NRT-2008110 – 2degreesC Deliverable – Doc # 10398 Water and Natural Resources in a Changing Climate: Sector Assessment FINAL REPORT Prepared for: National Roundtable on the Environment and the Economy February 20, 2009 Prepared by: 2degreesC 200 Woolwich St., Unit 202 Guelph ON N1H 3V7 (519) 515-0019 Water and Natural Resources in a Changing Climate: Sector Assessment February 2009 Table of Contents Executive Summary ................................................................................................................................1 1.0 Introduction......................................................................................................................................2 2.0 Overview ............................................................................................................................................2 Water use and water consumption by the natural resource sectors................................................... 3 Water intake source, use and discharge...............................................................................................5 Industry impacts on water quantity and quality .......................................................................................... 5 Water quality ...................................................................................................................................................5 Interrelationships between water quantity and water quality ..................................................6 Cumulative effects..........................................................................................................................................6 Water governance ....................................................................................................................................................... 7 3.0 Sector approaches to changes in water quantity and quality.........................................8 Water Quality...................................................................................................................................................9 Water Quantity................................................................................................................................................9 Firm­level approaches to water management.............................................................................................10 Matching water quality to need ............................................................................................................10 On‐site water storage and other infrastructure developments...............................................10 Technological and process innovations.............................................................................................10 Farm management practices..................................................................................................................11 Policy and Governance Approaches to Water Management .................................................................11 Government regulation and policy ......................................................................................................11 Voluntary initiatives ..................................................................................................................................11 Best practices................................................................................................................................................12 Research and development.....................................................................................................................12 4.0 Climate change impacts on water resources: Implications for sectors.................... 12 Agriculture....................................................................................................................................................................13 Forestry...........................................................................................................................................................................13 Mining .............................................................................................................................................................................14 Hydroelectric generation .......................................................................................................................................15 Oil & gas production.................................................................................................................................................16 5.0 Sector Scan Results: Key Issues and Perspectives ........................................................... 16 Improved data for planning and management ...........................................................................................16 Knowledge translation ............................................................................................................................................17 The energy­water nexus .........................................................................................................................................17 Watershed­based management ..........................................................................................................................17 Improved communication, collaboration and coordination .................................................................18 Place a value on water ............................................................................................................................................18 Conclusion............................................................................................................................................... 19 Appendix I – Maps .................................................................................................................................... i Glossary of Terms...................................................................................................................................xi Bibliography........................................................................................................................................... xii Endnotes ................................................................................................................................................. xvi Page i Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Executive Summary Water resources, and freshwater resources in particular, are critical to Canada’s natural resource sector. The natural resource sector is by far the largest water user in the country and thus has a major influence on the sustainability of Canada’s water resources. Over the last decades, there have been significant changes to water use and management by the natural resource sectors. Firm- and industry-level changes have been primarily in response to legislation and technology and process innovations, and not directly in response to changes in the water resources themselves. For most industrial users, usable water resources have generally been sufficient (in terms of both quantity and quality) to support industrial activity. Impacts on water quality vary by sector, but in general are localized and have improved significantly in recent decades. The sector uses large quantities of water that can create localized shortages and lowered water tables. This can increase competition between water users and uses. Water quantity and quality are often interrelated, where impact in one area may influence conditions of the other. Although Canada has a relative abundance of freshwater resources, it is not free from water management challenges. These challenges are expected to be intensified as a consequence of climate change and growing population and economic pressures on the resources. These challenges are predicted to have major implications for all four of the natural resource sectors, including for sector sustainability. Water governance in Canada is a responsibility shared by numerous actors operating at different scales. It is complex, fragmented and, in many cases, inefficient. Canada’s water resources are undervalued. This contributes to the inefficient use of water by the natural resource sector. Economic factors seem not to be a major influence on industry water use. The greatest challenge for managing water resources stems from the combined uncertainties related to climate change, land use activities, and competing demands from all users. Key issues, priorities and opportunities for enhancing water resource management include: • Improved data for planning and management • Data- and evidence-informed decision-making • Improved knowledge translation • The energy-water nexus • Watershed-based management • Improved communication, collaboration and coordination • More accurate valuation of water resources As a convener of diverse and competing interests and a catalyst for sustainability solutions, the NRTEE is advancing a two-year policy research program to enhance public policy knowledge and research and provide recommendations to governments and others on the sustainability of water and the natural resource sectors. 1 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 1.0 Introduction This report provides a snapshot of the relationship between Canada’s natural resource sector and water, and highlights the key issues facing the sector as a result of the impacts of climate change on Canada’s water resources. Canada’s natural resource sector comprises the agriculture, energy, forestry and mining sectors. The energy sector can be further defined by its constituent subsectors oil & gas, thermal electric and hydroelectric production. Unless otherwise specified, references to the energy sector apply to all three subsectors. In several instances, the paper distinguishes each of the oil & gas and hydroelectric subsectors due to their unique water use characteristics. The report is based primarily on a review of literature related to natural resource sector water use, with an emphasis on industry stakeholder perspectives. It is intended as a background paper to support the launch of a new two-year National Round Table on the Environment and the Economy’s (NRTEE) program on Water and Canada's Natural Resource Sectors. 2.0 Overview Canada’s natural resource sector is important to the Canadian economy and to the prosperity and well-being of Canadians. The sector accounts for approximately 15% of Canada’s GDPi, approximately 50% of total exportsii, and directly employs nearly one million Canadiansiii. Water resources, and freshwater resources in particular, are critical to the natural resource sectors. The natural resource sector is by far the largest user of water in Canada, with water being an essential component of operations. Water is essential to many extraction and manufacturing processes, for irrigating crops and for cooling in electricity generation. Water also receives discharges from industrial activities. As the steward of 7% of the global renewable water supply and nearly 20% of the world’s stock of freshwater, Canada enjoys a relative abundance of water resources. However, the country is not free from water management challenges. Droughts are common in some areas. Much of Canada’s water flows north, away from most population centres and economic activity. As demands for freshwater have increased, so too have Canadians’ concerns about water use and quality. Consequently, water has been identified as one of the seven key issues for sustainable development in Canadaiv. From a management perspective, water issues are poised to become more and more important and perhaps more challenging. Population and economic pressures, including a rising global demand for Canadian natural resource products, will increase the stresses on Canada’s freshwater resources. Climate change will surely stress water resources even further. The management challenge will be exacerbated by a growing focus on ecosystem impacts from human activity. 2 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Canada’s natural resource industries are spread across the whole country (see Appendix I – Maps for maps of sector activity and a map of communities dependant on the natural resource sector). The sector is active in every province and territory, although most sector activity is concentrated in southern Canada. Mining activity is projected to increase in northern Canada, while oil sands activity in Alberta is projected to more than double in the period 2004-2014v. Water use and water consumption by the natural resource sectors Box 1: Key water use terms Intake: Amount of water taken from the environment for industrial use Gross water use: Total amount of water used in the production of the product (the sum of intake and recirculation) Consumption: Water that is not returned to its original source, lost in the production process Recirculation: Water used more than once in an industrial establishment The natural resource sector accounts for 86% of gross water use in Canada. The energy sector is, by far, the largest water user in Canada. It accounts for 76% of natural resource sector water use and 60% of total water use by major sectorsvi. Hydroelectric generation uses huge volumes of water, but most is flow-through, so is excluded from these figures. Water consumption by the natural resource sector is low – in 2005, it was approximately 10% of total water intake. Gross water use by the thermal electric, mining and forestry sectors, which collectively account for 90% of total natural resource sector water use, is predominantly for cooling, condensing and steam1 – all non-consumptive uses. Water consumption in these sectors is on the rise, although in absolute terms, remains very low (~2.4% of water intake). Hence, the overall consumption rate for the natural resource sectors is low. Nearly 65% of total consumption is attributable to the agricultural sector, which ‘consumes’ water mainly through evaporative losses. Most of the remainder is attributable to the energy sectorvii. Water consumption is on the rise, however. Most of the increase is attributable to the thermal electric sector, in which consumption has increased by 673% since 1991 (from 132.2 Million Cubic Metres (MCM) to 890 MCM)viii. Table 1: Water consumption by major water users in Canada (in MCM), 2005. Sector Energy Oil & gas Forestry Mining Consumption (MCM) 890 261 166 NA2 Consumption Rate 2.8% 92% 6% NA 1 Note that thermal electric accounts for approximately 85% of this water use, and most water use in this sector is for cooling, condensing and steam. This skews the data when the three sectors are aggregated. In the forestry and mining sectors, approximately 70% of water use is for manufacturing processes. 2 An accurate mining consumption value is not available. Negative mining consumption value results from incomplete reporting of ‘mine water’ intake or overall annual balance fluctuations in tailing ponds. 3 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Agriculture (2001) Municipal (2004) Manufacturing 3,542 565 885 74% 10% 18% Total water use by the oil & gas sector is quite low relative to national water use figures. It is estimated at 284 MCM, of which 92% is believed to be consumedix. However, most oil & gas activity is concentrated in Alberta. As oil & gas sector activity increases over the next decade, water use by the sector is nearly certain to have implications for regional water availability. Water use trends in the thermal electric, mining and forestry sectors Gross water use by the thermal electric, mining and forestry sectors over the period 1986-2005 is presented in Figure 1: Gross water use trends, 1986-2005. Gross water use by these sectors has declined by 10% over the period 1996-2005. This decline reverses a trend of increasing gross water use in the preceding 10-year period 19861995. Overall, gross water use has increased 25% from 1986 to 2005x. Figure 1: Gross water use trends, 1986-2005 However, water intake has increased by 11% since 1996 (see Figure 2: Water intake trends, 1986-2005). The simultaneous increase in water intake and decrease in water use in the period 1995-2005 is attributable to a significant decrease in water recirculation in the thermal electric sector. 4 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 2: Water intake trends, 1986-2005 Water intake source, use and discharge Most natural resource industries (excluding agriculture) self-supply their water needs, largely from freshwater sourcesxi. This is primarily due to the large volumes of (generally non-potable) water required for operations and a reduction in water cost by selfsupplyingxii. Additionally, some natural resource industry facilities are isolated so selfsupply is the only viable means for sourcing water. Industry impacts on water quantity and quality Although water consumption is low, large water withdrawals (especially by oil & gas and energy generation facilities) can create localized water shortages and lowered water tables. Many withdrawals (and discharges) are from (and to) small rivers and tributaries. The volumes can comprise a significant portion of in-stream water, especially during summer low flow periods, and therefore can increase competition between various users and between human and ecological uses. Large withdrawals can also result in higher contaminant concentrations that may impact downstream users. These may result in higher water treatment costs or accelerated salination of soils if water is used for irrigationxiii. Water quality Impacts on water quality vary by sector. • Agriculture: key issues include eutrophication, acidification and acute toxicity • Energy: key issues include heat discharge and impingement and entrainment of aquatic organisms • Hydroelectric: key issues include eutrophication, sediment retention and anoxic conditions • Oil & gas: water discharged is often so polluted it must be sequestered indefinitely in tailings ponds or injected into reserves; concerns about carcinogens and toxic substances entering water systems have also been raised • Forestry: key issues include chronic toxicity and eutrophication • Mining: key issue from active mines is chronic toxicity; key issues from abandoned mines include acidity and acute and chronic toxicity Water quality impacts from the energy, forestry and mining sectors tend to be localized. By contrast, mining sector impacts are generally much longer-lasting and require long- 5 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 term management. This is due to the slow rate of oxidation and transport of oxidation byproducts (i.e. acid, heavy metals, arsenic, etc) through underlying geologic mediaxiv. Water discharges can occur long after mine closure, which is an important issue for mine closure planning. The release of contaminants from waste rock and tailings at abandoned mines is a significant problem across Canada3. Water quality impacts from improperly managed agricultural operations are also local, but because of the many different and diffuse sources of pollution can have combined impacts across large geographic regions. The construction and use of resource roads (by all sectors) has major implications for Canada’s water resources, and is the single most important problem for water management in the forestry sector. The construction and use of resource roads can contribute to landslides, soil erosion, and sedimentation of streams. Resource roads are poorly coordinated and regulated in Canada. Interrelationships between water quantity and water quality Water quantity and water quality are often interrelated. Changes to one, for example through legislation, extreme events or industrial activity, can affect the other. Heavy or extreme precipitation events can increase soil erosion and the movement of nitrates, wastes, and chemical and bacteriological contaminants to surface and groundwater. Earth-made retention structures such as those used in oil sands operations can be compromisedxv. The reliability of mine waste containment dykes is amongst the lowest of all earth-made structures. Bruce Peachey of New Paradigm Engineering states, “The longer the tailings sit there, the more likely there will be a major extreme weather event and a big dyke failure.” In David Schindler’s view, “the world would forever forget about the Exxon Valdez” if a dyke failedxvi. Large water withdrawals, particularly during low-flow periods, can decrease water quality of the water body by concentrating pollutants. Increased pollutant loads in a stable water body will reduce its quality and may make it unavailable for certain uses. Legislation that manages either water quality or quantity can result in changes to water use and impacts by industry. For example, water quality regulations tend to be based on end-of-pipe concentrations. These create a disincentive to reduce water use, since reductions in water use without coincident reductions in pollution may result in exceedances of toxicity-based regulationsxvii. In some cases, water quality legislation has reduced industrial water emissions, and, thus, water intake. Cumulative effects The cumulative impacts of multiple land and water uses are generally not well understood. Mining regulations deal with individual mineral industries and do not take into account cumulative effectsxviii. In the oil & gas sector, individual projects are monitored for environmental risk, but the cumulative effects of projects in a region are notxix. Water pollutants are typically regulated by single parameters. Little is known about synergistic, additive and subtractive effects of multiple interacting pollutants. 3 There are 700 million tonnes of acid waste rock and 1.8 billion tonnes of acidic tailings in Canada. 6 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Water governance Water governance in Canada is a responsibility shared by numerous actors operating at different scales. It is complex, fragmented and, in many cases, inefficient. Water allocation is a provincial/territorial jurisdiction. Allocation rights are determined differently across the country: • Riparian rights apply in Ontario and in the Atlantic provinces • Prior allocation (i.e. “first in line, first in right”) in British Columbia, Alberta, Saskatchewan and Manitoba • Rules based in the civil code are employed in Quebec • Authority management is used in Yukon, Nunavut and Northwest Territories Permitting is the most widely-used instrument for specifying allocations. Except in Alberta, which has moved toward a market-based approach to water allocation through its Water for Life Strategy, all provinces are using water permitting to determine allocations. As of 2007, only seven of the 13 provinces and territories charge any fee for water permitsxx. Some provinces elaborate on fixed vs. volume-based. Although variable across the country, water prices in Canada are generally lower than in other OECD countriesxxi. The permit application processes provide little basis for the efficient allocation of water. The basis for permit fees is not clear. They do not appear aimed at even recovering full program costs. Permit fees, where they exist, are too low to be considered a serious effort to tax rents arising from water use. The undervaluation of Canada’s water resources contributes to inefficient water use across the country. It does not promote conservation-based pricing principles and could be considered a subsidyxxii. More accurate valuation of water resources will encourage more efficient water use and reduce overall water demandxxiii. The adoption of marketbased instruments has been recommended to improve water allocation to their highest value uses, once ecological and basic human requirements are met. Water allocation is a critical aspect of water management: many water supply challenges in Canada are more a function of water (mis)allocation than of water scarcityxxiv. Water allocation is also one of the most controversial topics in water management. Most allocation systems are too rigid to adapt to water use pressures and changes in social and environmental prioritiesxxv. Over-allocation of water resources can result in conflicts between users, especially during low-water conditions. Water use permits are facing over-allocation in the Okanagan basin in British Columbia and in southern Alberta, for example, and water conflicts are occurringxxvi. Restrictions are in place to limit additional water taking. However, the uncertainty around possibly having to pay compensation if water rights are taken away is a significant barrier to restoring water allocations to sustainable levelsxxvii. Over-allocations are partly the result of allocation decision-making based on poor or insufficient baseline data. Surface water and groundwater have generally been managed separately, including via different legislation and sometimes by different entitiesxxviii. Research has increasingly shown their interrelationship and need for management as one collective systemxxix. Most surface water licensing schemes in Canada are oriented toward regulating consumptive use of water rather than ensuring in-stream needs are met. Maintaining ecosystems is at best a secondary considerationxxx. 7 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Allocations for ecological uses are likely to become increasingly important. This will place increased pressure on other water users, such as the agriculture industry and hydroelectric facilities. Ecosystem allocations are most important during low-flow periods to minimize impacts to aquatic lifexxxi. This often occurs during the hot summer months when demand for water in both industries is generally highest. Demand for water for virtually all land use activities is increasing. As a result, water allocation is likely to become even more important. Water conservation efforts have seen limited harmonization across levels of government, although several provinces have taken promising steps. Ontario and Saskatchewan have established watershed authorities, and Alberta is following suit. However, very few Canadian jurisdictions are using the broad spectrum of effective water resource management practices. The greatest challenge for managing water resources stems from the combined uncertainties related to climate change, land use activities, and competing demands from all users. In some regions, water availability (including the timing and nature of recharge and flow) will be a key source of uncertainty. 3.0 Sector approaches to changes in water quantity and quality Water is a critical resource for natural resource sector activity, both as an input to industrial activity and as an outlet for wastewater discharges. Industry users therefore have a fundamental interest in ensuring sustainable access to usable water resources. This is an essential concern for sector sustainability and a major focus for environmental risk and water management. Over the past several decades, natural resource sector water use and consumption have risen, while the sector has reduced impacts on water quality considerably. Sector water use increase has occurred during a period of general economic growth of the sector, which has resulted in improvements in water use intensity despite overall an water use increase. Reductions in water quality impact and improvements in water use intensity have been achieved via a range of firm, industry and wider sectoral responses to water management. It is important to note that industrial water management efforts have been primarily NOT directly in response to changes in the water resources themselves. For most industrial users, usable water resources have generally been sufficient (in terms of both quantity and quality) to support industrial activity. Most industry users account for only a fraction of total water use within a particular watershed. Local water concerns thus are typically an overriding consideration only for specific projects, rather than for firm-level activity. Instead, industry water management activity, on the whole, has tended to be reactive to legislation and technology and process innovations. Box 2: Industry responses to changes in water resources quantity and quality In some cases, natural resource sector businesses have responded directly to changes in water resource quantity and quality. 8 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 In 2007, Ontario Power Generation shut down one of its Pickering reactors as a result of a Cladaphora algae bloom that reduced the flow of lake water into the reactor’s cooling system. The blooms are linked to warmer water temperatures and are likely to get worse as a result of global warming and other factors. OPG subsequently installed a mesh barrier to reduce algal build-up around an intake pipe. It estimates that Cladophora fouling of cooling water intakes has cost the company more than $30 million in lost power production in the past 12 years. Agricultural producers have integrated many strategies into existing farm management practices to accommodate for weather and climate risk. These include used grassed waterways, diversion terraces, strip cropping, buffer zones around watercourses, and the diversion of water into ponds and lagoons for later use for irrigation. Suncor has made use of advances in technology to pursue increased production of 40% without needing to increase the company’s water license. One of its facilities currently uses no fresh water. Gord Lambert, Suncor’s VP of Sustainable Development, states “we are flipping the paradigm from the myth of water abundance to the reality of water scarcity.” Scotia Capital warned in 2007 that the oil sands industry probably has “another one to two years before [the water] issue comes to the forefront, at which point approvals will become more difficult to obtain [adding a premium to those companies whose projects are pre-approved, or projects that use no water].” In time, the same may prove true in each of the other natural resources sectors. Regulatory requirements have been major drivers of industry water management, in respect to both water quality and, increasingly, water quantity. Water Quality Water quality regulations have yielded significant improvements in industrial effluent quality over the past three decades. For example, the Pulp and Paper Effluent Regulations (PPER) law yielded significant reductions in water pollution. The Metal Mining Effluent Regulations (MMER) law, which was introduced in 2003, is considered a world-leading standard for mine effluent quality; in its first full year of implementation, mine compliance was considered to be very good. Water Quantity Changes to water resource availability are occurring due to climate changes, but not in simple waysxxxii. Studies show that maximum flows are tending to decrease significantly across most of Canada, while there are indications of earlier freshets for river basins characterized by snowmeltxxxiii. There is also evidence that glacier melt contributions to water flows are decreasing as many glaciers have undergone extensive retreat. This may impact summer low-flow conditions in particularxxxiv. Climate extremes have also been shown to significantly affect lake heat storage, temperature and evaporationxxxv. One non-industry stakeholder indicated that the contribution to surface water flow from early summer glacier melt may decline but may be made up by larger precipitation events throughout the year. Thus increased water storage opportunities might become economically viable. Already some oil sands operations have build private water storage opportunities. There is a patchwork of emerging institutions that address water quantity concerns. These include new legislation and associated regulations around water taking, increased priority to ecological allocations and multi-sector water conservation programs. In western Canada, where water scarcity issues are present, market-based instruments have been introduced to help direct water to highest priority uses. However, very few (if 9 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 any) Canadian jurisdictions are using the broad spectrum of effective water management practices (see Water governance). Economic factors seem not to be a major influence on industry water use. In 2005, total water costs for the thermal electric, mining and forestry sectors were $779 million. This includes the costs for water licenses, withdrawal, recirculation, discharge and discharge treatment. This is a 62% increase over water costs in 1996, but still remarkably lowxxxvi. It amounts to a unit cost of only is $0.02/m3. By contrast, Canadian municipalities pay $0.31/m3 on average, and their costs are among the lowest in the OECDxxxvii. Spending on water acquisition (License fees, public utilities, and operation and maintenance costs) in 2005 was $159 million, or 20% of total water cost. Nearly all of this expense is from pumping and treating water. Water licenses accounted for less than 1% of acquisition costs and less then 0.2% of total water costsxxxviii. Thus, for most firms, the cost of using water is almost negligible. This is especially the case for large industrial users, nearly all of whom self-supply their water needs. This has resulted in widespread water use inefficiencies across the natural resource sectors. Firm-level approaches to water management Industry stakeholders have responded to water management issues with a range of firmlevel management, technology and process innovations aimed at ensuring sustainable access to and use of water resources. Matching water quality to need Many industrial water uses do not require high-quality (potable) freshwater. High quality water can be used for many purposes but is often in shortest supply. Low quality water can only be used for a few purposes but larger volumes are often availablexxxix. Opportunities exist to conserve high-grade water resources by supplying some demand with low-grade supplies. For example, one Petro-Canada facility uses only saline groundwater for steam production and recovers and recycles its wastewater, thereby avoiding any freshwater use in its operation. Across the oil & gas sector, this approach has generated a tenfold increase in saline groundwater use over the last 20 years. A proposed partnership between Edmonton-based Epcor and as many as 15 oil sands upgraders is gaining support from government and industry. If the project is approved, the company will pipe treated wastewater to the heavy oil upgraders and save equivalent volumes of freshwater withdrawals from the North Saskatchewan River. The project would simultaneously reduce the chemical loads entering the river, provide a secure water supply for the oil sands operations and reduce demand on the freshwater resourcexl. On-site water storage and other infrastructure developments Some facilities have developed private on-site water storage capacity to buffer declines in water availability. For example, some newer approved oil sands mines have up to 30 days of on-site water storagexli. This is most common in the agricultural and oil & gas industries in the Prairies. Technological and process innovations There are many examples of technology and process innovations that have improved industrial water use, including reducing total water need, increasing water reuse and efficiency and by improving effluent quality. Precision mining and new technologies such 10 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 as pulverized coal and fluidized bed production have increased water use efficiency in the mining sector. The adoption of advanced irrigation technologies, such as automated irrigation scheduling, low-pressure applicators and drip irrigation, have been shown to significantly reduce evaporative water losses. Some forestry companies have started using high-flotation tires on their vehicles to help navigate wet or washed-out conditions, thus enabling them to work in a wider range of weather conditions.xlii Farm management practices Many strategies are integrated into ongoing farm management and practices to accommodate for climate and weather risks. Proactive measures regularly used include trapping snow with stubble from the crops, diversifying crops to include those with greater drought resistance, and employing crop rotation to improve soil quality. Increasingly, growers are taking advantage of technological innovations such as irrigation systems linked to real-time weather data, frost-resistant strains developed through genetic modification, and establishment of sloughs and ponds to capture and protect as much water as possible. Policy and Governance Approaches to Water Management There has been a suite of policy and governance tools implemented to improve natural resource sector water use. Government regulation and policy Legislated actions, targets and processes for water management have been the primary driver of industry water activities to date. Most regulations have been directed at reducing water quality impacts – for example, by increasing effluent standards and controlling access to water resources. All provinces have policy frameworks that specify the sustainable development and productive use of water as an intended goal. However, few (if any) are using the full suite of policy tools needed to achieve this goal. Alberta’s Water for Life strategy sets the framework for a collaborative, partnershipbased and multi-level approach to water resources management. The province’s recently introduced Land Use Framework and Cumulative Effects Management Approach aims to integrate land use and water management. These two efforts reflect a wider push toward more integrated, collaborative, watershed-level approaches to water resource management. Voluntary initiatives Various voluntary initiatives have been developed to improve overall environmental management across the different natural resource sectors. For example, the forestry sector has three forestry certification programs for forest management: Canadian Standards Association, the Sustainable Forestry Initiative, and Forest Stewardship Councilxliii. The mining sector has advanced the Toward Sustainable Mining (TSM) initiative and environmental codes of practice for metal mines and base metal smelters and refineries. Many firms have also adopted ISO 14000 or other environmental management systems in an effort to improve overall environmental performance. Some 11 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 of these initiatives explicitly include principles and commitments aimed at improving water sustainability. For example, the Forest Stewardship Council requires written guidelines to control erosion and protect water resources. It includes guidelines on harvesting rate and techniques, road and trail construction/maintenance and choice of tree species to prevent adverse impacts on water quality, quantity or substantial deviation from stream course drainage patternsxliv. Best practices Various organizations have compiled and disseminated case studies and best practices. For example, the Mining Association of Canada (MAC) has a Guide to the Management of Tailings Facilities. The Canadian Association of Petroleum Producers (CAPP) is in the final stages of completing a water use best practices document for its members. The agriculture sector has been particularly effective at collecting together best practices related to various land-use and water management activities. Many have relevance to reducing water impact or adaptation to climate change, even if not explicitly acknowledged. Research and development Many industry stakeholders participate in or fund research and development (R&D) in new technologies and better production processes. Their participation and support may also extend into areas such as water systems and climate impacts, and processes such as watershed-level governance and water management. For example, oil & gas industries fund the Petroleum Technology Alliance Canada, which facilitates collaboration on R&D between members within the oil and gas industry. Water-related work includes research on ecotoxicity and the development of water quality guidelines. They have also participated in knowledge exchange in respect to various water issuesxlv. Some hydroelectric industries have joined in collaborative research ventures or funded their own climate impacts research. For example, the Ouranos Consortium formed between academic partners, the Quebec government and Hydro-Québec to conduct integrated research projects on climate impacts and adaptation and develop regional climate projections. Areas of focus include: northern and maritime environments; energy, forestry and water resources; agriculture, health, transportation and infrastructure, and natural ecosystems and biodiversityxlvi. This has been observed as a model of successful collaboration that should be followed. 4.0 Climate change impacts on water resources: Implications for sectors Some of the most significant and pervasive impacts of climate change in Canada will be related to water resources. Water-stressed areas will expand due to decreased runoff in many areas resulting from changes in precipitation and increased evapotranspiration, while reduced water quality and quantity will be experienced on a seasonal basis in every region of Canada. These changes are likely to impact across all of the natural resource sectors. Impacts will be cumulative and frequently synergistic. For example, increased frequency and magnitude of heat waves will result in increased peak electricity demand, while simultaneously decreasing river flows and lowing water levels that will reduce hydropower capacity. 12 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Climate change risks and impacts are increasingly being considered in industry planning and policy decision-making alongside other risk factors. Agriculture Changes in the frequency and intensity of extreme events have been identified as the greatest challenge that would face the agricultural industry as a result of climate change. Already climate variability has stimulated the adoption of irrigation to compensate for drought stresses and protect yieldsxlvii. To reduce impacts from extreme weather events, producers are using a variety of measures beyond traditional farming practices (see Box 2). Some of the soil and water strategies in use include: diverting water into ponds and lagoons for later use in irrigation, using cover crops on early harvested land and placing hay mulch on sloped land after late harvest to reduce soil erosionxlviii. Other strategies are being integrated into ongoing farm management practices to accommodate for climate and weather risk. For example, many producers have adopted Environmental Farm Plans to enhance soil and water conservation.xlix In the Prairies, where 75% of agricultural water withdrawals occur, climate change impacts on water will have major implications for the agricultural sector. Glacial meltwater flows, which contribute significantly to rivers in western Canada during summer months, will cease to exist within the next 50 to 60 yearsl. Higher average temperatures may also lead to increased demand for irrigation water at precisely the same time that supplies will be lowest. Some agricultural producers in the Peace River region indicated they are aware of signals of a changing climate, but are not overly concerned. They welcome a moderation of the severe winters and short growing seasonsli. Forestry Rain and flood events can affect resource roads, bridges and other infrastructure vulnerable to flooding, and thus impact on industrial operations. Forest industries may need to adapt infrastructure accordingly. In some cases they already are. A Nova Scotia company is building higher and wider bridges, rather than culverts, to accommodate for increases in rain and flood eventslii. Other companies have started using high-flotation tires on their vehicles to help navigate wet or washed-out conditions, allowing them to work in a wider range of weather conditionsliii. Industry stakeholders would benefit from better forecasts of the timing of the freshet and flood return periods. This would enable better infrastructure risk managementliv. Higher temperatures and drier conditions are a concern for seedling planting and risks from forest fires and insect pests. One east coast forest company identified that they are already experiencing increasing levels of dryness during seedling planting. Forest fires are expected to increase in frequency, extent and severity due to longer fire seasons, drier conditions and more lightning storms. Flannigan et al. (2005) estimates a 74%118% increase in total burn area by 2100. Insect pests are expected to respond rapidly to climate changes. Higher temperatures will generally benefit insects by accelerating development, expanding ranges and increasing over-winter survival rates. Timber losses due to insect infestations are estimated to exceed losses due to fire in Canadalv. Cumulative impacts from disturbances are also likely. For example, an increase in defoliation by insect outbreaks could increase the likelihood of fireslvi. 13 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 The implications of these changes for watersheds are similar to the impacts from timber harvesting: changes in water table levels, streamflow quantity and regime, water quality, erosion, and sedimentationlvii. Many of the forest management activities required to address climate change are already part of current practice. It is the location and intensity of these problems that will change and challenge the sector’s ability to cope and adapt.lviii NRCan reports that a strong case can and should be made for the importance of planned adaptation, in which future changes are anticipated and forestry practices (e.g., silviculture, harvesting) are adjusted accordingly. This is especially important in cases where rotation periods are long. However, uncertainties about timing, location and magnitude of future changes are challenging planned adaptation responses in forest managementlix. One stakeholder, speaking to specifically to drought, indicated that there are presently too many unknowns to properly respond with risk management interventions. This is emblematic of a ‘wait and see’ approach to climate change that seems common across the wider community of forest managers. Mining Industrial metal mining, which is predominantly based in southern Canada, is usually in pits and quarries. Current climate conditions yield occasional road washouts, erosion of quarries and pits and slumping in some areas. Drought conditions increase dust from movement of heavy equipment. Dust can impact on both residential communities and the surrounding watershed. Changes to the climate conditions including periods of precipitation and drought will exacerbate these areas of concern. Expected water level reductions in lakes and rivers will reduce the amount of water available for dust suppression and impact quarry operations. Low water levels in the Great Lakes will also impact on the movement of mined materials across the basinlx. Warming temperatures in Ontario will lead to increased evapotranspiration of tailings ponds, resulting in the exposure of raw tailings and sub-aerial weathering. Wind erosion of the exposed fine grained tailings will facilitate the acidification of the watershed resulting in metal and radionuclide releaselxi. Reduced water in lakes and rivers may reduce water availability for mining operations. It may be necessary to increase water recycling and to find alternate supplies. Warm dry temperatures in 2005 reduced water levels throughout the watershed near the Williams, David Bell and Golden Giant Mines. In response, efforts were made to reduce watertakings, increase water recycling for process water and find alternative supplies for emergency purposes. Infrastructure was also established to move water from tailings ponds, pits and quarry for underground use (Brown et al, 2006)lxii. Much of the Arctic is semi-arid, so there are limited water supplies for diluting effluents. This may become increasingly important as the Arctic opens to increased mining and oil & gas activity. Periods of both drought and extreme precipitation will impact mining infrastructure. Tailings impoundments currently capped with water to prevent oxidation and acid mine drainage risk flooding and the subsequent release of contaminants where heavy rainfall events occur. Slope stability and erosion of engineered berms are also vulnerable to extreme precipitation along with risks to road access. Safe water management requires 14 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 strong predictive capacity. Accurate predictions of drought conditions are needed to ensure adequate water for flooding mine wastes and diluting effluents. Accurate flood predictions are needed for the safe design of retaining dams, collection and treatment systems, diversion structures, and water coverslxiii. There is increased interest in the use of permafrost for stability of waste-rock piles, tailings piles and tailings-containments. However, as the Giant Mine story in Box 3 illustrates, permafrost-based structures are vulnerable in a warming climate. Box 3: Mining in the Arctic Giant Mine is a former gold mine, located 5 km from the city centre of Yellowknife, Northwest Territories. Its owner, Royal Oak Mines Inc. operated the mine for over 50 years before going into receivership in 1999. Royal Oak used what was considered by government agencies and scientists in the 1950's to be a safe, long-term approach to storing lethal arsenic trioxide dust. Throughout its operating life, the mine operators stored the arsenic in underground chambers cut into the rock. They expected that when the mine closed, the natural permafrost would re-establish itself around the chambers, forming a plug to seal in the arsenic. However, some of the chambers are now leaking and contaminating groundwater. The cause: warming temperatures melting the ground ice and thus compromising the plug. Since Giant Mine's closure, the government of the Northwest Territories and the federal government have implemented a remediation plan for the site, using a ground freezing technology that is less vulnerable to climate variation. The Canadian Environmental Assessment Act now requires that climate change be considered in the design phase of major infrastructure projects proposed for the North. For example, in planning the Ekati diamond mine, potential climate change impacts were considered in the design of the mine’s frozen-core tailings damslxiv. Hydroelectric generation Hydroelectric industry stakeholders recognize the threat from climate change to longterm, reliable water availability and from extreme events, which are both critical issues for sector sustainabilitylxv. More extreme weather activity and other hydrologic changes may require changes in design standards and management practices for dams and reservoirslxvi. Most hydroelectric producers have been reactive toward climate changes and events. The industry tends to adapt to experienced climate events with observed climate extremes becoming design targets. The notion of proactive planning (in contrast to reactive planning) is relatively newlxvii. Stakeholders suggested that operators were not using climate science and that a focused effort was needed to convince managers and operators to use the science. Stakeholders also indicated that uncertainties in climate projections were too great to enable climate model outputs to be used for watershed-level risk management. Models can, however, be used to develop plausible what-if scenarios for scenario planninglxviii. Many utilities have undertaken or are undertaking impacts and vulnerabilities assessments and studies. It is intended that results will be incorporated as a component of risk management strategies and into existing operating and planning processeslxix. Stakeholders identified the need for improved science and tools to support decisionmaking. One specific suggestion was for an industry-wide comparison of system design/operation tools. This type of study would enable sector-wide learning of adaptation approacheslxx. 15 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Due to the many uncertainties, stakeholders emphasized the importance of flexibility – both in the hydroelectric power management/operations and in the water licensing and allocation frameworkslxxi. Oil & gas production One industry contact indicated that climate change has been considered in Alberta operations, but has had little influence because industry activity is clustered in northern Alberta, where there are abundant water resources and little competing demand. Climate change may be more of a concern in the south, where water is more scarce but where industry operations are much smaller. Water recirculation methods may have to be adjusted and adopted to accommodate anticipated changes. 5.0 Sector Scan Results: Key Issues and Perspectives Improved data for planning and management Industry and non-industry stakeholders have highlighted the need for more and better data on hydrologic systems, processes and resources, water balances, ecosystem water needs and on water use by the natural resource sectorlxxii. This is essential for informed planning and decision-making both at the firm-level and for sector-wide decision-making, including for evaluating the effectiveness of various water management alternatives. In a recent paper, the Petroleum Technology Alliance of Canada stated that, “rapidly growing demands for water, where data is limited due to reduced government-supported datagathering in the last 20 to 40 years, will drive and limit development.”lxxiii There is strong agreement that Canada’s water monitoring system is lackinglxxiv. The system needs more monitoring stations, greater coordination and common standards for measurement and reporting. Water resources are managed and monitored by a variety of jurisdictions and for a variety of uses. Access to data can be quite limited. There is no common reporting standard, so there are inconsistencies in the data. For data to be usable, it needs to be accessible and consistentlxxv. Stakeholders also highlighted the need for improved climate models. Models may be useful, but for their application to watershed-level planning and decision-making, their uncertainties need to be reduced. Large numbers of modeled scenarios makes scenario planning difficult. Fewer scenarios would make the task more manageablelxxvi. Improved flood and drought predictive capacity is very important, both for short-term management and longer-term adaptationlxxvii. Factoring climate changes into flood frequency analysis and flood risk mapping is a particularly important challengelxxviii. Data- and evidence-informed decision-making Industry stakeholders highlighted the need to ensure decision-making, including regulatory policy development, is based on sound science, data and evidence, and not on public perceptions and (mis)conceptions. They expressed concerns that regulatory activity is, at times, being driven too much by public perceptions, and that excessive regulatory hurdles can result from a desire to satisfy public perceptions of industry water use. 16 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 One stakeholder commented that integrated water resource management (IWRM) is “less useful [as a policy tool] … it has a tendency to become somewhat arbitrary and unduly influenced by political considerations, rather than being based on technically sound sustainability objectives.” In part the issue again is the need for enhanced data collection, as well as greater access, consistency and sharing of available data. Knowledge translation There is much knowledge and experience within industry, academia, government and communities. Mechanisms to synthesize and enhance access to this knowledge and experience would help facilitate decision-makinglxxix. Web-based interfaces, such as the National Land and Water Information Service and GeoConnections, may be useful in facilitating knowledge dissemination and exchangelxxx. The energy-water nexus Water and energy use are intertwined. Water is used extensively in energy production, and energy is used to pump, treat and distribute water. The two issues are mutually reinforcing. If water intake volume goes down, energy used to pump and treat water will go down. Additional energy savings accrue from avoided water reuse and wastewater treatmentlxxxi. Technologies and management practices to reduce water and energy use exist in all sectorslxxxii. Examples include: pumping water at off-hours to reduce energy costs (in some areas) or implementing water and energy efficient technologies in agriculture, such as low-pressure applicators and drip irrigationlxxxiii. Similarly, policy and other initiatives primarily aimed at reducing carbon emissions may lead to more efficient water use. However, the impact on water resources of widespread adoption of carbon sequestration technologies is unknownlxxxiv. Watershed-based management The social-ecological-economic systems within which the natural resource sector operates are complex and highly interrelatedlxxxv and, as several stakeholders noted, characterized by many uncertainties. Each watershed and potentially each sub-surface aquifer basin have unique characteristics, local issues and water users. As indicated above, the cumulative impacts of multiple land and water uses are generally not well understood, and management responses are generally not directed at cumulative impacts. As such, each requires unique solutions. Management approaches should be designed and practiced accordingly. A blanket application of policies and management processes may not be appropriatelxxxvi. It is essential that water management institutions be flexible and adaptable. Flexibility and adaptability will enable water institutions to more effectively anticipate and respond to future problems, and will allow for variation across the country. New tools and frameworks are needed to assess and manage water resources in a more integrated way. Existing legal and regulatory tools can be improved, however, governments will need also to be able to respond to innovations in the wider governance environment. If regulations are results-based instead of prescriptive, they can stimulate innovation by encouraging more effective or efficient solutionslxxxvii. 17 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Improved communication, collaboration and coordination There is a clear need for improved communications, coordination and collaboration across the diversity of water stakeholders. This has been widely communicated elsewhere and reiterated in this report. This need is true across the spectrum of water management activities, including in respect to data management, policy and governance tools and knowledge translation. Stakeholders also highlighted the need for more open and transparent communications with the public. These efforts would promote better public understanding about natural resource sector activity and work to counter public misconceptions about industrial water use and impacts, which can hinder resource management activities. More open and transparent communications would also enable more effective public participation in water resources management. A government source also highlighted the important role of federal government departments and agencies in water resource management. Government policies with respect to watershed management could contribute to the development of human, technical and financial capacity. Place a value on water As discussed in the Water governance section above, economic instruments have not been used widely across the country. Wider use of market-based instruments has been recommended to achieve a more efficient allocation of Canada’s water resources. Many economic instruments are available for valuing water, including water use licenses, volume-based pricing and effluent charges. The use of economic instruments to value water is still relatively new in Canada. However, there have been a few implementations, and from these, some lessons learnedlxxxviii: • The length of time required for public consultations on water conservation is easily underestimated; • A broad-based approach to implementation, rather than targeting a specific industry, appears more acceptable to stakeholders; • Public perceptions of the value and abundance of water in Canada can be a significant barrier to instituting economic incentives; • A regulatory foundation to undertake water conservation is important. Most cases of implementing economic instruments in Canada have been done as part of a series of complimentary initiativeslxxxix. Case studies strongly suggest that economic instruments are more effective when combined with education and advertisingxc. One stakeholder commented that no one tool, in and of itself, is sufficient. It is the suite of tools, and the participation of all that is required, as they are all interrelated and needed to achieve desired outcomes. Municipalities have the authority for implementing most economic instruments. This partly explains why provincial governments have not widely introduced such instrumentsxci. Stakeholders have indicated that water valuation methods are relatively easy to incorporate into existing decision-making processes. If structured properly, water 18 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 valuation can create a fair playing field where water users can compete for the resources on the basis of net social value. Sawyer et al. (2005) notes that full-cost accounting can be useful, as long as all users are subject to the same requirements. They add that there is often a perceived inequity when one industry is initially targeted as a first step in implementing economic instruments. This ultimately slows the implementation of economic instruments. A broad-based application of economic instruments seems both more acceptable and more expedient. Hydroelectric stakeholders indicated that an expanded scope for the valuation of water and water systems within various climate scenarios is valuable. An oil & gas industry stakeholder noted that water valuation may generate opportunities to treat and sell some of the large volumes of saline water that is currently produced and subsequently re-injected. Effluent charges have been recently introduced in British Columbia to reduce water pollution. International experiences indicate effluent charges can be effective when implemented in conjunction with other toolsxcii. Since effluent charges are volume-based, they can sometimes also induce water conservation and water use reductions. Studies have shown that when the price of water or effluent discharge increases, industrial water demand is reduced mostly through increased water recirculationxciii. Stakeholders identified a related issue: the need for life-cycle analyses of different water uses and an assessment of the societal value of different water uses. Including externalities in the full cost is difficult, as different surveys/methods may lead to different results, while measuring the numerous positive and negative externalities can be cumbersome and onerous. The greatest difficulty is the time and place dependency of the environmental costsxciv. Controlled, collaborative experiments would allow an examination of how economic instruments, in conjunction with other policy tools, can contribute to more sustainable water management. Experiences could then be applied to other jurisdictions and additional experimentsxcv. Nearly all natural resource sector industries compete in global markets, thus maintaining competitiveness is critical. One stakeholder indicated that industry sustainability could be threatened if water resources cannot be attained at a cost that maintains global competitiveness. Demands on industry to meet both global economic and environmental objectives are sometimes at odds. Climate change may exacerbate this issue. Conclusion This paper reviewed key features of the relationship between Canada’s natural resource sector with water and highlights the key issues facing the sector as a result of the impacts of climate change on Canada’s water resources. Freshwater resources are critical to the natural resource sector, both as an input to industrial processes and as an outlet for industrial wastewaters. Although Canada has an abundance of freshwater resources, it is not free from water management challenges. Rising and competing demands for water resources create water quantity and quality 19 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 issues as well as allocation challenges. These challenges are expected to intensify as the consequences of climate change and increased demands take hold. They are having, and will continue to have, significant impacts on ecosystems and are predicted to have major implications for the natural resource sectors, including potentially serious economic impacts. Industry and other stakeholders have identified many ideas for improving water governance and management. These include: improving data collection and management and applying sound evidence-based decision-making; improving knowledge translation; achieving synergies between water and energy management; moving toward watershed-based management; improving communication, collaboration and coordination; and more accurately valuing Canada’s water resources. No single approach will be sufficient for achieving sustainable water resource management – a suite of tools, together with wide participation by industry and other stakeholders, will be necessary. As a convener of diverse and competing interests and a catalyst for sustainability solutions, the NRTEE is advancing a two-year policy research program to advance public policy knowledge and research and provide recommendations to governments and others on the sustainability of water and the natural resource sectors. 20 Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Appendix I – Maps Figure 3: Resource Reliant communities in Canada (30-100%), 20014 4 Natural Resources Canada. “All Resource-reliant Communities, 2001.” http://atlas.nrcan.gc.ca/site/english/maps/economic/rdc2001/rdcall (accessed February 5, 2009). i Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 4: Active mines in Canada, 20065 5 Bernstein, Rachel, Eros, Mike and Meliany Quintana-Velázquez, Mineral Facilities of Latin America and Canada. Washington: U.S Geological Survey, 2006. ii Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 5: Pulp and Paper mills in Canada, 20036 6 Lee, Peter, Zoran Stanojevic and Jeannette Gysbers. Canada’s Forest Product Mills, 2003. Edmonton: Global Forest Watch Canada, 2004. iii Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 6: Operating areas of Canada’s largest forestry companies7 7 Global Forest Watch Canada, “Operating Areas of Canada’s Largest Forestry Companies.” http://www.globalforestwatch.org/common/canada/map.5.JPG (accessed February 5, 2009). iv Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 7: Agricultural water use in western Canada, 20018 8 Beaulieu, Martin S., Caroline Fric and François Soulard. Estimation of Water Use in Canadian Agriculture in 2001. Agriculture and Rural Working Paper Series. Ottawa: Statistics Canada, 2007. v Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 8: Agricultural water use, eastern Canada, 20019 9 Beaulieu, Martin S., Caroline Fric and François Soulard. Estimation of Water Use in Canadian Agriculture in 2001. Agriculture and Rural Working Paper Series. Ottawa: Statistics Canada, 2007. vi Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 9: Nuclear facilities in Canada10 10 Millenium Ark. “Canada’s Nuclear Reactors.” http://standeyo.com/News_Files/NBC/NukesCan.html (accessed February 5, 2009). vii Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 10: Coal-fired electricity facilities11 11 Coal Association of Canada, “Coal Related Maps” http://www.coal.ca/content/index.php?option=com_content&task=view&id=32&Itemid=55 (accessed February 5, 2009) viii Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 11: Hydroelectric facilities in Canada, 200312 12 Statistics Canada. Human Activity and the Environment: Annual Statistics 2003. Ottawa: Government of Canada, 2003 ix Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Figure 12: Alberta oil sands project locations, 200613 13 Griffiths, Mary, Amy Taylor and Dan Woynillowicz. Troubled Waters, Troubling Trends: Technology and Policy Options to Reduce Water Use in Oil and Oil Sands Development in Alberta. Drayton Valley: The Pembina Institute, 2006. x Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Glossary of Terms Agriculture sector: Comprised of crop and livestock production subsectors. Economic instrument: Any economic tool or method used by an organization to achieve general developmental goals in the production of, or in the regulation of, material resources. An economic instrument tries to stimulate an economic actor to voluntarily adopt a certain behaviour. The underlying rationale is that human beings react to price incentives—when prices are high less resources will be consumed. Energy sector: Comprised of thermal electric, hydroelectric and oil & gas subsectors. Forestry sector: Comprised of logging, wood products and paper products subsectors. Mining sector: Comprised of coal, metal ore and non-metallic mineral mining subsectors; excludes sand and gravel quarrying. Mining: excavation for the purpose of extracting valuable minerals from an economic ore deposit. Can be a surface or open mine or an underground mine. Natural resource sector: Comprised of the agriculture, energy, forestry and mining sectors. Non-consumptive water use: Water withdrawn for use then returned to the environment. Recirculated water (recirculation or recycling): Water used more than once in an industrial establishment. Thermal electric generating facilities: Mechanical power is produced by heating steam to turn a turbine. Includes fossil fuel fired generating plants (coal, oil and gas) and nuclear plants. Wastewater discharge: Water that is returned to the environment after industrial use. Water discharge and water consumption together form the effluent subsystem. Water consumption: Water that is not returned to its original source, lost in the production process. The major portions of consumed water are escaped steam, evaporation from irrigation and the incorporation of water into a product. Water intake: Amount of water taken from the environment to replace water discharged or consumed during operations. Water use: Total amount of water used in the production of the product – the sum of total water intake and water recirculation. xi Water and Natural Resources in a Changing Climate: Sector Assessment January 2009 Bibliography AMEC Earth and Environmental. Current and Future Water Use in Alberta. Edmonton: Alberta Environment, 2007. Beaulieu, Martin S., Caroline Fric and François Soulard. Estimation of Water Use in Canadian Agriculture in 2001. 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