climate change – water sector
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Climate change – water sector. High-Level Conference on Water, Climate and Health First International Forum on Development, Environment and Health Arezzo, Italy, November 20-23, 2012. Roberto Zocchi – Chair EU3. EUREAU – WHO WE ARE. - PowerPoint PPT PresentationTRANSCRIPT
CLIMATE CHANGE – WATER SECTOR
HIGH-LEVEL CONFERENCE ON WATER, CLIMATE AND HEALTH
First International Forum on Development, Environment and Health
Arezzo, Italy, November 20-23, 2012
Roberto Zocchi – Chair EU3
EUREAU is the European Federation of National Associations of Water and Wastewater Services. EUREAU gather 10.000 water & waste water utilities & operators across Europe that provide sustainable water services to around 405 million European citizens.
EUREAU – WHO WE ARE
VISIONEUREAU aims for a provision of reliable and high quality water supply and waste water services which:• Protect public health;• Fully respect the natural
environment;• Support economic
development;• Socially acceptable
Climate change stress the water sector operational activity but
mostly……the infrastructural needFINANCING ISSUE!
Climate change
Application of the 3Ts Framework:
Action plan and way forward, beyond Marseille
Roberto ZocchiEU3 Chair13 March 2012, Marseille
Developed by OECD – applied by
EUREAU, The 3Ts (Tariffs Taxes Transfers) framework
represents a powerful tool in unlocking our
understanding of the sources of the funds
which underpin a sustainable future
3Ts Framework
WATER AGENCY
WATER SUPPLY OPERATOR
LOCAL GOVERNMENT
SEWER OPERATORS
SANITATION OPERATOR
BULK WATER OPERATOR
3Ts concept into practice in order to promote:− A source contribution increasing transparency of the
financing of water services and to facilitate the reporting obligations on the costs recovery principle (article 9 of European Water Framework Directive)
− A useful diagnosis and decision-making tool
− A means of informing on water services related investment targets
− A tool to raise general awareness of sectorial financing issues
TAXES/Transf
(Cap.Ex.) Tariff(Op.Ex.)
TAXES/Transf.
Tariff(Op.Ex.Cap.Ex.)
Time…..
3Ts Framework
An appropriate mix of Tariffs, Taxes and Transfers:
to finance capital and recurrent costs in the long run, and
leverage other forms of finance (equity, loans, bonds)
Tariff policies that :
are affordable to all users, including the poorest
ensure the financial sustainability of service providers
provide appropriate incentives (consumption, efficiency)
Subsidy policies that :
are predictable and reliable to facilitate investment planning
meet social and environmental objectives
are affordable to national/local governments(message: if the local government or the public authorities want to make water services affordable for the poorest, the funds could be targeted to this specific population through social mechanisms, with financial resources not coming from water)
Relying on public funds or donors aids on a permanent basis is not consistent with the
principle of sustainability of water services, and price policies and tariff
structures have to incorporate a return on capital, consistent with the principle of
“full cost recovery”, to cover the financing needs of the sector.
Tariff structures should also ideally reflect the long-term fixed nature of investment.Rising efficiency
• Effective regulation• Economic leverage
Sustainable Future - Recommendations (1)
TAXES/Transf
(Cap.Ex.)Tariff
(Op.Ex.)TAXES/Transf.
Tariff(Op.Ex.Cap.Ex.)
Time…..
Sustainable Future - Recommendations (2)maintenance holiday is an expensive short term
thinking!
ARE WE PROPERLY MANTAINIG WATER SERVICES ASSETS FOR THE
FUTURE GENERATIONS?Water Inflow
Distribution Network
Mains
Aqueducts
Storage Tanks Capacity
Piezometers
……
479,8 Mm3/yr
5.482 km
878 km
208 km
480.388 m3
n. 6
…
ASSET RENEWAL (extimated value)
15 – 20 Billion Euros
PLANNED GLOBAL INVESTMENT (5 Yrs): 100/150 M€/YearRising Standards (ww new
infrastructures):50/100 M€/Year
Maintenance (Ord/Extra; w/ww):45/50 M€/Year
(0,25%!.....400 Years!)NOT ENOUGTH!! WE HAVE TO DO MORE!!WE ARE LEAVING PROBLEMS TO NEXT
GENERATIONS!