restoring waters in the baltic sea region · 3. multiple proven measures can be implemented to...

Restoring Waters in the Baltic Sea Region

A Strategy for Municipalities and Local Governments to Capture Economic and Environmental Benefits

5.6.2015

150605_RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 1

Background: BCG actively involved in discussion on the Baltic Sea and state of the oceans

2013: Turning Adversity

into Opportunity – A

Business Plan for the

Baltic Sea

2015: Restoring Waters in

the Baltic Sea Region – A

strategy for Municipalities

& Local Governments

2015: Reviving the Oceans

Economy - The Case for

Action

Focus of today


Introduction of today's focus report

Commissioned by Zennström Philanthropies to better

understand local benefits from restoring Baltic Sea waters

Aim to encourage increased action on local level and inspire

decision makers on what measures to implement

Builds on municipality survey findings (~250 respondents),

~60 topic experts interviews & key stakeholder engagement


Conclusions

1. Local actions crucial to restoring the Baltic Sea, but 2/3

either unaware of problem or lack resources to effectively

address it

2. The benefits of water restoration are both environmental and economic - €270

million in gross output can be captured between 2015 and 2030 for an average

municipality

3. Multiple proven measures can be implemented to restoring the waters, and

40 percent costs can be saved if applying a structured approach when

prioritizing measures

4. Best practice examples from leading municipalities show four actions crucial

to becoming an attractive community


Country Municipalities in

catchment area

380

319

286

215

119

91

60

41

16

Total 1,527

1,500 municipalities crucial to address eutrophication and restore the Baltic Sea waters

Baltic Sea severely affected by

eutrophication

http://upload.wikimedia.org/wikipedia/commons/8/8f/Flag_of_Estonia.svg

http://upload.wikimedia.org/wikipedia/commons/8/84/Flag_of_Latvia.svg

http://upload.wikimedia.org/wikipedia/commons/1/11/Flag_of_Lithuania.svg

http://upload.wikimedia.org/wikipedia/commons/1/12/Flag_of_Poland.svg

http://upload.wikimedia.org/wikipedia/commons/f/f3/Flag_of_Russia.svg

http://upload.wikimedia.org/wikipedia/commons/4/4c/Flag_of_Sweden.svg

http://upload.wikimedia.org/wikipedia/commons/b/bc/Flag_of_Finland.svg

http://upload.wikimedia.org/wikipedia/commons/b/ba/Flag_of_Germany.svg


2/3 of municipalities unaware of Baltic Sea's state or lack sufficient resources to address it

Time

Contribution to

nutrient load reduction

~25%

~45%

~30%

High Leaders

Executors

Unarmed

Unaware

<1%

Low


Conclusions

1. Local actions are crucial to restoring the Baltic Sea, but 2/3 are either

unaware of the problem or lack resources to effectively address it

2. The benefits of water restoration are both environmental

and economic - €270 million in gross output can be captured

between 2015 and 2030 for an average municipality







€270 million economic impact within an average municipality comparing two scenarios

400

300

200

100

0

Total

impact

Extra

beneifts

Supporting

industry

170

Real

Estate

10

Tourism

& Rec.

fishing

70

Water

technology

20

270+

# full-

time

jobs

2,800 200 700 1,900

Total economic impact for an average

municipality (€ million) 2015-2030

Impact at 2030 in

Baltic Sea region

900 000 jobs

Clear waters

state

Shipwrecked

state


Additional potential for municipalities if stimulating innovation in region

Municipalities can drive the

innovation agenda

Stimulate innovation

• Create company hub and R&D

centers

Use Baltic Sea as test bed

• Opportunity to test

innovations

Economic trading potential

• Innovations favors export

opportunities

International inspiration –

Singapore example

Tripled water sector

companies to ~150

Surpassed target of 11,000 jobs

in water sector by '15

Grants from government of

€190 million to >100 R&D

projects

Ninefold increase in R&D-

centers from 3 to 26


Conclusions





municipality

3. Multiple proven measures can be implemented to restore

waters, and up to 40 percent costs can be saved if applying

a structured and prioritized approach




Prioritize measures within agriculture, wastewater, stormwater, and restoration

Agriculture Wastewater Stormwater

Restoration

~90% of discharges


Key recommendations for each action area and case examples from the region

Agriculture

Wastewater

Key

recommendation Municipality examples

• Cooperation with

farmers to reach

win-win solutions

• Complement

targeted

investments with

policies

• Riga upgraded their wastewater plant

which enabled nutrient reductions

corresponding to 40% and 70% of

Latvia's phosphorus and nitrogen

reduction target

• Södertälje introduces policy to

increase recycling of nutrients from

scattered settlements

• By offering free advisory to farmers on

best-practice farming to reduce tonnes

of phosphorus and nitrogen

• By using a special type of reactor, a

farmer reduces cost for fertilizers by

recycling nutrients from wastewater


Key recommendations for each action area and case examples from the region

Stormwater

Restoration

Key

recommendation Municipality examples

• Nutrient reduction

with additional

benefits

• Remediating

environmental

conditions &

damaged areas

• Värmdö restored a wetland with

estimated value of ~€2 million

• Improved biodiversity and recreational

value

• Submariner lists innovative uses of

Baltic Marine resources

• Berlin use a Biotope Area Factor

policy, making all new buildings

include a special share of green areas

• Helsinki has introduced a policy for

construction companies, giving them

the responsibility for cleaning run-off

from explosions rich of nitrogen


1,200

800

1,000

600

400

200

0

100% 80% 60% 40% 20% 0%

Total cost per kg P reduced (€/kg P)

% of local nutrient reduction target (kg P)

40% costs saved by using a structured approach for prioritization

Agricultural

municipality

Mid-sized

city

Archipelago

municipality

~10%

~40%

~20%

Agricultural municipalities

can save most costs


Conclusions





municipality




4. Best practice examples from leading municipalities show

four actions crucial to becoming an attractive community


Four actions crucial for restoring the waters and becoming an attractive community

Define ambition for nutrient reduction and develop the

municipality strategy for how to reach the goals

Set

strategic

direction

Raise public awareness and engage with local initiatives

and organizations

Engage

local stake-

holders

Cooperate with other municipalities and organizations Cooperate

across

borders

Secure sufficient resources, competence and long-term

funding

Resources

and

funding


Next step: Implementation support through the City Accelerator program

More Information

Barbara Jackson

Programme Director

Race For The Baltic

[email protected]

+46 738503358

The programme will support cities to • Identify high-priority and high-risk areas with top global experts

• Navigate through the many cost-effective measures

• Set nutrient reduction targets for your city

• Create a local ‘Baltic Sea Action Plan’ - priortise and implement

• Build an organisation that fosters innovation & solutions, especially around nutrient

recycling

• Develop alliances with local stakeholders

• Package and market your successes


Thank you

bcg.com | bcgperspectives.com


Key questions for sustainable impact

1 What is our municipality

starting point, and what is our

goal and strategy going forward?

2

When we commit to addressing

eutrophication in our

municipality, who will be the key

stakeholder we should engage?

3

How do we ensure that we have

sufficient funding and resources

to execute a more ambitious

action plan?

4 How can the Baltic Sea Action Plan,

nutrient reduction targets, and

implementation programs be

translated to a local level?

5

How can national cross-sector

collaborations within areas such as

agriculture, facilitate cooperation

among local stakeholders?

6

How can national bodies, together

with local stakeholders, develop the

region to become a hub for water

technology innovations?

For municipalities

and local organizations

For international and

national stakeholders

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