Risks to Murray-Darling Basin Water Resources Program Project Summaries Project code: CD2C Project title: Potential Water Quantity and Quality Impacts in the Murray-Darling Basin from Communities and Industries Responding to Climate Change Project timeline: March – October 2010 Contractors: Centre for Water Economics, Environment and Policy, Australian National University Report Authors: Quentin Grafton (ANU), Chris Miller (Flinders University), William Nikolakis (ANU), Fiona Verity (Flinders University) Project objectives: The objective of this project is to prepare a full synthesis report on the potential direct effects of climate change on the MDB’s people, communities and industries. This should include: 1. the impact of climate change on people and communities in terms of demographic characteristics, community viability and resilience, community vulnerability and adaptive capacity, cultural values, social cohesiveness and capital, and economic development including public infrastructure; 2. the impact of climate change on people and industries including agriculture (irrigated and dryland), forestry, aquaculture, food and fibre processing and value adding, construction, transport, tourism, and public and private sector service provision; 3. examine these in 3 regions/communities dependent on water supplies beyond those used for human consumption, and three non water-dependent regions/communities; and 4. consider potential impacts on, and any particular needs of, indigenous communities within the Basin. Methods: The methods employed in the various parts of the study differ. Quantitative modelling is used to provide a comparison of what may happen to key industries under different climate change scenarios. These results provide a reference point for the use of social methods to engage with communities to understand their willingness and ability to adapt, and what may be constraining their adaptation. This engagement involved community facilitations in six communities as well as interviews with 30 Indigenous community leaders across the Basin. The authors clearly state what they define ‘adaptation’ to be and how ‘climate adaptation’ represents the individual, business and community responses to climate change. This is important, as the quantitative and qualitative information that is provided focuses on the ability of people to respond to changes as determined by their ‘adaptation capacity’. The capacity to adapt depends on multiple forms of capital (human, social, natural, physical and financial), that varies over time. The authors 1 CD2C Project Summary also highlight the importance of understanding that an individual’s or community’s adaptive capacity represents the potential to respond to change, but that the actual responses may be less than what is possible depending on institutional constraints, lack of information, or policies that promote existing practices and activities that are ill-suited to a changed climate. The quantitative and qualitative methods employed by the research team are described in detail in the Final Report and are replicable. Together, the modelling of industry impacts and the community engagements provide a sound basis for longitudinal research and guidance for the MDBA in terms of its role in managing and responding to climate risk in Basin communities. Summary of key results: Three reports are provided for this project - a detailed Final Report, Literature Review and Summary Report. The Summary Report is excellent and much of what it contains is repeated here. For more detail the other two Reports are good references, with the Literature Review providing an overview of the theories and ideas around ‘climate adaptation’, predicted climate driven changes in the MDB, and the likely impacts this will have on different parts of the Basin, industries and communities. The overall results of the work are organised against three objectives as follows: 1. a quantitative analysis of the possible effects on dryland (wheat yields and dryland property values) and irrigated agriculture (water use, net profits, land use and employment) under various climate-change scenarios based on CSIRO sustainable yields regions and a Basinwide review of possible impacts on other industries (tourism and forestry); Mathematical programming for irrigated agriculture and econometric techniques for dryland agriculture were used to provide a picture of the exposure of regions and communities to climate change. The agreed Risk Assessment Program portfolio climate change scenarios were used: A ‘most favourable 2030 scenario’ that is based on a continuation of the long-term (1895 to 2006) averages for rainfall and runoff across the MDB, A ‘medium 2030 scenario’ that is based upon the medium global warming scenario and associated rainfall and runoff described in the CSIRO report Water Availability in the Murray–Darling Basin of October 2008, and A ‘least favourable 2030 scenario’ that is based upon the actual climate of the MDB in the period 1997–2006 (this includes 15% less rainfall and 50% less runoff in the southern MDB when compared with the long-term average). To these three was added one more: A ‘driest 2030 scenario’ that is the water availability of the driest year in the least favourable 2030 scenario. Results showed that those industries most affected by climate change, such as agriculture, are already adapting to a changing climate. The ability to trade water and appropriate price signals about water scarcity has allowed many farmers to effectively respond to much-reduced water availability. Such adaptation at a Basin scale, however, hides some large regional changes that have arisen due to the recent drought. Relatively moderate changes Basin wide would be expected to occur except in the most extreme, dry scenario for 2030. However, even moderate changes at a basin scale mask substantial negative effects on some regions in the south of the Basin in an extreme, dry scenario. Some of these regions are predicted to suffer large reductions in dryland property values and also profits and employment in irrigated agriculture. In less extreme scenarios, including projections based on the 19972006 climate, the effects would be much less pronounced Basin-wide, and also regionally. 2 CD2C Project Summary Negative impacts of climate change are also likely to be regionally focused, especially in terms of infrastructure-based tourism. It is possible that overall tourism impacts may be moderate in the Basin as a whole, but some locations will likely suffer reduced visitation rates if there are major declines in the quality of key assets such as lakes and wetlands. Policies to sequester carbon, if implemented, are likely to increase the forest cover within the Basin. Should this occur, it will reduce end-of-catchment flows in a substantial number of catchments, and across the Basin as a whole by as much as 19% by 2050. The negative effects of afforestation suggest that owners of newly planted forests should be forced to acquire water entitlements equal to the amount of the expected reductions in flows, so as to ‘internalise’ the cost of their plantings in terms of water availability. Overall, the results stress that some parts of the Basin, especially some of the upper and southern catchments, are much more exposed to climate change impacts than others. The authors suggest that regional/catchment based initiatives must complement any general, Basin-wide strategies to assist exposed industries (agriculture, tourism and forestry) to autonomously adjust to climate change. 2. Overviews of six (three water-dependent and three non-water-dependent) communities in the Basin and outputs from facilitations and dialogues within these communities; Using regional results from the dry extreme scenario series as a starting point, a set of community facilitations and public forums were conducted in six Basin communities (Narrabri and Tamworth; Shepparton and Euroa; Renmark and Pinnaroo). The consultations represented a dynamic, field-based and replicable approach to understanding community options and challenges of climate change and their possible responses. Indexes were used to describe the six communities that formed part of the field research, and results showed substantial socio-economic and demographic differences across the six communities. Of interest, was that although different in terms of the measurement indexes, the six communities are much more similar in terms of their views and possible responses to climate change. An important finding from this research was the overall low level of community adaptability and resilience in relation to long-term climate change. Some factors contributing to this situation include a depleted resource base in terms of social, human and financial capital (for example, losing young people from regions) as well as a low level of trust in government and its agencies. There is also prioritisation of what are perceived as immediate and pressing concerns, and insufficient agreement or consensus that long-term climate change is an urgent issue demanding transformative change. Sixteen key messages arise out of the consultation process, and many of these are repeated in the final set of recommendations. The messages relate to adaptation responses, actions, capacities and constraints. Of great importance is the first key message that found participants struggled to focus on challenges of long-term climate change, with a sense of anxiety and resignation over pressing demands that threaten their livelihoods. These immediate concerns, the authors argue, undermine participant’s ability to consider longer term, proactive adaptation to climate change. Other messages related to the need for greater leadership, co-ordination and improved communication between institutions such as the MDBA, State and Regional organisations. To date, the Basin Plan consultation process has not been well received and work is required to rebuild trust between the MDBA and the Basin community it works within. Also significant is the final message that highlighted all is not ‘doom and gloom’, and that there are many ideas for adaptation within Basin communities that, if properly tested and supported, could assist in community adjustment to climate change. 3 CD2C Project Summary 3. Evaluation of impacts and responses to climate change from a Basin-wide engagement with key representatives from Indigenous communities The Indigenous component of this study considered the potential impacts of climate change on, and any particular needs of, Indigenous communities within the Basin. The 30 diverse Indigenous nations of the MDB hold unique legal, customary, spiritual and economic rights and interests to water that are recognised by some States and in national water reform. It is argued that Indigenous nations themselves are best placed to manage and direct water to places of cultural significance, and to ensure habitats have water in the right season for harvesting flora and fauna. The term ‘cultural flows’ is increasingly being used to describe a water access entitlement owned by respective Indigenous nations communally to further their objectives, be it spiritual or economic, ecological or social in nature. This part of the research involved in-depth, semi-structured interviews with representatives from the Murray Lower Darling River Indigenous Nations and the newly formed Northern Basin Aboriginal Nations in April and May of 2010. These initial contacts were then used to access elders and other individuals with authority and expertise on climate change in communities. In total, 30 Indigenous people were interviewed across the northern and southern MDB with visits to leaders in Dubbo, Albury, Brewarrina, Weilmoringle, Denniliquin, Sydney and Brisbane. Four findings from the consultations are provided in the Summary Report: i. Communities have already dealt with variability in the environment and their culture, but are troubled by anthropogenic-caused climate change. Climate change is seen as an added pressure on weakened social and ecological resilience amongst Indigenous people in the MDB. ii. Indigenous participants view climate change as a threat to their way of life, culture and customary aspirations, and are concerned about its impact on the movement of their people from traditional lands. iii. Indigenous participants are concerned that their communities may be ignored in policy responses and measures to deal with climate change. They also have a view of disempowerment among their communities, and expressed their concern that their customary (non market) values are overshadowed by economic imperatives. iv. Some Indigenous participants saw opportunities for climate change to enhance the value of Indigenous observations and traditional ecological knowledge in dealing with impacts (such as the creation of a “Cultural Flow” for water). Opportunities with climate change will likely require a negotiation of the role of Indigenous people in adaptation and natural resources management. Importantly, engaging Indigenous peoples on the effects of climate change and building awareness in a meaningful and relevant way was seen as important to build adaptive capacity and support informed consent among MDB Indigenous groups Comparisons with other projects: This project’s findings about the potential effects on water resources of extensive carbon sequestration plantings are in general agreement with those of project CP1. This topic should be re-assessed if and when the pricing of carbon becomes clearer. The project also complements the work of CD1 that assessed responses to drought amongst different stakeholder groups in the MDB with a view to providing insights into how communities will respond to climate change and the introduction of the Basin Plan. Many of the views and opinions expressed in the case studies and interviews in this project are mirrored by findings in CD1 which also undertook extensive interviews. 4 CD2C Project Summary Knowledge gaps identified: This work did not highlight specific ‘knowledge gaps’ but demonstrated the importance of looking to the past to understand why things are happening the way they are in the present. There is a wealth of knowledge about how to engage communities, build and foster adaptive capacity, and communicate in meaningful and relevant ways. What this project has shown is that, unfortunately, the policy and process pathways being used to ‘deliver’ the Basin Plan are failing to connect with the communities they are impacting upon. In terms of climate change, the findings in the report are consistent with work undertaken through scoping work by the Climate Change Research Strategy for Primary Industries (CCRSPI) consortium work that found similar fears and anxiety about climate change in some industries, while less in others. This is explored in detail in this Report and there is a lot of information that other organisations working in related climate change initiatives would be very interested in accessing. Implications for policy: Based on the work undertaken through this project, the researchers provide several insights for the MDBA in its possible future interventions. First and foremost is the finding that adaptation is not simply about responding to external climate effects, but is about supporting individuals and communities in their responses to a range of shocks, anticipated and otherwise. Future engagement by the MDBA will be most needed in the southern and upper catchments of the Basin that face greater exposure to climate change. The nature of this engagement must focus on rebuilding trust, delivering a clear, co-ordinated and consistent message about what is required and which organisations are available to assist communities in adapting to change, and tailoring information and engagement processes so that they are relevant and meaningful for the community concerned – a one size fits all approach is inappropriate. Effective engagement by outside agencies such as the MDBA will require support for processes that promote information exchange, knowledge creation, and actions across multiple scales and stakeholders within and across communities. To build community adaptive capacity, climate change needs to be seen as a whole of community issue. This requires a process of on-going community engagement to include previously excluded groups. Engagement should begin with current circumstances in communities, especially the levels of individual, family and community stress. There is also a need to support current leadership from different domains within each community and enable them to work better together. Adaptation support, the authors suggest, should be underpinned by an evaluative research framework to ensure that learning and good practice can be transferred elsewhere. Recommended Communication Approach: All three Reports (Final, Literature Review and Summary) should be made available on the MDBA website with the content pages hotlinked. The Summary Report is worthy of professional editing and production as it contains a great deal of interesting and insightful information. Ongoing dissemination of the findings through workshops and other public fora would also be beneficial, ideally focusing on policy audiences in the Federal, State and Regional scales discussed in the report. There may also be opportunities for this work to be presented at forthcoming climate change events. 5 CD2C Project Summary