WATER P-NOTES ISSUE 44 AprIl 2010 55275 Environmental Flows in Water Resources Policies, Plans, and Projects Part 1: Findings and Recommendations and Part 2: Case Studies E nvironmental flows are central to equitable distri- can be problems for downstream ecosystems owing bution of and access to water and services pro- to the impact on the volume, pattern, and quality vided by aquatic ecosystems. They refer to the of flow. Changes in flow often lead to the degrada- quality, quantity, and timing of water flows required tion of downstream ecosystems that many of the to maintain the components, functions, processes poorest communities rely on for their livelihoods. If and resilience of aquatic ecosystems that provide water resources are to be developed and managed goods and services to people. They are fundamen- tal for sustainable water resources development, benefits sharing, and poverty alleviation. Nonethe- Environment flows are linked to less, water resources development planners have IWRM in three fundamental ways: often overlooked environmental flows or addressed 1. The aquatic (and related terrestrial) ecosystem them inadequately. This two-part report, based on provides habitat for fish, invertebrates, and other the Bank's economic sector analysis, shows their fauna and flora. The aquatic ecosystem is thus a central importance for Integrated Water Resource water-consuming sector just like agriculture, en- Management (IWRM) and presents data, findings, ergy, and domestic and industrial supply. and recommendations, based on indepth case study 2. The design and operation of hydraulic infra- analysis, to help make environmental water alloca- structure for water supply, sewerage, irrigation, tion an integral part of IWRM. hydropower, and flood control often affect ecosystems, both upstream and downstream of the infrastructure, and communities--farm- Water Resources, Economic ing, pastoral, and fishing--dependent on those ecosystems. Conversely, the reoperation and Development, and Climate rehabilitation of existing infrastructure have been Change used to support the successful restoration of de- graded riverine ecosystems. Environmental flows are linked to IWRM in funda- 3. Integrated water resources planning and man- mental ways (see box), but they can be impeded or agement are facilitated by policies, laws, strate- compromised by many facets of economic devel- gies, and plans that are multisectoral, based on opment and resource use. Investments in water the allocation of water for all uses; protection of resources infrastructure, especially dams for stor- water quality and control of pollution; protec- age, flood control, or regulation, have been vital tion and restoration of lake basins, watersheds, for economic development. When they are improp- groundwater aquifers, and wetlands; and control and management of invasive species. erly planned, designed, or operated, however, there This note reports key points from this two part publication by Rafik Hirji and Richard Davis from the World Bank's Environment and Development Series, 2009. Readers may download the complete papers from www.worldbank.org/water. WATER P-NOTES in a sustainable manner, infrastructure projects must framework to support the effective integration of include a full accounting of the social and environ- environmental flow considerations into the planning, mental impacts both downstream and upstream, design, and operations decision making of water and allow for full representation of all the affected resources infrastructure projects, as well as the legal, populations in the planning, implementation, and policy, and institutional organizations that govern operational stages of the project. these projects and also restoration programs; and provides recommendations for incorporating envi- Climate change also affects the supply of and ronmental flow considerations into the preparation demand for water resources. Sea-level rise along and implementation of lending operations. coastlines will cause saltwater intrusion and affect estuarine processes that rely on freshwater envi- ronmental flows. In some nations, adaptation to climate change is likely to involve more investment Sustainable Water Development in dams and reservoirs to buffer against increased Assistance Requires variability in rainfall and runoff. This will further Environmental Flow Information affect downstream ecosystems unless the impacts are properly assessed and managed. Environmental flows provide a whole host of eco- Specifically, the main report, based on 17 case nomic, social, and environmental services, including studies (see Figure A.1.), documents the chang- clean drinking water, groundwater recharge, food ing understanding of environmental flows by water sources, flood protection, navigation routes, natural resources practitioners and environmental experts biochemical waste removal, recreational opportuni- both within the Bank and in borrowing countries; ties, and cultural, aesthetic, and religious benefits. examines lessons learned from past efforts at man- Assigning water between environmental flows and aging environmental flows; develops an analytical consumptive and non-consumptive purposes is a Figure 1. Location of Case Studies Location of Seventeen Environmental Flow Policy, Plan and Project Case Studies Regional Policy Case Studies National Policy Case Studies State Policy Case Study Park/Basin/Catchment Plan Case Studies Infrastructure Project Case Studies Water Framework Directive, European Union Aral Sea, Bridge River, Central Asia Canada Tarim Basin, China Florida Water Policy, USA Chilika Lagoon, Senegal, India West Africa Mekong Basin, National Water Policy, South East Asia Tanzania Pangani Basin, Lower Kihansi Tanzania Power Project, Tanzania Pioneer Catchment, Kruger National Park, Australia South Africa National Water Policy, South Africa Lesotho Highlands Water Project, Lesotho Berg River, South Africa National Water Initiative, Australia DECEMBER 2008 IBRD 36665 This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 2 ISSUE 44 · APRIL 2010 social, not just a technical, decision. To achieve ing information from across a range of physical, equitable and sustainable outcomes, however, these ecological, and socioeconomic disciplines. In addi- decisions should be informed by scientific informa- tion, a wide variety of EFA methods now have a tion and analysis. The impacts of development on considerable history, which demonstrates their utility downstream communities are often diffuse, long term, for differing levels of environmental risk, time and poorly understood, and inadequately addressed. The budget constraints, and available data and skills. A causes of changes in river flow can also be broader growing body of experience in implementing envi- than just the abstraction or storage of water and the ronmental flows provides guidance for the monitor- regulation of flow by infrastructure, as upstream land- ing and adaptation of management procedures. use changes due to forestry, agriculture, and urban- ization can also significantly affect flows. The impacts of environmental flow can extend beyond rivers to Achievements and Challenges groundwater, estuaries, and even coastal areas. An environmental flow assessment (EFA) is the Environmental flows work within the Bank is shaped first step in the process for estimating environmen- by evolving global knowledge, practice and imple- tal flow requirements. EFAs are an intrinsic part mentation and helps to shape the repository of global of IWRM. Although it is desirable for EFAs to be knowledge and experience on environmental flows. integrated into strategic environmental assessments There have been considerable advances in the sci- (SEAs) for policy, plan, program, or sector-wide ence of environmental flows over the last 15 years, lending, and into environmental impact assessments including improvements in basic scientific understand- (EIAs) for project-level investments, the practice of ing and the development of EFA techniques. Environ- SEA and EIA has yet to mature to a point where EFAs mental flow considerations were initially introduced are effectively integrated. As a result, most EFAs have into assessments for new infrastructure projects. They been undertaken separately, either in conjunction are now being gradually mainstreamed into more with or after the EIAs have been completed. strategic levels of decision making, including national water resources policies and formulation of basin- The Bank has four entry points for helping and catchment-level plans as well as in the restora- countries integrate environmental flow consider- tion of degraded ecosystems and re-operation and ations into their decision making: rehabilitation of existing infrastructure projects. · Water resources policy, legislation, and institu- The Bank and environmental flows practitioners tional reforms; face many challenges, including overcoming the · River basin and watershed planning and man- misperceptions arising from the term "environmen- agement; tal flows"; developing methods for systematically linking biophysical and socioeconomic impacts; · Investments in new infrastructure; and incorporating the whole water cycle (surface, · Rehabilitation of existing infrastructure or groundwater, and estuaries) into EFAs; applying degraded ecosystems. EFAs to land-use activities that intercept and exacer- bate overland flows; including climate change in the Consistent with its commitment to sustainable assessments; integrating environmental flow assess- development, the Bank, as it has done in dam ments into strategic, sectoral, and project EFAs; and projects since the 1990s, must support measures understanding the circumstances in which benefit to promote the integration of environmental flows sharing is a viable approach. at an early stage in the decision-making process through dialogue on water resources policy, river basin planning, and programs that entail major The Way Forward: A Framework for changes in land-use. Bank Action The science underpinning EFAs has advanced The analysis suggests a framework for improving considerably, with more methods for estimating the Bank's approach to environmental flows: environmental flow requirements, more information available on the ecological response to different 1. The Bank must strengthen its capacity flow regimes, and more experience in integrat- to assess and oversee environmental 3 WATER P-NOTES flows. This can be accomplished by promoting water needs into policies and plans a common understanding amongst water and through dialogue and specific instruments such environmental stakeholders about the concepts, as country water resources assistance strategies methods, and good practices related to environ- (CWRASs), country assistance strategies (CASs), mental flows, including the need to incorporate country EAs, and development policy lending. EFAs into environmental assessment at both proj- The Bank must promote plans that include envi- ect (EIA) and strategic (SEA) levels. The Bank can ronmental flow allocations and use CASs and expand its in-house capacity by broadening the CWRASs to promote Bank planning and water pool of ecologists, social scientists, and environ- policy reform so that the benefits of environ- mental and water specialists trained in EFA. mental water allocations for poverty alleviation are integrated into country assistance. 2. Environmental flow assessments should be made part of lending operations Where sectoral changes will lead to large- through training Bank and country staff, dis- scale land-use conversion, the Bank should incor- seminating guidance and support materials, porate environmental water needs into Bank SEAs and access to international experts. The Bank and sectoral environmental assessments. There can assist in identifying settings, approaches, is a need in developing countries to harmonize and methods for the select application of EFAs sectoral policies with environmental flows require- in the preparation and implementation of proj- ments and increase institutional awareness of the ect-level feasibility studies and as part of the impact of policies on downstream communities. planning and supervisory process. It can also Valuable lessons can be adapted from developed provide support for hydrological monitoring countries that have experience with incorporating networks and hydrological modeling to provide environmental flows in water resource planning. the basic information for undertaking EFAs. The Support material must be provided for Bank staff Bank should prepare an update of the environ- on how to include environmental flows into basin mental assessment (EA) sourcebook concerning and catchment planning and into water resources the use of EFAs in SEAs and EIAs, as well as a policy and legislative reforms. technical note that defines a methodology for 4. Collaborative partnerships between the addressing downstream social impacts of water World Bank and NGOs, research organi- resources infrastructure projects. zations, and international organizations The Bank must test the application of EFAs must be expanded in order to take advan- by including infrastructure other than dams tage of their experience in conducting EFAs and as well as activities such as investments in building environmental flow capacity in devel- large-scale land-use change and watershed oping countries. By strengthening relationships management that effect downstream flows and with industry associations, the Bank can promote ecosystem services, broadening the concept awareness of the impact of environmental flows of environmental flows to include groundwater on ecosystem services delivered downstream and systems, lakes, estuaries, and coastal regions. the social and economic outcomes they allow. The provision of support material for Bank staff Adoption of this framework will improve the and counterparts in borrowing countries, such Bank's ability to implement its strategy of increas- as case studies, training material, and technical ing investment in water resources infrastructure, notes would also be of considerable help. while reducing the risk of detrimental environmental 3. Efforts are needed to promote the inte- impacts that threaten the livelihoods of downstream gration of environmental flows and communities. The Water Sector Board Practitioner Notes (P-Notes) series is published by the Water Sector Board of the Sustainable Development Network of the Water World Bank Group. P-Notes are available online at www.worldbank. Sector org/water. P-Notes are a synopsis of larger World Bank documents in Board the water sector. 4 THE WORLD BANK | 1818 H Street, NW | Washington, DC 20433 www.worldbank.org/water | whelpdesk@worldbank.org