number of countries tosupport National Policy Dialogues, helping to make waterreform happen. National Policy Dialogues are a structuredprocess for stakeholder engagement supported by robustand tailored analytical work and lessons learnt frominternational experience. For such policy dialogues to beeffective, expertise is needed to make complex technicaland non-technical choices and to undertake comprehensiveoptions assessments (e.g. economic and environmentalimpact assessments). OECD has accumulated experiencewith National Policy Dialogues in a range of countriesfocussing on various elements of water policy reform,

including nancing and pricing, governance, allocation,water security and private sector participation (using thechecklist for public action, p.19).

National Policy Dialogues in Eastern Europe, theCaucasus and central Asia (EECCA)

The Task Force for the Implementation of the EnvironmentalAction Programme (EAP Task Force) was established in

1993 by Environment ministers with a view to assistenvironmental reconstruction in transition economies,in the framework of the Environment for Europe process.The EAP Task Force Secretariat is located at the OECD.This work is part of the EECCA component of the EU Water

Initiative, for which the OECD isa strategic partner, together withUNECE. The work is nanced by theEuropean Commission and regularcontributions by donors (the CzechRepublic, Finland, Germany, Norwayand Switzerland in particular).

The overall objective of the EAPTask Forces work on water is tosupport on-going reforms of waterpolicies in EECCA countries. Theoutcomes of this work include:(i) contribution to achieving

the Millennium DevelopmentGoals on water and sanitation,so that good quality water andsanitation services are deliveredreliably, sustainably and at leastcost to the population; and (ii)systematic use by EECCA countriesof economically, nancially andenvironmentally sound practices

of water resources management,including adaptation to climatechange.

Did you know?

Articially low watertariffs hurt the poor,as they preventthe developmentof reliable publicservices.

Affordability issuesare a seriousconcern in all EECCAcountries.They are betteraddressed through

targeted socialmeasures thanthrough cheapwater for all.

Key link : http://www.oecd.org/environment/outreach /

http://www.oecd.org/environment/outreachhttp://www.oecd.org/environment/outreach


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The OECD works with EECCA governments on two areas:

l Strengthening the economic and nancial dimensionsof water management, including adaptation to climatechange. The OECD works with water agencies at bothnational and river basin levels to enhance the economicefciency and nancial realism of water policies, includingwater management plans or strategies for water supplyand/or sanitation. This leads to recommendations on thereform of economic instruments for water management.

l Strengthening institutions forwater supply and sanitation. Thepolicy dialogues focus on selectedinstitutional issues where theEAP Task Force has a comparativeadvantage: overcoming excessivefragmentation of water supply andsanitation systems, business modelsfor rural sanitation, or private sectorparticipation.

Tools for strategicnancial planning thathave facilitated reformsin EECCA include:

l Strategic nancialplanning forwater supply andsanitation at nationalor regional level.

l Financial planningtool for water utilities.

l Multi-yearinvestmentplanning tool formunicipalities.

l Guidelines for thedevelopment ofperformance basedcontracts for water

utilities.

l Toolkit forbenchmarking waterutility performance.


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Supporting the implementation of Mexicos 2030Water Agenda

Mexicos 2030 Water Agenda, designed by the National WaterCommission of Mexico (CONAGUA), advocates for a newparadigm for more efcient management of water resourcesand services.

The OECD worked with Mexico to provide evidence-basedassessment, analytical guidance, and customised policyrecommendations in support of its water policy reforms.The process was based on OECD tools, methodologies andframeworks, and involved high-level peer reviewers andexperts from Australia, Brazil, Italy, and the United Kingdom.

Did you know?

The Mexican government is expectedto invest 51 billion pesos annually overthe coming twenty years to meet thewater reform challenge.



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The process was useful to engage stakeholders, particularlyas the Head of State and senior ofcers at the Mexican WaterCommission changed in the course of the project. The report:

l Suggests good practices in response to the institutionaland territorial fragmentation.

l Sheds light on good practices within Mexico (at river basin,aquifer level) and internationally for truly integrated waterresources management.

l Suggests good practices to make the most of economicinstruments.

l Identies challenges related to key regulatory functions forservice provision, and suggests options for improvement

and potential trade-offs based on the experience ofcountries with similar issues.

The report Making Water Reform Happen in Mexico was handedover to the President of Mexico right after his election toserve as a reference for major policy reforms. It is also beingused by donors to target their co-operation.

Key link :

http://www.oecd.org/gov/regional -policy/ makingwaterreformhappeninmexico.htm

National Water Policy Dialogue in the Netherlands

Two-thirds of the Dutch territory, more than half of thepopulation and two-thirds of the economic activity areat risk of ood. As a result, water management has long

been a national security issue for The Netherlands. Dueto this unique situation, and centuries of concerted effortand dedicated ingenuity to keep feet dry, the Dutch havebecome a global leader in water management.

http://www.oecd.org/gov/regionalhttp://localhost/var/www/apps/conversion/tmp/scratch_3/makingwaterreformhappeninmexico.htmhttp://localhost/var/www/apps/conversion/tmp/scratch_3/makingwaterreformhappeninmexico.htmhttp://www.oecd.org/gov/regional


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However, in the face of broader administrative reforms, scaltightening and increasing water challenges due to climatechange, a number of key questions have emerged: how t isthe current system to meet future challenges? Are the currentwater governance and institutional arrangements effectiveand resilient? Is the Dutch society willing and able to pay therising costs of water management? Can the Dutch polderapproach effectively address issues related to the quality ofthe rivers and lakes and cope with increasing risks of bothoods and scarcity in the country?

To shed light on these questions, the OECD-Netherlands PolicyDialogue on Water Governance was set up. The nal report washanded over to the Minister of Infrastructure and Environment

who forwarded it to members of parliament. The report agsissues which could shape an agenda for future water policiesin the Netherlands.

Did you know?

Brazil has 12% of worlds total wateravailability, most of which sits in the sparselypopulated Amazon, while populated and

economically developed areas are facingproblems of scarcity. The State of So Paulo,where one-fth of Brazils population lives andone-third of its economic activities take place,is suffering the worst drought since recordsbegan in 1930.

National Water Policy Dialogue in Brazil

Water is abundant in Brazil, but unevenly distributed acrossregions and users. Brazil faces at the same time severedroughts and overabundance of water (drought in So Pauloregion while the worst oods occur in the Amazon region).Future economic, demographic, and climate trends makethese issues more stringent, as they affect water availabilityand demand.

Current tensions and future trends show that business asusual cannot continue. They suggest that, although importantreforms have been carried out in the past 15 years andremarkable progress has been achieved, prevailing ways ofmanaging water in some basins may fail to contribute tonational priorities. They generate risks for water users andthe wider community, including health risks. Opportunitiesare lost to create more value and welfare with the availableresource. These trends also generate unnecessary burden onpublic nance, distracting private initiative and building futureliabilities.

Two major concerns follow. First, how should water beallocated efciently and properly across categories of users?

Second, how can the governance system better articulatestate and federal governments priorities to improve capacityto address water challenges at different levels? The NationalWater Agency asked the OECD to engage in a water policydialogue to facilitate reform in these and related issues.

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8Reaching out to keystakeholdersThe OECD provides a forum in which

governments can work together toshare experiences and seek solutionsto common problems. We workwith governments to understandwhat drives economic, social andenvironmental change. We analyseand compare data to anticipatefuture trends. We set internationalstandards on a wide range of topics,

from agriculture and tax to the safetyof chemicals. OECDs main targetaudience is governments but we workwith business, labour and civil societyorganisations at national and locallevels.

As such, the OECD is well equippedto organise the debates and engagewith a variety of stakeholders. Thework on water, which cuts across theOrganisation, is regularly monitoredand reviewed by delegates in the

context of specialised Committees onEnvironment, Territorial Developmentand Agriculture. In order to reachout to a wider community, the OECDhas set up three dedicated networks,which complement the architectureof bodies involved in OECD work onwater:

l The OECD Water GovernanceInitiative (see page 17).

l The OECD Roundtable of Mayorsand Ministers. The Roundtablewas established in 2007 and

provides a forum to develop inter-governmental approaches forstronger, more effective urbanpolicy. The Roundtable met inMarseille in December 2013and focused on how nationalgovernments and cities can betterwork together to foster growthand well-being. Delegates at the

Roundtable play a topical role in thework on urban water management.

l The Network of EconomicRegulators ( see page 18).


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9Water indicatorsand dataThe availability of high-quality water information is crucial

for responsive and cost-effective water policies. The OECDprovides leadership in the development of indicators tomeasure performance, produces harmonised data and helpscountries improve their environmental information systems.Over the past decade, many countries have been upgradingtheir water monitoring systems and their data collectionefforts, supported with new information technologies andweb-based communication. A review of the informationWater stress, OECD countries

2009 or latest year available; water abstractions as % of total renewable resource

Note : Water stress below 10% = no stress; 10-20% = low stress; 20-40% = medium stress; above 40% = severe stress.Source : OECD Environmental data.

* The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the GolanHeights, East Jerusalem and Israeli settlements in t he West Bank under the terms of international law.

0

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20

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Central to OECD work are core environmental indicators to measureenvironmental progress. Two water-related indicators are: intensity ofuse of water resources (water stress) and wastewater treatmentconnection rates.



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With the rapid developments in water policy reform in many

countries, this lack of information has been brought intosharp focus and has meant that the implementation of waterpolicy initiatives often builds on scant data and information.To address this issue, the OECD held a workshop in Zaragoza,Spain (2010) on improving the information base to betterguide water resource management.

demands arising from OECD work,shows that important gaps still remain.The quality of water data currentlyavailable at national and internationallevel is insufcient to effectivelysupport integrated water managementand water policies.

Gaps in information on the economicand institutional aspects, for example,constrain the analysis of water policiesand their effectiveness. Informationon water resources and hydrologicalsystems, though available in many

countries, remains incompleteand often lacks coherence, thusconstraining the calculation of waterstress indicators.

0

10

20

30

40

50

60

70

80

% of t o t al p o p ul a t i on

1990 1995 2000 2005 2009

Secondary and/or tertiary treatment

Primary treatment

OECD population connected to wastewater treatment plants, 1990 -2009

Data exclude: Australia, Chile, Mexico,Slovak Republic and Slovenia.

Source : OECD Environmental data.



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Intensity of use of freshwater resources (both surface andgroundwater) is expressed as gross abstractions per capita,as a percentage of total available renewable freshwaterresources, including inows from neighbouring countries(see below) and as a percentage of internal resources. It hasto be noted that when measured at national level theseindicators may hide signicant variations at territorial level.

Wastewater treatment connection rates show the percentage ofthe national population actually connected to public wastewater treatment plants. The extent of secondary (biological)and/or tertiary (chemical) treatment provides an indicationof efforts to reduce pollution loads.

Future OECD work will build on and improve existingindicators, and possibly complement them with indicatorson pollution loads to water bodies and the intensity of use offreshwater resources at subnational level. The OECD is alsodeveloping water-related indicators to better monitor progresstowards green growth. They deal with resource productivity(water productivity), the stock of renewable resources(freshwater resources), environmental quality of life (accessto sewage treatment and drinking water), and economic

opportunities and policy responses (water pricing and costrecovery).

Did you know?

There are onlythree ways to coverthe costs incurredto supply safewater and propersanitation services.

Commonly referredto as the 3Ts,these are tariffs(revenues frompricing water-relatedservices), taxes (viabudgetary transfersand subsidies)and transfersfrom developmentassistance (paid byforeign tax payers).The steady streamof revenue from

these sources wouldopen the way forrepayable nancein the form of loans,bonds and equity.



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OECD (2014),Water Governance in Jordan This report assesses the maingovernance and nancingchallenges to private sectorparticipation (PSP) in the watersupply and sanitation sectorof Jordan, and provides waysforward to address them, based oninternational experience and OECDcompendium of principles and goodpractices.

DOI: http://dx.doi.org/10.1787 /9789264213753-en.

OCDE (2014),La gouvernance des servicesde leau en Tunisie

Ce rapport analyse les principauxds de gouvernance laparticipation du secteur priv (PSP)au secteur des services de leauet de lassainissement en Tunisieet suggre des recommandations

de politiques publiques pour lessurmonter, bases sur le corpusanalytique et de bonnes pratiquesde lOCDE.DOI: http://dx.doi.org/10.1787/9789264213807 -fr.

OECD (2014), Climate Change, Water and Agriculture: Towards resilient systems

This report reviews the mainlinkages between climate change,water and agriculture as a meansto identifying and discussingadaptation strategies for better useand conservation of water resources.It aims to provide guidance todecision makers on choosing anappropriate mix of policies andmarket approaches to address theinteraction between agriculture andwater systems under climate change.DOI: http://dx.doi.org/10.1787/9789264209138 -en.

Key water publications

http://dx.doi.org/10.1787http://dx.doi.org/10.1787/9789264213807http://dx.doi.org/10.1787/9789264213807http://dx.doi.org/10.1787/9789264209138http://dx.doi.org/10.1787/9789264209138http://dx.doi.org/10.1787/9789264209138http://dx.doi.org/10.1787/9789264209138http://dx.doi.org/10.1787/9789264213807http://dx.doi.org/10.1787/9789264213807http://dx.doi.org/10.1787


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OECD (2013),Water Security for BetterLivesThe report explains whygovernments must take a risk-basedapproach to water managementand proposes steps to helpimplement this approach. TheOECD proposes that water securityis about managing water risks,including risks of water shortage,excess, pollution, and risks ofundermining the resilience offreshwater systems (rivers, lakes,aquifers). Two observations follow.

First, water security comes at a cost.Second, protecting against one setof risks can enhance other risks.The risk-based approach has beenused to review initiatives takenby OECD countries to adapt watermanagement to climate change, orto inform policy debates on watermanagement in selected countries.

DOI: http://dx.doi.org/10.1787/9789264202405 -en.

OECD (2013),Water and Climate Change Adaptation: Policies to NavigateUnchartered WatersThis report sets out the challengefor freshwater in a changing climateand provides policy guidance on howto navigate this new waterscape.It highlights the range of expectedchanges in the water cycle and thechallenges of making practical,on-site adaptation decisions forwater. It offers policymakers a risk-based approach to better know,target and manage water risks

and proposes policy guidelines toprioritise action. The report alsodraws out good practice from asurvey of policies on water andadaptation across all 34 membercountries and the EuropeanCommission. Finally, the reporthighlights the benets of well-designed economic instruments,

ecosystem-based approachesand real options approaches tonancing.DOI: http://dx.doi.org/10.1787/9789264200449 -en.

http://dx.doi.org/10.1787/9789264202405http://dx.doi.org/10.1787/9789264202405http://dx.doi.org/10.1787/9789264200449http://dx.doi.org/10.1787/9789264200449http://dx.doi.org/10.1787/9789264200449http://dx.doi.org/10.1787/9789264200449http://dx.doi.org/10.1787/9789264202405http://dx.doi.org/10.1787/9789264202405


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OECD (2013),OECD Compendium of Agri-environmental IndicatorsThis second edition compilesindicators that monitor thecontribution of agriculture to theenvironment. It is part of OECD workon agriculture and the environment,with the key objective to use agri-environmental indicators as atool to assist policy makers. Thereport has three main sections: adescription of the policy and marketdrivers affecting the environmentalperformance of agriculture; anassessment of agri-environmentalperformance in specic domains;a review of recent use of the OECDagri-environmental indicators forpolicy monitoring and evaluation.The chapter on water covers waterresources withdrawals, irrigatedarea, and irrigation water applicationrates; and water quality (nitrates,

phosphorus and pesticides). DOI: http://dx.doi.

org/10.1787/9789264186217 -en.

OECD (2013), Making Water ReformHappen in MexicoThe report provides evidence-based assessment and policyrecommendations in support ofMexicos water reform. It analysesimplementation bottlenecks andidenties good practices in four keyareas considered as essential driversfor change in the water sector ofMexico: multi-level and river basingovernance; economic efciencyand nancial sustainability; andregulatory functions for water supplyand sanitation.DOI: http://dx.doi.org/10.1787/9789264187894 -en.

OECD (2013),Water Governance in theNetherlands: Fit for the Future?This report assesses the extent towhich Dutch water governance is tfor future challenges and sets out

an agenda for the reform of waterpolicies in the Netherlands. It buildson a one-year policy dialogue and issupported by robust analytical workand international best practice.DOI: http://dx.doi.org/10.1787/9789264102637 -en.

( )( )
http://dx.doi.org/10.1787/9789264186217http://dx.doi.org/10.1787/9789264186217http://dx.doi.org/10.1787/9789264187894http://dx.doi.org/10.1787/9789264187894http://dx.doi.org/10.1787/9789264102637http://dx.doi.org/10.1787/9789264102637http://dx.doi.org/10.1787/9789264102637http://dx.doi.org/10.1787/9789264102637http://dx.doi.org/10.1787/9789264187894http://dx.doi.org/10.1787/9789264187894http://dx.doi.org/10.1787/9789264186217http://dx.doi.org/10.1787/9789264186217


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OECD (2012), Environmental Outlook to2050The OECD Environmental Outlookto 2050 asks What will the nextfour decades bring? Based on joint modelling by the OECD andthe Netherlands EnvironmentalAssessment Agency (PBL), itlooks forward to the year 2050 tond out what demographic andeconomic trends might mean forthe environment if the world doesnot adopt more ambitious greenpolicies. It also looks at whatpolicies could change that picturefor the better. This Outlook focuseson four areas: climate change,biodiversity, freshwater and healthimpacts of pollution. These fourkey environmental challengeswere identied by the previousEnvironmental Outlook to 2030(OECD, 2008) as Red Light issues

requiring urgent attention. DOI: http://dx.doi.

org/10.1787/9789264122246 -en.

OECD (2012), A Framework for FinancingWater Resources Management A lack of nance for water resourcesmanagement is a primary concernfor most OECD countries. This isexacerbated in the current scalenvironment of tight budgets andstrong scal consolidation, as publicfunding provides the lions shareof nancial resources for watermanagement. This report providesgovernments with a framework toassess and strengthen the nancialdimension of water resourcesmanagement. It proposes a set offour principles to frame nancingstrategies for water management,with a specic focus on the potentialrole of economic instruments. Ithighlights implementation issues,which have to be addressed ina pragmatic way. Case studiesillustrate selected instruments and

how they can be used to nancewater resources management.


OECD (2012)W G i L iOECD (2012)B i M d l f R l


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OECD (2012), Meeting the Water ReformChallengeBuilding on the water challengesidentied by the OECD EnvironmentOutlook to 2050: The Consequences ofInaction, this report examines threefundamental areas that need to beaddressed whatever reform agendasare pursued by governments: nancingof the water sector; the governance andinstitutional arrangements that are inplace; and coherence between waterpolicies and policies in place in other

sectors of the economy. The reportprovides governments with practicaladvice and policy tools to pursueurgent reform in their water sectors.

DOI: http://dx.doi.org/10.1787/10.1787/9789264170001-en.


OECD (2012),Water Governance in Latin America and the Caribbean: A Multilevel ApproachThe report calls for more integratedwater policies and governancemechanisms that are context-specic,exible and benecial to the poor. Itprovides an institutional mapping ofthe allocation of water policy roles andresponsibilities in 13 LAC countries(Argentina, Brazil, Chile, Costa Rica,Cuba, Dominican Republic, El Salvador,Guatemala, Honduras, Mexico,Nicaragua, Panama, Peru). The reportthen evaluates the importance of 7multi-level governance gaps: mismatchbetween administrative and hydrologicalboundaries, lack of capacity at sub-national level, information asymmetry,diverging objectives between policyareas, under-nancing, sectoralfragmentation across ministries andpublic agencies, and poor accountability.

The report also highlights good practicesfor vertical and horizontal co-ordinationof water policy, and suggests guidelinesto better manage interdependenciesacross public actors within and outsidethe water box.

DOI: http://dx.doi.org/10.1787/10.1787/10.1787/978 9264174542 -en.

OECD (2012),Business Models for RuralSanitation in MoldovaThis report describes possibleapproaches to introducingsustainable business models forsanitation services in Moldova, withfocus on small towns and ruralsettlements.

OECD (2012)W t Q lit d OECD (2011) f
http://dx.doi.org/10.1787/10.1787/9789264170001http://dx.doi.org/10.1787/10.1787/9789264170001http://dx.doi.org/10.1787/10.1787/10.1787/9789264174542http://dx.doi.org/10.1787/10.1787/10.1787/9789264174542http://dx.doi.org/10.1787/10.1787/10.1787/9789264174542http://dx.doi.org/10.1787/10.1787/10.1787/9789264174542http://dx.doi.org/10.1787/10.1787/9789264170001http://dx.doi.org/10.1787/10.1787/9789264170001


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OECD (2012),Water Quality and Agriculture: Meeting the PolicyChallengeImproving water quality isconsistently ranked as a topenvironmental concern in OECDpublic opinion surveys. The keychallenge for policy makers inaddressing water quality issuesin agriculture is to reduce waterpollution while encouraging higherwater quality for recreational andother uses. This book examineslinking policies, farm managementand water quality. It looks at recenttrends and prospects for waterpollution from agriculture and theimplications of climate change.It assesses the costs and benetsof agricultures impact on watersystems, and presents case studies ofpolicy experiences from several OECDcountries and the European Union in

general. Finally the report provides aset of recommendations for countriesfor meeting the challenge ofimproving agricultural water quality.



OECD (2011),Ten Years of Water SectorReform in Eastern Europe, Caucasusand Central AsiaThis report evaluates how wellEECCA countries have done inensuring peoples access to adequatewater supply and sanitation servicessince their Economic, Finance, andEnvironment Ministers adoptedthe Almaty Guiding Principles tosupport such efforts in 2000. Besideslooking at trends in the technicaland nancial performance of thewater sector, the report analyses the

results of institutional reforms atdifferent levels of governance, as wellas nancing arrangements. Analysisfocuses mainly on urban areas, butsome of the challenges in rural areasare also examined.DOI: http://dx.doi.org/10.1787/9789264118430 -en.

OECD (2011)Meeting the Challenge of OECD DAC (2010)Financing Water and


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OECD (2011),Meeting the Challenge ofFinancing Water and Sanitation Toolsand Approaches, OECD, Paris.

OECD (2011),Benets of Investing in Waterand Sanitation: an OECD Perspective,

OECD, Paris.

OECD (2011), Water Governance in OECDCountries: A Multi-level Approach, OECD,Paris.

OECD (2010),Pricing water resources andwater sanitation services, OECD, Paris.

OECD (2010), Innovative Finance Mechanisms for the Water Sector, OECD, Paris.

OECD (2010), Sustainable Management ofWater Resources in Agriculture, OECD,Paris.

OECD (2010),Improving the informationbase to better guide water managementdecision making, Zaragoza, Spain.

OECD-DAC (2010), Financing Water andSanitation in Developing Countries: theContribution of External Aid, OECD, Paris.

OECD (2009), Private Sector Participation inWater Infrastructure, OECD Checklist for

Public Action, OECD, Paris.

This document and any map included herein are without

prejudice to the status of, or sovereignty over, any territory, to

the delimitation of international frontiers and boundaries and

to the name of any territory, city or area .

This work is published on the responsibility of the

Secretary-General of the OECD. The opinions expressed

and arguments employed herein do not necessarily reect

the ofcial views of the Organisation or of the governments

of its member countries.

Photo credits


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Photo credits

Front and b ack cover: Water: Dmytro Tolokonov / fotolia.com

Inside cover: Falling water: ingimage.com

Page 2: Water drop: ingimage.comPage 3: Hands cu pping water: silver-john /shutterstock.com

Page 4: Boy drinking from w ater pipe: africa924 / shutterstock.com

Page 5: Irrigation sprinkler wheel line: DianeGarcia / shutterstock.com. Water owing fr omDam (lake): d ed pixto / shut terstock.com .Running tap: ingimage.com

Page 6: Women carrying water: RCH / fotolia.com

Page 8: Swimming pool: ingimage.com

Page 9: Wa ter treatment plant: Antiksu /fotolia.com

Page 10: Waste water treat ment: JohnKasawa / shutterstock.com

P age 11: Irrigation system agriculture: REDAV / shuttersto ck.com . Polluted water: PinkShot /

fotolia.comPage 12: Paddyeld workers: SiegfriedSchnapf / fotolia.com

Pages 12-13: Songdo International Business District, South Korea: songdo.com

Pages 14-15: Severe drought: Galyna Andrus hko / fotolia.comDe-salination plant: Irabel 8 / dreamstime.com

Page 16: Glacier in Tierra del Fuego: Soizick de Tilly, OECDFlooding in Bangkok: Thor Jurgen Udvang / dreamstime.com

Page 17: Hydroelectric dam: Stanislav Tiplyashin / dreamstime.com

Page 18: Water aerating device: Jirapong Boonpoongha / dreamstime.com

Page 19: River in spate: Dmitry Naumov / shutterstock.com

Pages 20-21: Lake reections: ingimage.com

Page 20: Mexican open sewer: Juan Manuel Robledo / dreamstime.com

Page 21: Flooding in The Netherlands: Wessel Cirkel / dreamstime.comPage 22: Aquaduct: Ron Chapple / dreamstime.com

Page 22: Sewage treatment plant: Antikainen / dreamstime.com

Page 23: Aerial view of water treatment: Mariusz Szczgiel / fotolia.com

Page 24: Mountain stream: ingimage.com

Inside back cover: Woman pumping water: Andrew Biraj / Reuters


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