Arjen Hoekstra UNESCO-IHE, Delft, Netherlands (ihe.nl)

1. The role of virtual water transfer in water management Arjen Hoekstra UNESCO-IHE, Delft, Netherlands (www.ihe.nl)

2. Virtual water content of products

3. Definition of virtual water Virtual water is the water ‘embodied’ in a product, not in real sense, but in virtual sense. It refers to the water needed for the production of the product.

4. Assessing virtual water trade flows Virtual water content of a crop Crop water requirement (m3/ha) / Crop yield (ton/ha) Virtual water content of a livestock product • Virtual water content of the live animal • Distribute this volume over the different products from this animal Virtual water trade flows Trade volume (ton/yr)  Virtual water content (m3/ton)

5. Basic data Global trade data United Nations Statistics Division, New York Virtual water content • Crop water requirements (m3/ha): CROPWAT (FAO) • Crop yields (ton/ha): FAOSTAT (FAO)

6. Virtual waterHistory of the concept 1993-94 Introduction of the concept by Tony Allan 12/2002 International Expert Meeting on Virtual Water Trade, UNESCO-IHE, Delft, Netherlands 03/2003 Session on ‘Virtual Water Trade and Geopolitics’ at the 3rd World Water Forum, Japan

7. Virtual waterState of current knowledge • Three global studies on virtual water trade. • Some national studies on virtual water trade (Middle East, North Africa, Southern Africa, Japan, China). • Knowledge on economic, environmental, social and cultural implications of current virtual water trade is nearly absent. • Knowledge on how to use virtual water trade as a means to relieve pressure on world’s water resourcesce is very weak.

8. Global virtual water tradebetween nations (1995-1999) [Hoekstra, 2003]

9. Global virtual water tradebetween nations (1995-1999) [Hoekstra, 2003] 30% wheat 17% soybean 15% rice 9% maize 7% raw sugar 5% barley

10. Global virtual water tradebetween nations (1995-1999) 34% bovine meat 16% bovine hides and leather 12% cow milk & milk products 10% swine and its products 8% live bovine 4% sheep and its products [Hoekstra, 2003]

11. Global virtual water tradebetween nations (1995-1999) [Hoekstra, 2003] = 16% of global water use!

12. Drawing a national‘virtual water trade balance’ • How much water goes into the country in the form of imported products? • How much water leaves the country in the form of exported products?

13. = 1/15 of available resources Total water withdrawals USA: 500 Gm3/yr Available water resources: 2500 Gm3/yr Virtual water balance of the USA Net export of virtual water: 164 Gm3/yr

14. = 1/4 of available resources Available water resources: 179 Gm3/yr Virtual water balance of the Thailand Net export of virtual water: 46 Gm3/yr

15. Virtual water balance of the Japan Net import of virtual water: 82 Gm3/yr

16. Virtual water balance of the China Net import of virtual water: 19 Gm3/yr Water withdrawal: 550 Gm3/yr Water availability: 2800 Gm3/yr

17. 2524 Evapotranspiration (ET) from non-agricultural area Precipitation 6152 China Real water balance (Gm3/yr) ET 3340 River discharge 2253 Blue water 2812 6152 Annual real water budget Green water use 816 Withdrawal 559 China Virtual water balance (Gm3/yr) Water footprint of China 1392 1409 Annual virtual water budget 60% green water 40% blue water Import virtual water 34 Export virtual water 17

18. National virtual water trade balances 1995-1999

19. Net virtual water export Net virtual water importTop-7 list of countriesTop-7 list of countries Gm3/yrGm3/yr USA 164 Sri Lanka 84 Canada 64 Japan 82 Australia 58 Italy 31 Argentina 52 South Korea 30 Thailand 46 Netherlands 25 India 34 Indonesia 23 France 22 China 19 ....... ...... Period: 1995-1999

20. Europe Virtual water Virtual waterexporters importers 1. France 1. Italy 2. Ukraine 2. Netherlands 3. Ireland 3. Spain ..... 4. Germany 5. Russia 6. Belgium-Luxembourg 7. Portugal ...... Net export: 44% of Rhône runoff Net import: 67% of Po runoff Net import: 36% of Rhine runoff

21. Virtual water trade balances of thirteen world regions (1995-1999) Arrows show trade flows >100 Gm3

22. Ranking of regions (1995-1999) Gross virtual water import Gross virtual water export Gm3 Gm3 Central-South Asia 1184 North America 1317 Western Europe 643 South America 415 North Africa 276 Oceania 363 Middle East 261 Southeast Asia 347 Southeast Asia 257 Western Europe 266 ....... ......

23. the virtual water concept:what is the practical use?

24. 1. Virtual water: an alternative source of water Many national economies depend on (net) import of virtual water. For the period 1995-99: Jordan 80% Italy 20% Netherlands 80% Egypt 20% Japan 40% South Africa 20% Tunesia 50% China 4%

25. 2. Virtual water trade: global water savings Much of the international virtual water trade takes place from nations where water productivity is relatively high to nations where water productivity is relatively low.  global real water saving! 450 billion m3/yr saving due to global food trade = 8% of global water use for crop production! [Oki et al., 2003]

26. 3. Virtual water trade: an additional means to improve water use efficiency

27. 4. Virtual water trade: an alternative to real interbasin water transfers Proposed large inter-basin water transfers: • China • India • South Africa • Spain Alternative: • Trade of water intensive products from water-rich to water-poor regions

28. 5. Virtual water storage: an alternative for dams [Renault, 2003]

29. 6. Calculation of national water footprints

30. Conclusion • 15-20% of the global water use is not used for domestic consumption but for export (in virtual form). • This is the global percentage; the situation strongly varies between countries. • The crude estimates show that it is very relevant to carry out virtual water analysis in any national or regional water policy study.

31. Future research agenda

32. Thank you