Policy Guideline for Eco-efficient Water Infrastructure Development

KIM Tae HyungEconomic Affairs Officer

Environment and Development DivisionUNESCAP

Overviews

1. Water Challenges in Asia and the Pacific

2. Why Green Growth (Eco efficiency)?

3. What is Green Growth (Eco-efficiency)?

4. How to Promote Green Growth and Eco-efficiency?

5. Key Messages

What Water Challenges in Asia and Pacific

50 percentThe number of people who don't have access to the quality of water available to the citizens of Rome 2,000 years ago

Source: Blue Planet Run, Smolan, Erwitt

40 billionThe number of hours spent each year

in Africa due to the need to collect and haul water

Source: Blue Planet Run, Smolan, Erwitt

5.3 billionThe number of people - two-thirds of the world's population - who will suffer from water shortages by 2025.

Source: Blue Planet Run, Smolan, Erwitt

1.1 billionThe number of people worldwide - 1 in every 6 - without access to clean water

Source: Blue Planet Run, Smolan, Erwitt

Water Scarcity

Too little water?Too little water? Too much water?Too much water?

Temperature up Heavy rainfall Extreme weather Sea level up

Too Much Water or Too Little Water

Before Urbanization

After Urbanization

Urbanization – More Flooding

How to Solve Water Challenges?

Causes of Crisis: Unmatched Gap

1. Gap between Present Economic System vs Reality

• Income = Labour (L) + Capital (K)

2. Type of Scarcity changed

3. New Reality: labor/capital are no longer scarce• Financial crisis and Unemployment

4. Now Ecological / Resources Crisis• Ecology (air, water) are no longer free goods

• Current Economy: treat ecology as Free Goods

Sustainable Water Infrastructure Issue

1. Low Investment • Gap between Long-Term Benefits and Short-

Term Burden/Costs

2. Centralized Supply Pattern

Centralized water supply by a few monopolies

Focused on visible infrastructure (Physical)

Grow first and Clean-up later

Sustainable Water Infrastructure Issue

3. Eco-efficient (EE) technology and design

4. Demand side management (DSM)

5. Weak infant water industry and market

6. Weak integrated planning with other infrastructures

Policy Options:

Green Growth (Eco-efficiency)

MDGs and GG (EE)

MDGs and Green Growth (Eco-efficiency)

GG is supporting MDGs and SD, not replacing

GG is the policy option to achieve MDG 1 (poverty reduction) and MDG 7 (environment protection) at the same time

It is owned by countries and modified depending on countries’ conditions

Must work together to make it happen

Concept of Eco-efficiency

Eco-efficiency

To maximize the efficiency of water infrastructure within eco-system

Promote ecological and economical efficiency at the same time

Thinking Graphically... Eco-efficiencyEc

onom

ic G

row

th

Environmental Quality

Social willingness to trade off environmental quality for economic benefit

Possible combinations of economic growth and environmental quality

eco-efficiency curve

Source: Steve Meyrick and modified by KIM TH

How to Promote Green Growth and

Eco-efficiency?

Restructuring of Economy

1. Invisible Infra of economy Price-structure: MCE < ECE Regulation, Value, Life-style, Technology,

Urban Design

2. Visible Infra of economy

Infra-structure: Transport, Building, Land Use Planning,

3. EE/GG: restructuring visible & invisible infra of economy

Policy Suggestions in Water

1. Get the right pricing system

2. Reduce distance: decentralized development

3. Develop new water sources: rainwater and wastewater, etc

4. Educate People: sustainable consumption

5. Industrial policy for infant water industry

6. Integrated planning among infrastructures

(1) Get Right Price: Ecological Price

Policy direction Supporting measuresEcological price

Budget and Tax Reform

• Market price = Ecological price• Research the ecological price suited for countries• Gradual application into national pricing system

• Changing tax base from Income to Pollution, Carbon

• Neutral tax system (Revenue Neutrality)• Differential taxation of different water goods and

services (end-users)

From Income To Pollution

Income Tax

Pollution Tax•

Pollution Tax

Income Tax

Integrating Ecological Price

Ken Livingstone : ex Mayor of London

• 2003. 2. : Congestion Charge

• 80 % Londoners opposed

One year later

2004. 2. Re-elected

(2) Reduce Distance (Decentralized)

Policy direction Supporting measuresReducing distance • Assign authorities to local governments by laws

• Policies for local water development and purchasing• Tax incentives for specific location decisions•Awareness campaigns: cooperation with local media and school

Wastewater treatment

10km

Water supply30km

(3) Develop New Water Sources

Policy direction Supporting measuresNew water sources

Recycling and reuse of Wastewater

• Wastewater and Rainwater as new water source• Develop local technology-based industries • Decentralized small size water supply / treatment facilities

•Get right wastewater price •Develop standard / cost effective household waste treatment device• Enact by-laws that install approved high performance wastewater treatment in new buildings or renovations requiring a permit.• Enact by-laws requiring home water audits and retrofits with every house resale

Water Independency Ratio

External Supply 89%(Multi-regional water supply)

120 million ton/year

Total water usage :1.09millionXLPCD310LX365days=123millionm3/year // Rainwater : 21.07km2X1335mm=161miilion m3/year

Graywater (3%)Local water supply (3%)

Groundwater (4%)

Rainwater160 million ton/year

• Storage and infiltration • Groundwater recharge andUnderground Dam

• Water Independency Ratio50%

New Water Source in City Level

Active Reuse

Change of Mindsets for Rainwater

p

New Design?

Star City Rainwater management system

Location Jayang-dong Gwangjin-gu Seoul

AreaTotal Area : 62,505.2M2

Building Area : 16,867.729M2

UsageApartment, Officetel,

Commercial & Cultural facilities

Construction

duration

October. 2003 ~ March. 2007

ForForFlood Flood

ControlControl ForForWaterWaterSavingSaving

ForForEmergencEmergenc

yy

Everybody is

happy

Spray water for playground

Treatment devicefor first flush

Instruments

Storage tank

Irrigation and gardening water

Toilet flush waterRainfall gauge

Infiltration device

MF system

Treated Water Make Urban Beautiful

Releasing treated water can restore a small dry river and make land value higher

Treated Water for Rice and Others

Treated water is utilized for melting snow and irrigating in the suburban rice fields

Supplying water to water-retentive pavement is essential to cool down the temperature of road through evaporation.

Temperature sensor

Water storage tank(rainwater or groundwater)

Evaporation

Water-retentive layerWater-supply layer

Base (Impervious Pavement)

Surface

(4) Educate People: Consumption PatternPolicy direction Supporting measuresRegulations for reducing water consumptions

Invest in demand –side management (DSM)

Social compact

• Any additional water demand from new development is off-set by reducing water use in existing buildings.• Enact by-laws for dual plumbing in new developments

•DSM requires staff with right skills and expertise based on social sciences to handle water demands•Create permanent DSM staff positions in utility operations, finance and planning departments, and strategic decision making• Managing demand as daily water management

• Educate people in collaboration with Media based o social compacts • Enact by-laws that require high performance water-saving device in new buildings

(5) Promote Infant Water Industry

Policy direction Supporting measures

Establish SOEs

Provision of a ground rule

• Government intervention required• Establish state-owned enterprises • Protect infant water industry for new technology and

capacity build-up• Local government purchasing: ‘Buy local’ campaigns• Short-term subsidies to stimulate the local market

• Government can provide a ground rule to support LC GG innovators; Improving regulations Providing R&D incentives Adopting green procurement practices Promoting CSR

(6) Integrated Planning with Other Infras

Policy direction Supporting measuresIntegrated planning Mandatory regulation and process to promote

integrated planning with other infrastructure in energy, transportation, solid waste, disaster and land infrastructures

39

Location: YokohamaObject River: Onda River（Tributary of Tsurumi River）Structure Type：Concrete DamStorage Capacity：96,000m3

Storage Area：29,318m2

Kirigaoka Reservoir in Japan

Tennis court for normal

Reservoir for flooding

Yokohama Business Park (Hill of Bellini)Location : Yokohama-cityRiver Basin: Katabira RiverStorage Volume : 5,831 m3

Used for landscape pond

41

Stormwater Storage at School YardFor Emergency

Usual Flooding

- Water Amenity Facilities with Rainwater- Infiltrative parking lot

Japan Saitama Worldcup Stadium

- 2,600 ton rainwater from 19 building roofs- Used for reservoir (30cm depth and 3,300ton)- Provide rainwater to 22,000 ㎡ roof garden- Berlin city: 1% of building space allowed

Germany, Potsdamer Platz, Berlin

Case of Storm Water Infiltration

Greening Roof

Management of stormwater in

green area

Management of non-point

pollutions in road

Management of non-point

pollutions in parking lot

Low Impact Development (LID) Wet Weather Flow Management (WWFM) Stormwater Best Management Practices (BMPs) Green Infrastructure (GI) Green Roofs, Rain garden

Reduction/Disconnection of Impervious

Areas

Bioretention swales, Bioretention basins

Dry, Extended-detention ponds

Stormwater Wetlands

Infiltration meaures (Basins, Trenches,

Porous Pavement)

Rainwater tanks

• Rain Garden, EPA, Washington D.C.

• Rainwater Utilization, MIT, Boston

Washington and Boston, Rainwater Management

Remote Controlling System for Decentralization

1. Linking water infrastructure to IT

2. Remote controlling system is key element for success of decentralized approaches

3. Software already developed. It is time to copy and modify with low cost

Internet

Site

KICT

Remote Controlling System for Decentralization

Remote Rainwater and Wastewater Recycling System

Treated wastewater Rain remote monitoring

Butterfly Valve

First flusing treat

Waste tank

MF filter

Wastewater treatment system

Treated rain water

Policy Guide for Eco-efficiency Water Infra

1. Get the right price Ecological price into market priceGreen Budget, Tax and Subsidy Reform

2. Reduce distance Decentralized Production of Water

3. Develop new water Wastewater and Rainwater as new water source

4. Educate People Demand management of water consumption

5. Promote Green Infant Industry

Protect infant water industry (PPP)

6. Integrated with Other Infrastructures

Integrated planning with other infrastructures

Who lead: Role of Government

1. Build the system to fill two gaps

Time gap between short-term investment and long-tern profits

Price gap between market price and ecological price

2. Pricing, tax and subsidy for new innovators in the local business

3. Government intervention for infant water industries

Priority Directions? My picks!

Priority 1: Low hanging fruits Design in reducing distance of water infrastructure Development new water source infrastructures: wastewater Long-term investment programme in technology and design

Priority 2: Harder but worth doing Educate people Integrated planning with other infrastructures

Priority 3: Tough with winners and losers but should do Application of ecological pricing Green Budget and Tax Reform

Key Messages

Story for a Certain Country (1) In 1903, an Australian management consultant visited a

developing country. He described “these people are easy-going race who reckon time is no subject........”

Government officials also agreed “it is impossible to change the habits of national heritage”

American missionary Sidney Gulick described the these people lazy and utterly indifferent to the passage of time. He lived inthis country for 25 years (1888-1913)

Ms. Beatrice Webb, famous leader of British Fabian socialism described these people as objectionable notions of leisure and aquite intolerable personal independence. No desire to teach these people to think (after tour in 1911-1912 )

It was Japan in 1915 (Evolution of the Japanese in 1903)

Story for a Certain Country (2)

Ms. Beatrice Webb also described Korean as 12 millions of dirty, degraded, sullen, lazy and religionless savages who slouch about in dirty white garments of the most inept kind and who live in filthy mudhuts.

Samsung Story: in 1984, announced to be a semiconductor producer

POSCO Story: In late 1960s, WB declined the loan-South Korea’s traditional exports consisted of fish, cheap apparel, wigs and plywood

- It did not possess iron ore and coking coal

Summary Message

1. Green growth (eco-efficiency) is the Policy Option to support SD and MDGs

2. Restructuring Infrastructure of Economy Invisible infrastructure

3. Government must lead to fill two gaps Time gap: short term burdens and long term

benefits Price gap: market price and ecological price Provide incentive LCGG innovators

Coming Big Events

1. The 3rd Regional Workshop on Eco-efficient Water Infrastructure Development in Asia and the Pacific 23-25 November 2010, Bangkok

www.ecowaterinfra.org

KIM Tae HyungEconomic Affairs Officer

Environment and Development Division (EDD)

UNESCAP

Tel: (66) 2-288-1533 / Email: kimt@un.org

www.ecowaterinfra.org

Thank You for Your Attention