Charting a Path: Water and Canada’s Natural Resource Sectors - Discussion Paper

Annex I: Program Overview

The National Round Table on the Environment and the Economy (NRTEE) is undertaking a new research program on Water and Canada’s Natural Resource Sectors. 

The NRTEE will add value to the national water agenda by examining the relationship between the energy, mining, forestry and agriculture sectors and water sustainability in the context of changes in supply, availability and distribution flowing from climate change and rising economic demand. 

Throughout the two-year Program, the NRTEE will engage industry sector leaders, representatives of federal, provincial, territorial governments; academia; non-government organizations; Aboriginal and regional groups and, civil society as part of the research process. The following provides a snapshot of the Program. 

Purpose

• To identify the critical issues and opportunities associated with the water, natural resource and climate change interrelationship; and,
• Catalyze the design and implementation of new policies, approaches and mechanisms through which water can be managed to foster both ecosystem health and economic sustainability of the sectors. 

 

The Program is guided by the following three research questions:

• What are the current water quantity and quality impacts on the natural resource sectors and vice versa?
  
  
• How is/will the changing climate exacerbate existing water quantity and quality issues in Canada’s natural resource sectors?
  
  
• What mix of policy tools and approaches (e.g. ecological governance, technological, economic instruments, regulatory tools) would be most applicable to enable Canadian resource sectors – energy, mining, forestry, agriculture – to value water, and incorporate that value in their production processes thus contributing to enhanced economic sustainability, while concurrently minimizing aquatic ecosystem impacts?

Program Goals

• To profile current and projected water consumption patterns and sustainability issues by Canada’s principal natural resources sectors and the role and value of water within these sectors;
• To examine the impact of climate change on water availability, supply and distribution across Canada and its projected impacts on the sustainability of Canada’s principal natural resources sectors;
• To recommend to natural resources sectors and governments the adoption of new and/or adapted policies and innovative mechanisms/approaches to ensure sustainable water management.

Context

• The sustainability of Canada’s four selected natural resource sectors - energy, agriculture, forestry, and mining - is heavily dependent on the continued availability of water.  Two key drivers are concurrently affecting Canada’s water supply and distribution: rising consumption and climate change.  What this means for the future sustainability of these sectors is not yet clear.  Nor are ecosystem impacts of this dual driver well understood. 
  
  
• Under current climate circumstances, water use and consumption are not ecologically sustainable.  Water supplies in many areas of the country are already proving to be insufficient or unreliable to meet multiple and competing demands. Communities, farms, and industries have competing needs for surface and groundwater sources that degrade the supply.  Issues around scarcity and allocation have already emerged.  Water quantity and quality will be further stressed as demand grows and the impacts of climate change increase.
  
  
• Climate change adds even greater uncertainty over supply as revealed through recent climate change research.  A comparison of total annual water renewal rates versus total annual demands puts Canada in the top tier of countries whose renewable supplies far exceed its current water-use demands. This view of abundance masks other realities regarding the ready availability of these resources for human use.
  
  
• With the Canadian economy highly based on the production and export of natural resources, understanding the role water plays, its value as part of the resource development process; and implications of climate change on the security of supply, is critical.  Equally important is the need for a better understanding of the ecological impact of the natural resource sectors on water resources in the face of the changing climate as economic growth is predicated in part on the ready availability and sustainability of water resources. 
  
  
• Canada largely undervalues its water resources and as a result most Canadian companies do not factor water’s economic or ecological value into production costs.  An opportunity exists to address this policy issue and explore tools that could stimulate greater production efficiencies and reduce risks associated with the changing landscape of water. Environment Canada estimates that water contributes $7.5 to $23 billion annually to Canada's national economy, yet these figures only relate to the ‘direct’ benefits of water.  It should be noted that this figure remains speculative, and is illustrative of water’s significant contribution to the Canadian economy.
  
  
• It is because of these issues, and the need for change at all jurisdictional levels and across sectors that the NRTEE has chosen to delve into this area of importance to both our natural environment and our economy. 

Research will examine:

• Which production processes within the energy, mining, forestry and agriculture sectors are dependent on water;
• How the resource sectors are influencing water sustainability throughout the extraction and development process and their overall aquatic ecosystem impacts;
• The current and anticipated impacts of climate change on water supply, availability and distribution and implications for the natural resource sectors.
• How the current policy and governance tools and approaches are affecting resource development practices and associated water consumption and use;
• How water resources could/should be valued in terms of its role in natural resource production and link with economic instruments as conservation tools
• What mix of policies, economic instruments, and approaches (e.g. integrated resource management, full-cost accounting, pricing) would be conducive to triggering more efficient water consumption and use; and reduce environmental impacts; and,
• Highlight issues and possible solutions using a case study approach within a specific watershed.

Process

An Expert Advisory Committee (EAC), a NRTEE Water Sub-Committee, and a “virtual” team of experts provide guidance and input into the Program.  Chaired by a NRTEE member, the EAC’s members are a combination of experts and stakeholders.  Its role is to contribute substantively to the Program, assessing research, providing direct input, and validating the key findings throughout the process. 

The NRTEE Water Sub-committee guides the Program, taking into consideration the EAC’s input. The virtual team of experts will be drawn in as needed on an individual basis depending on the issue areas being explored.   

Program Phases (subject to adaptation as the program evolves)

Phase l – Scoping and Program Initiation
November 2008 – March 2009
Deliverables:

• Identification of priority issues and refinement of scope through commissioned and in-house research, consultations and an expert/stakeholder workshop.

Phase ll - Research and Consultation: Key Issues
March 2009 – December 2009
Deliverables:

• Report on key issues
• Case Study: Initial findings

Phase lll – Policy Development and Recommendations
January 2010-December 2010
Deliverables:

• Final Report

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