Changing Currents – Chapter 5: National Water Issues
Chapter 5
National Water Issues
Many of the sector-specific water issues identified in Chapter 4 are of a regional nature. Through its investigation of water issues and Canada’s natural resource sectors the NRTEE identified a number of critical issues that are of national importance, cutting across sectors and political boundaries. These are:
- governance and management;
- the impacts of climate change on water resources;
- the water-energy nexus; and
- the public licence to operate.
Governance and Management
The governance and management issue is the most complex of the four issues and is defined by:
- complicated and fragmented statutes and policies surrounding water use across the country;
- outdated and possibly inappropriate water allocation systems in some parts of the country;
- limited policy instruments and narrow approaches to manage water resources;
- limited knowledge of actual water use and availability (surface and groundwater); and
- a general lack of capacity and expertise.
Statutes and Policies
Current water policies and regulations in Canada are burdensome and complex, due to the jurisdictional division of powers between the federal and provincial governments and to the fact that provinces also delegate some of their authority to municipalities. Even within one order of government, responsibilities for water management are usually shared between several agencies. The natural resource sectors, critical water users in Canada, must deal with a multitude of statutory and policy instruments managed by various government and non-government participants, often without adequate coordination.
Water Allocation Systems
As explained in Chapter 3, water allocation systems vary across the country. In recent years, there have been numerous calls for a modernization of allocation practices in certain parts of the country. Faced with serious water shortages in the southern part of the province, Alberta has undertaken a review of its water allocation management system. This will allow government, communities, industry, and the public in this province to explore options to better meet future water needs and support regional outcomes. Similar initiatives that assess and improve the existing allocation systems are being contemplated in other provinces such as British Columbia. There is a need to assess current allocation systems across Canada. The time to do so is now, before water shortages become more prevalent in the country and conflicts over allocations arise.
Policy instruments
Throughout the last century, water management in Canada was increasingly achieved through regulatory and legislative tools. To enable a more flexible and adaptive policy approach that recognizes regional and local particularities, a move toward a broader suite of policy tools for water management is needed. This requires identifying and evaluating economic and fiscal policy instruments in a Canadian context. Canada needs a more complete investigation of regulatory and non-regulatory instruments along with an examination of the potential implications these types of water management instruments might have on the natural resource sectors.
Knowledge Base
Good, reliable data and information about the availability of ground and surface water as well as accurate measures of water use are necessary to ensure informed decisions. But a real challenge exists in accessing, understanding, and interpreting water information pertaining to the natural resource sectors’ uses.
Overall, most sectors have a good understanding of their operational water uses, which they collect from primary sources such as metres, or proxy sources such as pump data and effluent discharge volume. Through water-use permits and licences, provinces and territories collect a great deal of water-use data, across these sectors, but the nature of that data, consistency of approach, and accuracy vary across the country. What is known about a sector’s water use is often based on water permits and licences, which are an indication of water allocation, and not the actual water use. In some provinces (e.g., British Columbia) water drawn from groundwater sources is exempted from the permit process and therefore not monitored. Actual water use at regional and national levels remains uncertain.
Given the shared nature of water governance, information sharing between jurisdictions merits some attention and consideration. Integrating data on water use, availability, and flow measurements is necessary for informing place-based decisions and integrated watershed management. Furthermore, this kind of integration is necessary to examine the costs and benefits associated with certain decisions that will impact water resources. The movement toward the integration of databases across jurisdictions does not yet exist in Canada but is being contemplated. Creating integrated databases, especially between organizations and even more so across jurisdictions, will be a significant challenge — from the perspective of data quality and control, to resourcing and management.
Capacity and Expertise
There is an increasing recognition that governments do not have the capacity – in terms of human resources, expertise, financial resources, and management systems – to act alone and properly manage water resources. Collaborative governance models, under which the authority over water is shared with water users and other stakeholders within a watershed, are seen as a better approach to developing policies and managing our water resources. Such approaches are increasingly implemented in Canada and other countries, and show promise of being successful. But some experience has demonstrated that delegation to a local authority can fail if not properly resourced with adequate capacity and expertise.
Impacts of Climate Change on Water Resources
Climate change is emerging as a key factor expected to change the way in which we must manage water resources. Although water scarcity is not currently a problem across the country, broad agreement from the scientific community in Canada and elsewhere has demonstrated that large-scale hydrological cycles driven by climate change are occurring and are anticipated to continue to change in the future.
Over the next century, Canada is likely to experience warming at twice the global average, with more northern regions experiencing the greatest increases.[116] Changes in precipitation and evaporation are anticipated as a result of the temperature change,[117] as well as changes in the frequency, extent, and severity of many climatic extreme events including droughts, heat waves, and intense storms. The effects on Canada’s water resources will vary across Canada and will be highly localized, given the complex and evolving nature of the natural processes that regulate hydrology. The same forecasts suggest that increasing water shortages (both ground and surface water) will be a key issue in many parts of Canada. Experts have acknowledged that past hydrological experience will be insufficient to provide a good guide to future conditions. For the natural resource sectors the uncertainty and risks associated with these changes is a challenge.
Research on the physical impacts on water resources in Canada highlights potential changes to precipitation events and regional hydrology (Figure 18). Overall precipitation is expected to increase slightly in the north and decrease slightly in the south and west, with less in summer, and more during intense events. Winter warming is expected to reduce snow accumulations in alpine areas[118] and across the Prairies. This will cause declines in annual streamflow and a shift in streamflow timing to earlier in the year, resulting in lower summer water supplies. In addition, Canada is already experiencing the effects of glaciers retreating. In the future, glacier melting will be accompanied by an increase in runoff for a period until the runoff declines as glaciers are depleted.[119] While many western Canadian rivers are currently experiencing an increased flow phase from glacial melt, some are already showing evidence of this decline.[120] The results of this decline in water availability will be significant. British Columbia is expected to face increasing water shortages, particularly during periods of peak demand.[121]
Water shortages will also be exacerbated in the Prairies due to continued glacier retreat and reduced runoff. Lower summer stream flows will be experienced in an already arid Prairie region. By 2020 annual flow of the main rivers is expected to be reduced.[122] Reduced discharge and increasing frequency of dry years will increase both soil water deficits and surface water deficits with implications for all users.[123] As glacier melting increases, the degree of dryness on the Prairies is expected to increase by 50% by 2050. The drought frequency is expected to double and stream flow and soil moisture are expected to decline 30%.[124]
FIGURE 18
In Ontario, ground water recharge will be decreased.[126] The Great Lakes are expected to experience lower net basin supply and an increase in the frequency of low water levels.[127] To the east, the Maritime Provinces are projected to experience increases in both precipitation and temperature.[128] Seasonal and yearly variations in precipitation will combine with higher evapotranspiration to induce drier summer conditions.[129]
Regions with reduced water supplies and increased demands will likely experience competition among users. Water quality in many regions will be compromised by lower water levels, warmer temperatures, and more intense precipitation.[130] Warming will likely compromise water quality through the intensification of thermal stratification, contributing to oxygen depletion.[131]
Overall, the natural resource sectors, with their significant reliance on water, will be affected by reduced water supplies. Presently, some sectors are very concerned about the impacts of climate change on water availability and others less so, but all sectors struggle with incorporating uncertainty of climate change predictions into management practices. In general, it will require a more concerted response from industry to assess potential risks and develop adaptation strategies. As both local and regional hydrology is anticipated to change, water managers will need to consider how to adapt. Thinking about these issues now will permit earlier and more effective adaptation.[132] Governments have a responsibility to better understand the potential changes for water resources and should respond accordingly by changing their water policies. These new polices need to be flexible enough to adapt to the changing physical environment and evolving activities of the natural resources sectors, and robust enough to protect the ecosystem and services upon which communities rely.
The Water-Energy Nexus
An important issue for water policy development is the linkage between water and energy (or the “water-energy nexus”). Climate change is often linked to discussions about the water-energy nexus due to the greenhouse gas emissions that result from energy production and the impacts that occur to water resources as a result of climate change. This has been referred to as the water-energy-climate change feedback loop.[133]
From the industrial processing and production side, water is needed to produce energy (i.e., to extract and produce fuel and to generate power) and energy is needed to produce useable water (i.e., to access, treat, and distribute water). Indeed, the electricity sector is the most significant user of water in Canada, and energy requirements to manage and transport water can be a major component of total energy use by natural resource sector operations. Representatives across sectors commonly identify financial savings through energy use reductions as the main driver for improving water use. While some opportunities such as conservation practices simultaneously reduce water and energy use, other opportunities pose trade-offs between water and energy use. For example, closed-loop and dry cooling systems are frequently identified as technologies that use less water, and could be used as alternatives to once-through cooling systems that require large amounts of cooling water. However, closed-loop and dry cooling systems require greater energy use than once-through cooling systems, resulting in decreased plant efficiency and increased greenhouse gas emissions. Therefore, water use, energy use, and associated greenhouse gas emissions objectives may sometimes be in conflict at the production level.
From the policy and regulatory perspective, climate change mitigation, energy security, and sustainable water use are all issues that governments must manage. However, policies are usually developed in isolation and often by different departments. Without integrated policy development, future policies may end up imposing conflicting requirements on the natural resource sectors or creating unintended negative impacts to other resources. For example, as the Canadian government seeks opportunities to reduce greenhouse gas emissions, it has supported the growth of the biofuels industry, but little is known about how this will affect water resources. Another example is the electricity sector: as electricity demand grows in Canada, it is likely that pressures on water resources will increase, possibly creating water supply challenges or leading to degraded water quality.
The linkage between future energy requirements and anticipated water uses warrants further detailed analysis in Canada, especially as policies and approaches for reducing greenhouse gas emissions and exploring alternative energy sources are contemplated. Taking the opportunity now to address the integration of energy, water, and emissions policies could encourage the implementation of complementary objectives in future policies.
Public Licence to Operate
In addition to actual, measurable water issues, the natural resource sectors must also address public perceptions on how they use water. Public pressure can be a powerful driver. More than eight in 10 Canadians currently believe that Canada will have a freshwater shortage problem if conservation measures are not put in place.[134] Despite the rigour most companies demonstrate in meeting regulatory requirements, only 30% of Canadians currently believe that corporations, businesses, and industry are making reasonable efforts to conserve freshwater.[135] For industry, statistics such as these may signal reputational and even future regulatory risks if they are not adequately addressed.
Public pressure to better manage water use is unanimously felt across all the natural resource sectors in Canada. Outside of improvements to lower overhead costs, industry must assess various signals (e.g., societal pressure, demands from other sectors in the value chain, future regulatory shifts or price signals) to integrate water into strategic planning. Such planning may result, in:
- improved measurement, monitoring, and reporting on water use;
- conservation of water by increased recycling and reuse, decreasing contamination, and changing production processes to be more efficient;
- increasing collaboration with government and public groups to improve knowledge exchange;
- coordination with suppliers and purchasers in the value chain to create awareness of future water issues; and
- investing in further research and innovation where needed.[136]
Although not well developed in Canada, financial markets are also starting to examine the way in which companies address water-related risks. In some cases, these are restricted to those risks related to physical limitations to water access, but may also extend into analysis of regulatory compliance and exposure to reputational concerns. In this way, investor groups use their influence to encourage disclosure of water risks and to credit companies that demonstrate progress. The “public licence to operate” in this instance extends into the realm of shareholder approval.
The Canadian resource sectors are responding to public pressure to improve water use and are also investing in water management based on other factors. For example, the forest sector is working to develop quantitative profiles of water uses by forest products in Canadian operations in an act of voluntary transparency. The oil and gas sector has partnered with the Alberta government to invest in furthering shared innovation and in technology for increased water efficiency. The mining sector is developing methods for integrating water use and efficiency in its sustainability reporting standards. In Southwestern Ontario, agricultural producers have mobilized with public authorities to engage the public on allocation decisions during seasonal drought.[137] As issues of water scarcity and quality increase across the country, such actions will be increasingly important for the sectors to demonstrate their corporate responsibility and keep their public licence to operate.
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116 D.S. Lemmen, F.J.Warren, J. Lacroix, & E.Bush, (eds.), “From Impacts to Adaptation: Canada in a Changing Climate”, 2007.
118 S. Lapp , J. Byrne, I. Townshend & S. Kienzle. 2005. Climate warming impacts on snowpack accumulation in an Alpine watershed: a GIS based modeling approach. International Journal of Climatology, Vol. 25, no. 3, p. 521.
119 A. Pietroniro, M.N. Demuth, P. Dornes, J. Toyra, N. Kouwen, A. Bingeman, C. Hopkinson, D. Burn, & B. Brua, “Streamflow shifts resulting from past and future glacier fluctuations in the eastern flowing basins of the Rocky Mountains” (National Water Research Institute Internal Publication, Contribution Number 06-026, 2006).
120 K. Stahl, & R. Moore, 2006. Influence of watershed glacier coverage on summer streamflow in British Columbia, Canada. Water Resources Research, 42: W06201, doi:10.1029/2006WR005022.
121 I.J. Walker, & R. Syndysmith, “British Columbia” in From Impacts to Adaptation: Canada in a Changing Climate, Ed. D.S. Lemmen, F.J. Warren, J. Lacroix, & E. Bush (Ottawa: Government of Canada, 2008), 329–386.
122 L. Martz, J. Brunneau, & J.T. Rolfe, “Climate Change and Water,” SSRB Final Technical Report (2007). Retrieved November 27, 2009, from http://www.usask.ca/geography/ giservices /images/SSRB_Final_Report.pdf.
123 J. Bruce, I. Burton, H, Martin, B. Mills, & L. Moitsch, “Water sector: vulnerability and adaptation to climate change. Final Report” (2000). Accessed January 7, 2010, from www.c-ciarn.mcgill.ca/watersector.pdf.
124 D. Sauchyn, S. Kenney, & J. Stroich, “Drought, climate change, and the risk of desertification on the Canadian plains” in Prairie Forum 30(1): 143–156.
125 National Round Table on the Environment and the Economy, “Degrees of Change: Climate Warming and the Stakes for Canada,” (forthcoming).
126 R. Kreutzwiser, L. Moraru, L., R.C. de Loë, & K. Schaefer. “Drought sensitivity of municipal water supply systems in Ontario,” The Great Lakes Geographer 9(2):59-70. (2003).
127 W. Schertzer, R. Rouse, D. C. L. Lam, D. Bonin, & L. Mortsch, “Threats to Water Availability in Canada,” (Burlington, ON: National Water Research Institute, 2004). NWRI Environment Canada. Scientific Assessment Report Series No. 3 and ACSD Science Assessment Series No. 1.
128 L. Vasseur & N. Catto, “Atlantic Canada” in From Impacts to Adaptation: Canada in a Changing Climate. Ed. D.S. Lemmen, F.J. Warren, J. Lacroix, & E. Bush (Ottawa: Government of Canada, 2007) 119–170.
130 L. Mortsch, M. Alden, & J. Scheraga, Climate change and water quality in the Great Lakes region—risks, opportunities and responses. (Report prepared for the Great Lakes Quality Board of the International Joint Commission, 2003).
131 C.B. Field, L.D. Mortsch, M. Brklacich, D.L. Forbes, P. Kovacs, J.A. Patz, S.W. Running & M.J. Scott, 2007: North America. Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, M.L. Parry, O.F. Canziani, J.P. Palutikof, P.J. van der Linden & C.E. Hanson, Eds., Cambridge University Press, Cambridge, UK, 617-652.
132 R.C. de Loë & A. Berg, “Mainstreaming Climate Change in Drinking Water Source Protection in Ontario.” Prepared for Pollution Probe & the Canadian Water Resources Association (Ontario Branch). (Ottawa: Pollution Probe, 2006).
133 R. Cohen, B. Nelson, & G. Wolff, “Energy Down the Drain: The Hidden Costs of California’s Water Supply,” (Natural Resources Defense Council, 2004). Accessed from http://www.nrdc.org/water/conservation/edrain/contents.asp.
134 Ipsos-Reid, Canadian Water Attitudes Study. (Commissioned by Unilever & Royal Bank of Canada, 2009).
136 World Business Council on Sustainable Development, “Fact and Trends: Water, Version 2.” (2009). Accessed from http://www.wbcsd.org/plugins/DocSearch/details.asp?type=Doc Det&ObjectId=MTYyNDk.
137 R. Shortt, W.J. Caldwell, J. Ball, & P. Agnew, “A Participatory Approach to Water Management: Irrigation Advisory Committees in Southern Ontario.” Canadian Water Resources Association Annual Congress proceedings (2004). Viewed at http://www.cciarn. uoguelph.ca/documents/shortt.
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