Water management, and energy production and usage, are deeply interrelated, and the impact that climate change will have on both raises a number of complex issues. Water is the primary medium through which climate change impacts will be felt by human populations and the environment, whilst energy production is one of the most significant drivers of climate change due to the emission of Greenhouse Gases (GHGs) into the atmosphere through the burning of fossil fuels.  It is of vital importance that the water and energy nexus is included within any intergovernmental agreement which tackles climate change, as any carbon reduction agreement will mean a move towards greater efficiency standards and renewable technologies, which in turn will have impacts on the use of water.

Water and Energy share a number of the same drivers on usage: demographic, economic, social and technological. Water demand is expected to increase into the next century: demand for energy is expected to increase by over 40% by 2030[1] while demand for available freshwater resources is expected to rise from 54% of available resources in 2001 to 70% in 2025, and 90% in 2025 if per capita consumption is at developed country levels[2] . This increasing demand constitutes competing pressures from a number of sectors - including agriculture, energy and domestic use. Climate change, which is predicted to alter precipitation patterns, accelerate glacial melt and change moisture availability, will exacerbate pressure on water resources further.  Both demand for energy and demand for water will also be influenced by climate change pressures.  Within a resource constrained environment, competition and potentially conflict will arise between these sectors, and mechanisms need to be in place to address these competing demands.

The dialogue on water and energy will seek to address some of these issues and, through discussion among a number of actors, develop guidelines on how to consider the water impacts of energy production, and the energy impacts of water supply systems.