Climate sensitive water allocation systems and economic instruments.
Current water allocation regimes are largely shaped by historical preferences and usage patterns. They are therefore usually not well equipped to deal with the growing water needs and intensifying competition of the different water use sectors, the impacts of climate changes, especially water scarcity and/or shifts in societal preferences, such as increasing value placed on water related ecological services. It is therefore important to assess current water allocation systems in different regions and sectors and to develop pertinent water allocation models that are able to perform well under both average and extreme conditions and could demonstrate adaptive efficiency in order to adjust to climate conditions.
Actions under this topic should address ways to value water appropriately, taking into account the multiple and diverse values of water to different groups and sectors, and ways to develop appropriate tariffs and prices to ensure access to water which should be available and affordable to all, while also securing adequate pricing policies allowing for systematic renewal of water service infrastructure. Actions should develop and demonstrate in relevant river basins and sectors, innovative tools / instruments on intelligent water allocation schemes relevant for decision-making recommendations (e.g. on permits). The opportunities for developing water allocation schemes based on digital technologies should be explored.
The challenges for water allocation regimes, especially in developing countries, are also aggravated by weak water policies which contributes to structural water scarcity, increasing the risk of shortages for users and the environment. The interaction of policies, regulation and implementation mechanisms should be especially assessed, as well as, the interplay between conventional and non-conventional water resources (e.g. wastewater reuse, desalination, etc.).
Water allocation scheme in transboundary river basins should also be addressed with a view to developing an internationally accepted and standardised mechanism for allocation of water in cross-border river basins, by taking into account the various socio-economic and environmental disparities among these countries and making transboundary waters an area of cooperation rather than conflict.
Climate change impacts on freshwater resources can have significant impacts on agricultural production resulting in destabilising effects on agricultural markets, food security and other non-agricultural uses. Current water allocation regimes in agriculture should be reviewed in this context, with a view to developing the necessary combination of various adaptation measures, such as, water pricing, water use restrictions, improvement of water use efficiency, economic incentives, water reuse, shifting to less water-requiring crops and fallowing, etc., to cope with the reduction of water availability anticipated in climate change scenarios.
International cooperation with non-associated third countries with transboundary rivers is encouraged.
In general, the participation of academia, research organisations, utilities, industry and regulators is strongly advised, as well as civil society engagement whenever necessary, also aiming to broaden the dissemination and exploitation routes and to better assess the innovation potential of developed solutions and strategies.