Improving Water Quality in China: Where do you start?

Greg BrowderWorld BankWater Week 2007

A Macro-Level Overview

China’s Environmental Setting

• Population Pressure: 1.3 billion people

• Rapid Urbanization: 1990-300m, 2020-900 million

• Aridity: Above Yangzte River-500 m3/per capita

• Heavily Polluted Rivers and Lakes

• Massive Red Tides and Eutrophication in Coastal Waters

Population Pressure

Heavily Polluted Rivers and Lakes

All China I – II

All China III – IV

All China V – V*

0

10

20

30

40

50

60

70

80

90

100

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

All China I – II All China III – IV All China V – V*

Perc

ent

DO < 2 mg/l

DO: 3 - 5 mg/l

Source: SEPA, Water Monitoring Data (1993-2003).

Eutrophication in Coastal Waters

Nutrients are the Main Problem

China’s Water Pollution Control Efforts

Main Focus of Efforts:

1990-2010: Industrial Pollution Control

2000-2020: Municipal Wastewater Management

2010-2030: Non-Point Source Control?

Municipal and Industrial (M&I) Pollution Trends

0

10

20

30

40

50

60

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

WW

Dis

char

ge (B

illio

n m

3/ye

ar)

Volume

0

5

10

15

20

25

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

CO

D (m

illio

n to

nnes

/ yea

r)

Urban Domestic

Industry

Load

Decrease in Industrial: Clean Production, Treatment and Restructuring

Stabilized Urban Domestic: Urbanization and Treatment

Source: OECD, 2005

Booming Municipal Wastewater Treatment

0

10

20

30

40

50

60

70

80

1991 1996 2000 2004 2010(target)

Was

tew

ater

Tre

atm

ent C

apac

ity

(mill

ion

m3/

day)

0%

10%

20%

30%

40%

50%

60%

70%

Was

tew

ater

Tre

atm

ent R

ateWastew ater treatment

capacity (million m3/day)Waterw ater treatment rate (%)

Source: MOC, China Urban Construction Statistics Yearbook, 2004

Questions in Balancing the Brown and Green Agendas

How to Set Appropriate Municipal Discharge Standards?

When Should Non-Point Source Control Be Addressed?

Municipal Wastewater Standards in China

• Environmental Agency Has High Discharge Standards:

• Which Many Cities Struggle to Afford

1602,000<$1500Small and Poor

200 330$1500-$3000Medium

100 21> $3,000Large and Rich

Population (Million)# of CitesPer-Capita (US$)City Type

Note: Small and Poor Include County Capital Towns

30(NH3-N)

2015Total-N (mg/l)

3.01.00.5Total-P (mg/l)

302010SS (mg/l)

302010BOD (mg/l)

Class 2Class 1BClass 1A

Parameter

Diminishing Marginal Returns on Treatment Investments

Total unit cost (US$ m-3)

2.5

2.0

1.5

1.0

0.5

0.0% RemoveBOD 30 50-70 90-95 >95TSS 60 80-90 90-95 >95TN 15 25 40 >80TP 15 75 90 >90

PrimaryTreatment

Enhanced PrimaryTreatment

SecondaryTreatment

TertiaryTreatment

Illustrative U.S/EU Collection and Treatment Costs

Source: UNEP (1997); Note: P-reduction rates assume chemical precipitation of P

Municipal Wastewater Standards in China

Proposed Approaches:

Transitional Standards Based on Economic Development

More and Better Targeted Concessionary Funding

Ensure Wastewater Collection and Operation of WWTP(More Important than Discharge Standard?)

When Should Non-Point Source Control Be Addressed?

Major Sources of Non-Point Sources Not Controlled:

Fertilizer: 2006: China becomes largest user -35% of world total

Pesticides—China is world’s second largest user

Livestock: BOD load is conservatively estimated around 50% of M&I load

Average Nitrate Concentrations at Mouth of Yangzte River

Consequences: Coastal Eutrophication and Red Tides

Consequences: Lake Eutrophication

Why Non-Point Source Control Is Challenging

Fertilizers Boost Agricultural Productivity and Farmer Incomes

Government Can’t Control Farmers: Education and Awareness

Large number of farmers make command and control regulation difficult

Institutional Coordination Problems

Cities Still Struggling with Wastewater—No Stormwater Management

Complex Science Has to Back Policy Initiatives

World Bank Support to China to Improve Water Quality Management

25 Bank Urban Wastewater Projects: $4.0 billion investment

2006 GEF-World Bank East Asia Partnership: US$25 million

Projects Focusing on Lake Restoration: Lake Dianchi and Lake Tai

Watershed Management Programs: Loess Plateu and Pearl River

New EAP Sustainable Development Department Provides an OpportunityTo Improve Total Water Quality Management Efforts

Take Home Messages:Focus on M&I Pollution Control—But Don’t Overdo It!

Non-Point Source Control Takes Decades—Start Today!