Water, energy, and food security are of critical concern as rising population growth and rapid urbanization place greater pressure on our natural resources. The trade of ‘virtual water’ through agricultural products and its appropriation through foreign direct investment (FDI) in food production have emerged as potential strategies for water-scarce countries seeking food security. In Saudi Arabia, where domestic agricultural enterprise remains a state priority despite extreme water scarcity, a shift to overseas food production to meet domestic demand could have significant implications for water and energy use as well as local labor markets. This study evaluates the growing internationalization of food production in water-scarce countries using the case of Saudi Arabia as a microcosm to illustrate the tradeoffs in resource consumption associated with crop selection and farming practices. This analysis indicates that the implications of different types of large-scale agribusiness must be more explicitly accounted for in government policy given the non-renewable nature of groundwater and energy. This work also quantifies the increase in the import of virtual water through conventional trade, which has significant potential to minimize groundwater pumping for food production in arid environments. A brief, complementary assessment of the growing role of FDI shows that further analysis is needed to ascertain the long-term resource impacts of direct investment in overseas enterprise and to minimize potentially negative impacts on water access and rural livelihoods in target nations. Active engagement of local communities and/or more holistic investment in infrastructure or improving agricultural productivity could also help avoid the potential for conflict and contribute towards long-term sustainability.

Given their substantial societal benefits, such as supporting economic activities and providing better livelihoods in rural areas, ecosystem services should gain higher importance in water-food-energy nexus debates. Yet, not all values from ecosystems are quantifiable, data is often not adequate and methods of measuring these values are not sound. This situation challenges researchers and water managers to improve research tools and give adequate attention to ecosystem services by implementing interdisciplinary approaches and integrated management of ecosystems and their services.

Alan Nicol, Simon J. Langan, Michael Victor, Julian Gonsalves, 'Building resilience: Climate change, water, and food security', International Water Management Institute (IWMI); CGIAR Research Program on Water, Land and Ecosystems (WLE); Global Water Initiative East Africa (GWI EA), 2015

Declan Conway et al., 'Climate and southern Africa's water?energy?food nexus', Nature Climate Change, vol. 5(9), pp.837-846, Springer Science and Business Media LLC, 2015

To many analysts, global water governance is about getting the institutions right: more accountable water users and more public participation in decisions. But are we barking up the right tree? In this analysis, we argue that when analysing global water governance, one needs to look at the global players that really matter – an exclusive group of global food traders. These traders must be held accountable for their water footprint.

In southern Africa, the connections between climate and the water–energy–food nexus are strong. Physical and socioeconomic exposure to climate is high in many areas and in crucial economic sectors. Spatial interdependence is also high, driven, for example, by the regional extent of many climate anomalies and river basins and aquifers that span national boundaries. There is now strong evidence of the effects of individual climate anomalies, but associations between national rainfall and gross domestic product and crop production remain relatively weak. The majority of climate models project decreases in annual precipitation for southern Africa, typically by as much as 20% by the 2080s. Impact models suggest these changes would propagate into reduced water availability and crop yields. Recognition of spatial and sectoral interdependencies should inform policies, institutions and investments for enhancing water, energy and food security. Three key political and economic instruments could be strengthened for this purpose: the Southern African Development Community, the Southern African Power Pool and trade of agricultural products amounting to significant transfers of embedded water.

Researchers and practitioners have developed many tools to study the water-energy-food nexus at a variety of scales and perspectives in order to aid decision-making. However, there is a recognised lack of tools that consider these interdependent and complex interactions in an integrated fashion. Whether to connect and federate wellestablished modelling systems and approaches, which may be challenging, or to design truly integrated tools for holistic consideration of the nexus issues, is also debated. This paper discusses four distinctly different approaches which appear to have wide-scale applicability, although demonstration of these approaches in multiple cases (besides the Polestar model which is already regional/ global) is yet to be applied. Sustainable implementation of any tools will require greater accessibility such that they may be more widely deployed by practitioners. Harmonisation of results and insights between different scales, so that decision-makers may consider global-local impacts, also remains a challenge.