TECHNICAL REPORT - Towards Operationalising the Water-Energy-Food Nexus - February 2023 watercommission.org

Despite a water-food-energy crisis in 2007–08 that had severe and negative global impacts, another nexus crisis emerged in 2021–22 which plunged tens of millions into severe food insecurity and compromised the nutrition of hundreds of millions of people. [...] Nexus concepts need to be operationalised to respond to water and energy risks and the impacts on food security. [...] The unprecedented fiscal and monetary measures that governments used to respond to the COVID-19 pandemic, along with associated supply chain disruptions and the food, fuel and fertiliser impacts of the war in Ukraine, resulted in the cereal price index again rising sharply in 2021 and 2022, reaching its levels of 2008 and 2011. [...] But in contrast to 2007–08, most low- and middle-income countries (LMICs) in 2023 are in an especially weak fiscal position to deal with food, fuel and fertiliser inflation in the wake of the COVID-19 pandemic. [...] Indeed, it is possible the strong agricultural supply responses observed in LMICs in the wake of the 2007–08 crisis may not be replicated because of the more limited fiscal capacity of LMIC governments to facilitate a strong supply response, and due to exceptionally tight fertiliser supplies (Headey and Hirvonen, 2022).