Coordination between the water, energy, food and environment sectors is fraught with difficulties at the national level, the complexity of which increases substantially in transboundary basins. The “nexus approach” to managing interlinked resources has emerged as a way to enhance water, energy and food security by increasing efficiency, reducing trade-offs, building synergies, and improving governance, while protectin. Policy Brief : Improving welfare in the Alazani/ Ganykh River Basin region through a transboundary nexus approach The sustainable use and management There are multiple linkages in the Ala- of the Alazani/Ganykh Basin’s resourc- zani/Ganykh between the different ba- es is essential for the development of sin resources. the riparian regions in and . Energy-land and land-water linkages are particu- larly strong. But second-degree linkages are also The Alazani/Ganykh, a sub-basin of the Ba- significant – for example, the lack of modern fu- sin, extends over an area of 11,717 km2. The basin els in the upper basin leads to fuel wood collec- has productive agricultural land, attractive land- tion and consequent deforestation. This creates scapes, and abundant and high quality water land erosion and sedimentation, which in turn resources. Some 70% of Georgia’s vineyards are affects water resources and infrastructure. Sali- located in the region of which roughly ent infrastructure includes irrigation systems and corresponds to the Georgian part of the basin. hydropower plants that are mainly of run-of-the- The agriculture and tourism sectors are expect- river type, located on the tributaries.community ed to drive development in the riparian regions. livelihoods, providing foraged food, fuel and tim- The renewable energy potential, hydropower in ber. And low carbon electricity production con- particular, is locally significant although because tributes to significant reductions in greenhouse of their geomorphological characteristics – at gas emissions. least in the upper tributaries – hydropower de- velopment is risky. Improving energy access and affordability in rural areas also contributes to the improvement of rural livelihoods.

Basin limits Georgia

Azerbaijan The basin’s resources are increasingly un- The Alazani/Ganykh nexus assessment der pressure. has identified a menu of solutions to ad- dress specific intersectoral challenges in Economic development is driving demand for the basin. the supply of water and water transfers to cities outside the basin, raising the levels of agricul- Institutional solutions include strengthening be aimed at improving the monitoring and as- water supply and sanitation, and developing tural and household pollution and increasing basin governance, developing mechanisms sessment of basin resources and uncontrolled environmental flow regulations. Infrastructure the exploitation of hydropower potential. De- to incorporate wider nexus impacts into sec- hotspots, assessing intersectoral linkages when solutions include investment in the preserva- spite reduced levels, poverty is still an issue, and tor-based policy development, engaging wa- developing sectoral plans or assessments, and tion of water resources (e.g. modernising irri- because of excessive logging for fuel wood and ter-user sectors in the ongoing development providing extension services to upgrade agri- gation and wastewater treatment), developing the poor maintenance of riverbanks and irriga- of water laws, strategies and plans; clarifying cultural and forestry practices. Implementation an approach to investing in flood risk manage- tion infrastructure, is driving erosion and sedi- roles and responsibilities (e.g. in relation to the of policy instruments should focus on improv- ment measures, ensuring that new hydropower mentation. In addition, recurrent flooding of maintenance of riverbanks), and leveraging the ing land use planning, promoting the replace- plants maximise benefits across multiple uses, agricultural plots contributes to soil loss. support of development partners. Information ment of fuel wood with modern fuels, reforming and promoting the development of renewable solutions in the Alazani/Ganykh Basin should agricultural support packages, better managing energy sources other than hydropower. A transboundary nexus approach ena- bling cross-sectoral and cross-country in- terventions is needed to address current challenges. ALAZANI / GANYKH BASIN NEXUS CURRENT STATUS ALAZANI / GANYKH BASIN NEXUS CURRENT STATUS Intersectoral planning needs to be strength- ened at national level. The preparation of the WATER National Water Strategy of Azerbaijan and the WAT ERGY WATER ER FO R EN R FO updating of the Georgian Water Law provide Hydropower has the highest share FO WA OD Agriculture is the most important ER RGY TER F & AT ENE OR F LA opportunities to strengthen intersectoral coor- of water withdrawals W OR OO ND sector in the basin (wine production) Hydropower has the highest share R F D & Agriculture is the most important TE L dination of water-user sectors. Whilst there is of water withdrawals A AN Small hydropower developed W D sectorExtensive in the basin and degraded(wine production) irrigation schemes currently good transboundary cooperation at Small hydropowerwhere geology developed allows Extensive(significant and water degraded losses) irrigation schemes the technical level, management of the nexus where geology allows (significant water losses) requires stronger transboundary governance. The two countries are currently negotiating a transboundary agreement on the shared water Services: resources of the Kura Basin, to which the Alaza- Fosters biodiversity ProtectionServices: against flooding ni/Ganykh belongs. Concluding that agreement Fosters biodiversity Water quality affected by fertilizers, No large-scale and landslides therefore represents a valuable opportunity for TourismProtection potential against flooding Waternutrients quality and pesticides,affected by storage fertilizers, of obsolete wastewaterNo large-scale treatment Fuelwoodand landslides and fish pesticides, and ineffective waste management

different water-using sectors to engage in bet- Tourism potential nutrients and pesticides, storage of obsolete R

wastewater treatment E Fuelwood and fish E pesticides, and ineffective waste management

Groundwater abstraction and N ter cooperation at the transboundary level. T

E A R Negative impact of deforestation

R

E conveyance to Baku from the E

W

G Groundwater abstraction and N T on hydrological flow through sedimentation Y R

E areal aquifer ECOSYSTEMS A Negative impact of deforestation

R O conveyance to Baku from the F F W

G O onand hydrological exposure to flow effects through of flash sedimentation flooding Y R R areal aquifer ECOSYSTEMS D

O F W N

F O and exposure to effects of flash flooding A A R L D T

W E & N

R A A D L

T O E & O R F D O O ENERGY FOODF & LAND

E ENERGY N Y FOOD & LAND E G R R E E G N Y Lack of access to alternative sources N Y E E F G R O R R for heating/cooking in Georgian rural areas G R FO E High level of wood use for heating and Lack of access to alternative sources Y NN F D IEO aggravates deforestation F OO N RT cooking in rural areas in Georgia, leading to for heating/cooking in Georgian rural areas O D LA OC High level of wood use for heating and R & D UF N F L & OD IO O A OD RN T erosion and sedimentation which may affect aggravates deforestation OD ND FO PA C cooking in rural areas in Georgia, leading to & L U Azerbaijan investing in modernizing agriculture L & OD infrastructure A OD R erosion and sedimentation which may affect ND FO P Azerbaijan investing in modernizing agriculture infrastructure

International coordination and co-oper- There are many benefits of adopting a ation at basin and regional level offers transboundary nexus approach in the opportunities to “manage the nexus” Alazani/Ganykh Basin. beyond what is possible at national level. Better transboundary cooperation on the inte- would benefit from Azerbaijani experience in These include coordinating flood risk manage- sources. A strengthened consultation of mul- grated management of basin resources would promoting the switch from fuelwood to modern ment and water quality protection measures, tiple stakeholders would help ensure finding allow Georgia and Azerbaijan to exploit com- fuels, and Azerbaijan could learn from the Geor- facilitating information-sharing and peer learn- the best options, setting priorities and using plementarities in their resource bases (e.g. gian experience in the economic valuation of ing, coordinating climate change adaptation resources efficiently. International experience Georgian forests, Azerbaijani gas). This would ecosystem services. The potential of the basin’s plans and measures, and developing a strategic through the application of guidelines and good optimize resources development as well as land resource could be better realised with the plan for the development of hydropower po- practices would help to improve sustainability risk management at the basin scale (e.g. coor- optimisation and modernisation of irrigation, tential. Target setting and development of the in the location, design and construction of hy- dinated hydropower development, coordinat- supported by the transfer of related experience. normative frameworks are expected to facilitate dropower plants. ed flood management) to better protect the The nexus assessment identifies a number of investment into different renewable energy resource base for regional economic develop- benefits (Table 1), both on economic activities ment, and to generate new economic opportu- and what goes beyond those, generated by im- nities (e.g. through more intense energy trade). provements in the management of the basin’s There are opportunities for the two countries resources as well as by increased trust between BASIN TRENDS to learn from each other – for example, Georgia the riparian countries. PRECIPITATION NEXUS FUTURE IN THE ALAZANI / GANYKH BASIN TEMPERATURE Benefits of implementing a transboundary nexus approach in the Alazani/Ganykh Basin ECOSYSTEM SERVICES RISE SIGNIFICANT RISE On economic activities Beyond economic activities POPULATION DROP BY 2030 From impro- Economic benefits Social and environmental benefits ved manage- • Increased productivity and profitability of agriculture • Health benefits from reduced indoor air pollution ECONOMY (medium term) ment of basin • Preservation and development of aquaculture • Reductions in human losses caused by floods resources • Avoiding hydropower generation losses due to floods and reservoir • Reductions in unemployment NATIONAL TRENDS Georgia Azerbaijan siltation • Poverty reduction and increased living standards • Cost savings in drinking water treatment • Recreational use by local communities WATER FOR FOOD & LAND • Reduced economic losses from floods • Preservation of forest habitats Irrigation needs • Reduced public spending on emergency situations and repairing • Carbon sequestration damage • Expansion of tourism industry WATER FOR ENERGY Electricity generation needs, cooling From Regional economic cooperation benefits Geo-political benefits increased • Increased trade in energy carriers • Alignment to international and EU regulation ENERGY FOR WATER trust between (such as electricity, natural gas, kerosene) • Reduced possibility of conflicts between Georgia and Treat, move and store water Azerbaijan and Georgia Azerbaijan

ENERGY FOR FOOD & LAND Grow, store, process and move food The assessment of the Alazani/Ganykh River Basin is the main Convention on the Protection and Use of Transboundary objective of the nexus assessments under the Water Conven- Watercourses and International Lakes FOOD & LAND FOR ENERGY tion is to foster transboundary cooperation by identifying Environment Division, Economic Commission for Europe Food-energy competition for water, intersectoral synergies and determining measures that could Palais des Nations biofuel production alleviate tensions related to the multiple needs of riparian CH-1211 Geneva 10, Switzerland countries for shared resources. E-mail: [email protected] IMPACT OF FOOD & LAND ON WATER RESOURCE Water pollution, agricultural use Website: http://www.unece.org/env/water/nexus.html Nexus assessment methodology: http://www.unece.org/index.php?id=41427