KEY TRADE-OFFS: The Water Energy Food us in Latin America and the Caribbean

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2. KEY TRADE-OFFS:

Water and Energy • Hydropower is the source of around 65 of electricity in LAC. Many countries have plans to exploit their remaining hydropower potential. However, hydropower is vulnerable to climate change and countries will need to diversify their energy matrix to protect energy security. Hydropower infrastructure development can also lead to conlict over access to water and other social and environmental impacts. • Water and energy systems are tightly connected, for example in agricultural irrigation, domestic and industrial supply, water treatment, energy generation through hydropower, and cooling in thermal power stations. Improving the eficiency of coupled water-energy systems through better management, investing in infrastructure, and reforming subsidies would beneit water, energy and food security. Energy and Food • Increased biofuel production could compete with food crops for water and land. Investing in agricultural waste as a source of biofuels, agro-ecological land-use zoning, and prioritising biofuels that thrive on marginal agricultural lands could help to mitigate this potential trade-off. Food and Water • Agriculture accounts for over 70 of water use in the region. Primarily rain-fed, agriculture relies on irrigation in semi-arid zones. Agricultural exports support global food security and Latin America is expected to play a key role in meeting growing international demand for food. However, agriculture is the largest driver of deforestation in LAC, threatening the region’s water security. • In order to adapt to climate change and growing demand for water from other users, the agricultural sector is under pressure to produce more whilst reducing its water, carbon and deforestation footprint. A Framework for Action Our analysis of how to minimise the impacts of these trade-offs and build resilience is based upon a simple framework comprised of the 4 interlinked elements needed to enable a nexus approach: infrastructure, information, institutions and governance, and investment. More detail can be found in section 6, but the key trade-offs, strategic priorities, and entry points for action that emerge from it are summarised below. INVE STMENT INF RA ST RU C TU R E IN FO R M AT IO N IN ST ITU TIONS GOVER NA NC E ECOSYSTEMS E N E R G Y F O O D WATER 3

1. Coherent landscape planning