Climate Change, Water and Food Security in the MENA Region: An Empirical Analysis Slim Zekri workshop on: Trade, WTO and Food Security 21-22 March 2016 SQU, Muscat, Oman Definitions Climate change is a change in the statistical properties of the climate system when considered over long periods of time. Climate change my be caused by human activity (Global Warming) or as part of Earth's natural processes (changes in earth orbit, change in solar activity, volcanic eruptions). There is a scientific consensus that climate change is occurring, and that human activities are the primary driver (IPPC, 2014. “ doing nothing will cost much more than taking action now”) . Green House Effect • Manifestation of climate change • • • • Changing precipitations patterns (frequency of extreme weather conditions) Rising temperature Increases in ocean temperatures and sea level Melting of glaciers and sea ice (arctic ocean) • Global warming is essentially the result of the human induced emissions of Green House Gases- GHG (i.e. Dioxide of carbon, Methane, Nitrous Oxide, ozone) • The Green House effect: is the process which results in rising earth temperature due to the increase of heat –trapping green house gazes in the atmosphere. • Green house gases emissions is essentially through fossil fuel burning WHAT IS COP21/CMP11? CONFERENCE OF PARTIES At the Paris climate conference (COP21) in December 2015, 195 countries adopted the first-ever universal, legally binding global climate deal. The agreement sets out a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C. The agreement is due to enter into force in 2020. Mitigation: reducing emissions Governments agreed Before and during the Paris conference, countries submitted comprehensive national climate action plans. These are not yet enough to keep global warming below 2°C, but the agreement traces the way to achieving this target. ◦ a long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels; ◦ to aim to limit the increase to 1.5°C, since this would significantly reduce risks and the impacts of climate change; ◦ on the need for global emissions to peak as soon as possible, recognising that this will take longer for developing countries; ◦ to undertake rapid reductions thereafter in accordance with the best available science. Transparency and global stocktake Governments agreed to ◦ come together every 5 years to set more ambitious targets as required by science; ◦ report to each other and the public on how well they are doing to implement their targets; ◦ track progress towards the long-term goal through a robust transparency and accountability system Governments agreed to strengthen societies' ability to deal with the impacts of climate change; provide continued and enhanced international support for adaptation to developing countries Adaptation The agreement ◦ recognizes the importance of averting, minimizing and addressing loss and damage associated with the adverse effects of climate change; ◦ acknowledges the need to cooperate and enhance the understanding, action and support in different areas such as early warning systems, emergency preparedness and risk insurance. Loss and damage Developed countries will support climate action to reduce emissions and build resilience to climate change impacts in developing countries. Developed countries intend to continue their existing collective goal to mobilise USD 100 billion per year until 2025 when a new collective goal will be set. Support Agriculture and Climate change Reducing emissions from agriculture will be imperative as it will be impossible to stay within either a 1.5 or two degree C target if agriculture does not contribute to emissions reductions. Countries want to take action on adapting agriculture and reducing emissions from farming – but funds are not yet there ◦ Considerable finance is needed for agricultural adaptation and mitigation by Least Developed Countries (LDCs). At leastUSD 5 billion annually are needed. The Paris Agreement commits developed countries to set a new collective financing goal of at least USD 100 billion per year, “taking into account the needs and priorities of developing countries” but does not include binding requirements on financial contributions by individual countries CC & agriculture: general facts and trends CC will affect food security through a variety of channels ◦ Direct impact on agricultural production (reduction in yield and area cultivated because of reduction in rainfall and higher temperature) and availability of water Indirect impact through higher import prices of food and changes in the cost of energy and agricultural inputs. MENA will face large challenges in countering the adverse impacts from CC because of the already limited resources CC will likely further increase net food import demand in the region. 000 MT of cereal (including feed) Projected food demand and production in the Arab region without climate change 160000 Demand 120000 Production 80000 40000 2000 2010 Source (WB,IFAD,FAO,IFPRI (impact model) 2020 2030 Approaches to measure climate change effects Three models Agronomic models Agro-economic models Ricardian models Models are based on hypotheses on farmers’ behavior and response to climate change (adaptation) Agronomic-economic models Crop models using controlled experiments (lab or field) in which crops are grown under different climate and levels of carbon dioxide Farming methods are not allowed to vary across experimental conditions The yields are then entered into-economic models that predict aggregate crop outputs, prices and net revenues Agronomic models have not examined efficient adaptation Their results may overstate the impact of /damage from climate change Adaptation to climate change Adaptation involves a change in agricultural practices in response to a climate conditions ◦ Change in management practices (change of time of sowing and harvesting, intensification of inputs) ◦ Change in crop mix ◦ Introduction of new varieties Adaptation assumes that farmers have access to alternatives practices and technologies practiced elsewhere The Ricardian approach Draw on the work by Ricardo that land values reflect a site’s productivity Cross sectional approach (across countries) measuring the contribution of environmental factors to farm income The variation of climate across these countries are wide By estimating the economic performance (farm land value/net income)of farms across a range of climate, we can measure climate sensitivity Advantage of the Ricardian approach is its ability to incorporate the change farmers would make to adapt their operations to a warmer climate disadvantage: experiments are not carefully controlled across farms Impact of Climate Change on Oman’s Agricultural Sector Slim Zekri Dept. Natural Resource Economics Sultan Qaboos University Climate Change Vulnerability and Adaptation Assessment in Oman Ministry of Environment and Climate Affairs and UNEP IRRIGATED LAND: FACTS & FIGURES 70% of the irrigated land is located in Asian countries Groundwater is a better resilient resource and buffered from high evaporation and is a critical and an important reserve in times of shortages, this feature is of special attention in dry spells. This means that groundwater under drought conditions becomes an even more stressed resource because of the strong dependency irrigation has laid on it Role & IMPORTANCE OF GROUNDWATER GROUNDWATER GLOBALLY • • • Groundwater plays a substantial role in water supply, in ecosystem functioning and human well-being. Groundwater sustains the base-flows of rivers and important aquatic ecosystems Groundwater supplies are diminishing, with an estimated 20% of the world’s aquifers being over-exploited (Gleeson et al., 2012), leading to serious consequences such as land subsidence and saltwater intrusion in coastal areas (USGS, 2013) Agriculture accounts for 70% of global freshwater withdrawals. OTHER SOURCES 50% GROUNDWATER FOR DRINKING 50% 50% population used GW for Drinking Purpose. Worldwide, 2.5b people depend on groundwater resources for their basic daily water needs WATER FOR IRRIGATION Other sources 57% GROUND WATER 43% WATER ISSUES IN THE ARAB WORLD MENA countries will face large challenges in countering the adverse impacts from climate change because of the already limited resources ESTIMATES OF OVERABSTRACTION OF RENEWABLE GW FOR ARAB COUNTRIES COUNTRY Reference year Total volume Km3/year Over-abstraction ALGERIA 2000 1.2 Km3/year % of Total 0.145 12 JORDAN 2000 2003 99-2000 2005 2003 2005 2000 0.5 0.24 1.28 3.68 1.15 8.34 1.21 0.225 0.09 0.76 0.54 0.60 3.44 0.175 45 38 60 15 52 41 14 2001 2.4 1.4 58 LEBANON LIBYA MOROCCO OMAN SYRIA TUNISIA YEMEN Effects of CC on GW and Agr: METHODOLOGY Farming in arid regions is water dependent ◦ Thus any change in climate that leads to change in the supply of irrigation water will be of significance to agriculture Effects of Higher Temperatures on Agriculture Higher temperatures Higher Evapotranspiration Higher crop water requirements Limited water resources Crop yield decreases & Gross profit decreases IMPACT OF HIGHER TEMPERATURES ON THE AGRICULTURAL SECTOR Based on Al-Jouf, Saudi Arabia’s CROPWAT model. Adjusted the results for Oman’s cropping pattern ◦ Production Function ◦ Water prices • By 2050 the additional crop water requirement for irrigation will reach 6.09% or 0.15% per year due to the increase in evapotranspiration. • The GW available is limited. Farmers will have to irrigate less their crops (deficit irrigation). Consequently on average each Feddan will have an irrigation water deficit of 464 m3 by year 2050. • Average economic loss due to increased evapotranspiration and deficit in irrigation is thus equal to 0.15% (increased crop water requirements times 1.92 Rials/Feddan, which is equal to 0.288 Rilas/Feddan every year in a cumulative way. As compared to surface water, groundwater’s relation to climate change is considered more complex and challenging Most productive agricultural lands in Oman are located in the coastal areas of the Batinah and Salalah Aquifers in these two coastal areas will be affected by sea level rise 2 scenarios based on the numerical simulation on the effects of climate change and sea level rise on Jamma‘s aquifer until 2050 and 2070 based on Al Maktoumi et al. (2015) • • • Gross profit per hectare is 1089 Rials on average for a farm accessing groundwater with salinity lower than 1.5 g/L Gross Profit goes down to 431 Rilas/feddan if the groundwater salinity is comprised between 5 and 10 g/L. Beyond 10 g/L there is no possibility to grow food crops and gross profit is then nil (OSS, 2012) 2,000,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 Total Gross Profit without CC 400,000 Total Gross Profit with CC RCP2.6 2050 200,000 2010 2020 2030 2040 2050 2060 Year 2,000,000 1,800,000 Gross Profit in Rials Gross Profit in Rials 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 Total Gross Profit without CC 200,000 Total Gross Profit With CC RCP8.5 2050 2010 2020 2030 2040 Year 2050 2060 2,000,000 1,800,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 Gross Profit without CC 200,000 Total Gross Profit with CC RCP2.6 2070 2000 2020 2040 2060 Year 2080 2,000,000 1,800,000 Gross Profit in Rials Gross Profit in Rials 1,600,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 Gross Profit without CC 600,000 400,000 Total Gross Profit With CC RCP8.5 2070 200,000 2010 2020 2030 2040 2050 Year 2060 2070 2080 800 724 700 600 500 495 495 Rials 400 300 200 100 0 Annual Equivalent Annual Equivalent Annual Equivalent Gross Profit without Gross Profit with CC Gross Profit with CC CC OR/feddan RCP2.6 2050 RCP8.5 2050 OR/feddan OR/feddan 800 724 700 600 Rials 500 428 422 400 300 200 100 0 Annual Equivalent Annual Equivalent Annual Equivalent Gross Profit without Gross Profit with CC Gross Profit with CC CC OR/feddan RCP2.6 2070 RCP8.5 2070 OR/feddan OR/feddan 800 710 700 600 500 400 295 300 293 163 200 157 100 0 Gross Profit without CC OR/feddan Gross Profit with Gross Profit with Gross Profit with Gross Profit with CC RCP2.6 in CC RCP8.5 in CC RCP2.6 in CC RCP8.5 in 2050 OR/feddan 2050 OR/feddan 2070 OR/feddan 2070 OR/feddan 120% 100% 100% 80% 60% 41% 41% 40% 23% 22% 20% 0% Gross Profit without CC Gross Profit Gross Profit Gross Profit Gross Profit with CC RCP2.6 with CC RCP8.5 with CC RCP2.6 with CC RCP8.5 in 2050 in 2050 in 2070 in 2070 1. Allocating the beach front agricultural land to other activities in order to reduce the pumping 2. Changing the Policy: Allocating water rights and water quotas to farmers and monitoring groundwater abstraction 3. Incentives: subsidize sprinkler/drip and smart irrigation technology 4. Market organization: induce changes in the crop mix: reducing the high water demanding crops and introducing more vegetables in winter season only which will reduce the irrigation water demand 5. Recharge Dams: Manage the aquifers by increased recharge 6. Manage aquifer by injecting treated seawater in beach front zone to constitute a hydraulic barrier against seawater intrusion whenever possible All stakeholders should be involved on the selection of the most efficient options to adapt to climate change effects The decision on which measure to undertake is dependent on the cost and the profitability of each option or the combination of several of these options together Agro-economic Results: change in Yields region crop negativ mixed positi e ve Africa wheat 1 0 0 maize 4 0 1 Wheat 2 2 0 Rice 5 8 4 Maize 2 0 0 wheat 4 0 0 Maize 3 0 1 what 0 1 4 maize 1 0 3 wheat 0 4 0 maize 2 3 0 wheat 0 1 0 rice 0 3 1 South Asia Latin America Europe USA Japan Source: Mendelson and Dinar. Research observer,1999 In developing countries, 21 negative and only 6 positive outcome (of 43 studies) In developed countries, 9 positive studies and 3 negative studies (out of 27 studies) Ricardian results: change in net income resulting from a temperature increase country Temperature increase Change in income (4%) USA 2.0 -3 to +2 USA 2.0 -3 to +2 India 2.0 -3 to -6 India 3.5 -3 to -8 India 2.0 -7 to -9 India 3.5 -20 to -26 Brazil 2.5 -5 to -11 brazil 3.5 -7 to -14 Land values would fall by an average of 4% in India as a result of 2 degree Celsius increase Source: Mendelson and Dinar. Research observer,1999. P. 287 These estimates do not include carbon fertilizer, which is expected to add 30% to crop . Climate scenario assumes a 7% increase in precipitation. MENA Countries: Simulation Results(IFPRI IMPACT MODEL) IFPRI uses the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT model) to simulate the impact s of climate change. Three impacts on crop production from climate change are considered: (1) direct effects on rain-fed yields through changes in temperature and precipitation (2) indirect effects on irrigated yields from changes in temperature and changes in water availability for irrigation (including from precipitation), and (3) autonomous adjustments to area and yield due to price effects and changes in trade flows in the economic model. Using comparisons of IMPACT projections with and without climate change scenarios, the “net” impacts of climate change on agricultural production, demand, trade, and prices can be obtained. Climate change reduces the availability of water for agricultural and non agricultural use Per capita water availability under different scenarios of climate change, MENA region cubic meter/capita/year 600 Per capita water availability is projected to decline over time Annual per capita water availability will slightly increase under NCAR and decrease 500 NOCC NCAR 400 CSIRO HADCM3 300 200 100 0 Source: IFPRI 2009 cited in Breisinger 2025 et al. 2050 NoCC = no-climate-change scenario; NCAR = National Center for Atmospheric Research; CSIRO = Commonwealth Scientific and Industrial Research Organization; HadCm3 = Hadley Centre’s Coupled Model, version 3. Average cereal yields are projected to decline by 2025 and 2050 Average cereal yield under historic climate and alternative climate change scenarios, MENA Region 4.5 4 yields are projected to decline slightly In2025. The decline is however is somewhat Larger in 2050 NoCC HADCM3 CSIRO 3.5 NCAR tons/ha 3 2.5 2 1.5 1 0.5 0 2025 Source: idem 2050 Climate change will increase world price of key staple cereals International price for wheat and rice in 2000 and projected 2050 under historic climate and various scenarios of climate change 450 400 Price for wheat in 2050 will be 80-102 % higher compared to the no climate change . Scenario. Price for rice in 2050 will be 28-37 % higher compared to the no climate change scenario 350 US$/ton 300 2000 250 NoCC HADCM3 200 CSIRO NCAR 150 100 50 0 Wheat Rice Net cereal trade under alternative climate change scenarios, MENA 0 2025 2050 -10 percentage change -20 -30 NoCC -40 HADCM3 NCAR CSIRO -50 Net cereal imports into MENA would decline under the climate change scenarios -60 Under climate change net cereal imports would still increases over time but at a lower rate than the no climate change -70 Scenarios. this is because world price significant increase would reduce local demand -80 Higher food price reduce demand for food in MENA Region 200 180 Cereal demand for food, feed, and other uses projections under historic and climate change scenarios 160 million metric ton 140 120 other 100 feed food 80 60 40 20 0 2000 Source: Breisinger et al. 2010 2050 NoCC 2050NCAR 2050CSIRO 2050HAD Lower food availability and affordability as a result of climate change will increase childhood malnutrition 3000 malnourished children in 1000 2500 Number of malnourished children, projected 2025 and 2050, MENA The largest increase of malnutrition under the drier CSIRO scenario 2000 NoCC HAD 1500 CSIRO NCAR 1000 500 0 2025 2050 Summary Predicted warming and predicted lower precipitation in the Arab region makes this region particularly vulnerable to climate change Climate change will cause decline in crop yield (as a result of higher temp and lower precipitation) Climate change will lead to higher prices of traded ag. Commodities Initiatives to reduce vulnerability to climate change • • • • • • • • • • • General agricultural and economic development initiatives Developing agricultural markets Reducing distortions and subsidies in ag. policies Continuing trade liberalization Enhancing social protection and microfinance Preparing for disasters Mainstreaming climate change in ag. policies (i.e in ag. development plans) Given the significant risk of droughts, promote risk sharing and risk reducing investment and policies Reform the water governance and institutions particularly for GW to address the high demand for irrigation water as a result of the decline in precipitation Higher investment in research and new technology development (biotechnology and genetic modification to adapt to bio stress ie. drought ,heat, salinity) Tapping in traditional knowledge in crop varieties and adaptation