The Asian Development Bank (ADB) has recently released a report examining the water–energy nexus in Mongolia and the stress factors of urbanisation and mining. Water systems need energy for pumping, water treatment, waste water treatment, transport and distribution, end use, and water system development. Energy production requires water for primary extraction and mining; fuel production (e.g., hydrogen, ethanol, and biofuels); thermal electric cooling; hydropower; and emission control. Mongolia’s mining-based economic development and the sustainability of its urban economies depend on both water and energy. The examination of the water-energy nexus in two river basins shows that water availability is the binding constraint as energy facilities, mining operations, agriculture, and urban water users compete for scarce water resources.
The study suggests some general guidance for the government to consider in decisions that relate to water, energy, and mining, which are inextricably linked:
• Integrate water resource considerations
into decisions on energy and mining
development;
• Support green procurement for water
and energy technologies;
• Reduce the water intensity of energy
production;
• Get the economic incentives right; and
• Strengthen water management
institutions.