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Page 1 of 34 Tool 1: Economic instruments and policies in water management Case and region Issue Type of tool Description Economic impacts Benefits for the environment Social/poverty alleviation impacts Governance issues Scaling up and relevance for developing/ transition countries Constraints a) Case studies plenary session OECD (1) Subsidies for water infrastructure as an engine of growth in South Africa Africa Industry Economic instruments and policies in water management The country has limited water resources, extremely unevenly distributed and much far from the location of economic activities and populations Infrastructure development has enabled the storage and transportation of this water to support social and economic development Water infrastructure has supported the gold and diamond mining industries which have been the main driving force of South Africa’s economic growth The use of subsidies for infrastructure as a tool must be assessed to ensure benefits are greater than costs Of particular concern are environmental costs and impacts on indigenous communities dependent on present river flows and hydrographic conditions (2) Trading and step by step legal reform on water use rights in the Murray-Darling Basin Australia Watershed/ agriculture/ cities Economic instruments and policies in water management Water trading has increased with increasing water scarcity problems Two elements of success: decoupling water rights from land rights and making water rights proportional shares of available resources rather than fixed volumes Water trade has enabled irrigators to respond flexibly to drought and other external factors, reducing the economic impact of low water allocations on business Enables water to be traded from low to high value uses Through the “Restoring the Balance” program, the Federal Government has allocated $3.1b for purchasing water entitlements and $5.8b for recovering water through infrastructure investments, to restore water to the environment Water trade has enabled governments and utilities to purchase water to ensure water security for urban citizens, including during critical drought periods A new Water Act in 2007 established an independent Murray- Darling Basin Authority with the functions and powers to manage the entire basin’s water resources The Act will ensure water security for urban communities and environmentally sustainable level of water for rivers in the basin, taking into account likely climate change scenarios Relevance for managing water in a context of climate change and variability, managing water scarcity High administrative requirements There is no single register with timely trade data Trade can affect the spatial characteristics of water use, storage and delivery, which may result in channel capacity, water and land quality issues Current limit on the level of permanent trade permitted out of area (3) Water pricing and command and control for water demand management in cities and agriculture in Israel MENA Cities / Agriculture Economic instruments and policies in water management Metering everywhere and everyone pays Mixed model of pricing/penalties and command and control Decisions on pricing sometimes subject to other social and political goals (4) Trading vs. infrastructure in northern Chile LAC Industry Economic instruments and policies in water management Water rights are entirely private, separate from land property rights, and tradable Water scarcity in the north could be a possible impediment for growth in copper production Two possible policy options for addressing water security concerns in the arid north: (i) market – improve governance to correct failures in water markets; (ii) infrastructure – bring Aim of market trading policy is to allocate water to highest economic use, but high transaction costs could impede growth Infrastructure option would be on the condition that the cost (to tax payers) does not exceed the benefit (to growth) Markets have not always worked in practice High costs of transactions such as maintaining the national register of water right holders, granting new rights, changing capture areas, etc. Limited enforcement of water markets sometimes resulting in

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Page 1: Tool 1: Economic instruments and policies in water management · Economic instruments and policies in water management . The Caribbean Catastrophe Risk Insurance Facility (CCRIF)

Page 1 of 34

Tool 1: Economic instruments and policies in water management Case and region

Issue Type of tool Description Economic impacts Benefits for the environment

Social/poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

a) Case studies plenary session OECD (1) Subsidies for water infrastructure as an engine of growth in South Africa Africa

Industry Economic instruments and policies in water management

• The country has limited water resources, extremely unevenly distributed and much far from the location of economic activities and populations

• Infrastructure development has enabled the storage and transportation of this water to support social and economic development

Water infrastructure has supported the gold and diamond mining industries which have been the main driving force of South Africa’s economic growth

• The use of subsidies for infrastructure as a tool must be assessed to ensure benefits are greater than costs

• Of particular concern are environmental costs and impacts on indigenous communities dependent on present river flows and hydrographic conditions

(2) Trading and step by step legal reform on water use rights in the Murray-Darling Basin Australia

Watershed/agriculture/cities

Economic instruments and policies in water management

• Water trading has increased with increasing water scarcity problems

• Two elements of success: decoupling water rights from land rights and making water rights proportional shares of available resources rather than fixed volumes

• Water trade has enabled irrigators to respond flexibly to drought and other external factors, reducing the economic impact of low water allocations on business

• Enables water to be traded from low to high value uses

Through the “Restoring the Balance” program, the Federal Government has allocated $3.1b for purchasing water entitlements and $5.8b for recovering water through infrastructure investments, to restore water to the environment

Water trade has enabled governments and utilities to purchase water to ensure water security for urban citizens, including during critical drought periods

• A new Water Act in 2007 established an independent Murray-Darling Basin Authority with the functions and powers to manage the entire basin’s water resources

• The Act will ensure water security for urban communities and environmentally sustainable level of water for rivers in the basin, taking into account likely climate change scenarios

Relevance for managing water in a context of climate change and variability, managing water scarcity

• High administrative requirements

• There is no single register with timely trade data

• Trade can affect the spatial characteristics of water use, storage and delivery, which may result in channel capacity, water and land quality issues

• Current limit on the level of permanent trade permitted out of area

(3) Water pricing and command and control for water demand management in cities and agriculture in Israel MENA

Cities / Agriculture

Economic instruments and policies in water management

• Metering everywhere and everyone pays

• Mixed model of pricing/penalties and command and control

Decisions on pricing sometimes subject to other social and political goals

(4) Trading vs. infrastructure in northern Chile LAC

Industry Economic instruments and policies in water management

• Water rights are entirely private, separate from land property rights, and tradable

• Water scarcity in the north could be a possible impediment for growth in copper production

• Two possible policy options for addressing water security concerns in the arid north: (i) market – improve governance to correct failures in water markets; (ii) infrastructure – bring

• Aim of market trading policy is to allocate water to highest economic use, but high transaction costs could impede growth

• Infrastructure option would be on the condition that the cost (to tax payers) does not exceed the benefit (to growth)

• Markets have not always worked in practice

• High costs of transactions such as maintaining the national register of water right holders, granting new rights, changing capture areas, etc.

• Limited enforcement of water markets sometimes resulting in

Page 2: Tool 1: Economic instruments and policies in water management · Economic instruments and policies in water management . The Caribbean Catastrophe Risk Insurance Facility (CCRIF)

Page 2 of 34

Tool 1: Economic instruments and policies in water management Case and region

Issue Type of tool Description Economic impacts Benefits for the environment

Social/poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

water from south to north through 1000 km pipe

water conflicts going to higher courts

b) Additional case studies market place and compendium (5) Dutch agriculture and environmental sustainability Europe

Agriculture Economic instruments and policies in water management

• Combination of public policies and market incentives to encourage environmentally sound agriculture

• Long history of addressing environmental impacts of agricultural intensification (e.g. pollution, ammonia emissions, pesticide use, biodiversity issues) through policies and system-wide changes

• Preventative rather than ‘end of pipe’ approach to sustainable production

• Market initiatives respond to consumer preferences to environmentally friendly products, e.g. the Horticulture Environmental Programme requires producers record their use of crop protection products, fertilizers and energy; retailers demand use of environmentally-friendly methods in primary production

The Ministry of Agriculture focuses the sector on increasing profits by marketing new products and solving problems (e.g. environment, animal welfare) better and earlier than competitors

Successful implementation of polices to restrict pesticide use and encourage more environmentally sustainable chemicals, e.g. the Multi Year Crop Protection Plan (1991-2000) significantly pesticide use

A leading Government and advanced environmental regulations (often ahead of EU policies)

Favorable soil conditions and geographical proximity to several EU countries has given the Netherlands considerable comparative advantages in the EU system of free internal trade

(6) Spreading risk of extremes through insurance Various regions

- Economic instruments and policies in water management

• The Caribbean Catastrophe Risk Insurance Facility (CCRIF) is based on geographic risk spreading – countries pool their risks into one better diversified portfolio

• Index insurance is linked to an index such as rainfall, temperature, humidity, or crop yields, rather than actual loss; used to remove the barrier of climate risk and enable access to credit for farmers and private sector

• In Viet Nam the option of ‘business interruption insurance’ is being considered; the Viet Nam Bank for Agriculture and Rural Development would lend money to rice farmers and purchase insurance to cover itself against potential losses from flooding

• The cost of coverage for the CCRIF pooled portfolio is less than the sum of premiums that the countries would pay individually for the same coverage; premiums are reduced by almost half

Index insurance has enabled poverty reduction through climate risk management in places such as India, Mongolia, China, Ethiopia, Nicaragua and Thailand

(7) Indo-German

Watershed Economic instruments

• In the 1980’s, the Indian • Increased availability of agricultural work.

• Improvements in water table level.

• Improved access to communication.

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Page 3 of 34

Tool 1: Economic instruments and policies in water management Case and region

Issue Type of tool Description Economic impacts Benefits for the environment

Social/poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

Watershed Development Program in India Asia

and policies in water management

government shifted its approach to watershed management in drought-afflicted rural areas to focus more combining natural resource management with poverty alleviation.

• In 1992, the Indo-German Watershed Development Program was launched. The program funds village-based, participatory watershed development projects to promote soil and water conservation.

• To qualify, villages must agree to temporary bans on tree-cutting and grazing on land designated for regeneration. They must also contribute free labor—a common rural practice known as shramdan—to cover at least 15-20% of project costs.

• 245,000 people trained in watershed management. • Enhanced stabilization of wage levels

• Reduced vulnerability to erosion and drought. • Improved supplies of livestock fodder and volume of land under irrigation

• Improved access to skills training and education for villagers.

(8) Netherlands tax on nutrients Europe Source: AstanaECE

Agriculture Economic instruments and policies in water management

• The centrepiece of the current Dutch nutrient pollution policy is a farm-level nutrient accounting system enforced by a tax on annual net balance of nutrients in excess of a levy-free minimum.

• This is accompanied by a cap on manure application per hectare coupled with a system of manure trading started in 2002.

• The principle behind the Dutch Mineral Accounting System (MINAS) is that farmers record the amount of nitrogen and phosphorus that comes onto the farm, e.g. through feed, livestock, fodder, manure and chemical fertilizer, and the amount that leaves it in such forms as livestock, forage, manure, grain, milk and eggs.

• The MINAS programme sets a loss standard that represents uncontrollable nutrient loss. • The farmer is charged a levy on nitrogen and phosphorus surplus in excess of this loss standard. • The farmer must account for the nitrogen and phosphorus content of the inputs and outputs. • The MINAS phosphorus tax currently is set at €9 per kilogram of excess phosphate. Excess nitrogen is taxed at a rate of €2.3 per kilogram.

Decrease in nitrogen and phosphorus

• The taxes are viewed as substantial enough to motivate behavioural changes.

Nutrient management policy partly driven by external forces, including standards set by the EU

Page 4: Tool 1: Economic instruments and policies in water management · Economic instruments and policies in water management . The Caribbean Catastrophe Risk Insurance Facility (CCRIF)

Page 4 of 34

Tool 2: Green Jobs a) Case studies plenary session ILO

(1) Private water utilities in the Philippines South-east Asia

- Green jobs Employee associations engage in dialogue with the management of water utilities to resolve conflict, without seeking mediation from government

In general, this has resulted in a good relationship between workers and management, and increased productivity

In general, this has resulted in a good relationship between workers and management, and increased productivity

(2) Un Joint Water and Sanitation Programme for the MDGs in Panama LAC

- Green jobs • Programme involves indigenous rural communities in water management, empowered to be partners rather than beneficiaries

• Community participation in design and construction

• Reactivated Management Boards for Rural Water

• Sanitation and hygiene education • Specialists in indigenous capacity building have

built a network of facilitators to promote entrepreneurship

• Community required to pay for water services, to ensure sustainability and maintenance of the system

• Promotion of entrepreneurship generates employment and support local development

b) Additional case studies market place and compendium (3) Green growth policies in the food and agriculture sector, Korea Asia

Agriculture Green jobs • Korea has been a pioneer in implementing green growth policies and has established a regular policy review process through Five Year Plans on Environment-Friendly Agricultural Industry

• Initiatives include: reduction in use of chemical fertilizers, energy savings, promotion of organic agriculture, expansion of financial investment in agricultural green technology

• Since 2010, the Government has been managing 27 regional environmentally-friendly agricultural enterprises of 1000 ha in rural areas

Many jobs to be created (about 5% of total employment in agriculture and food) through significant investments (US$1,04 billion) promoting green growth in agriculture and fisheries

• Reduction in fertilizer use of 8.8% in 2009-2010 through better use of bulk blending fertilizers matched to soil characteristics

• Significant energy savings (and GHG emissions reductions) planned by increasing geothermal heating in greenhouses

A division dedicated to environmentally friendly agriculture was created in the Ministry of Agriculture and Forestry in 1994

(4) City-wide sustainability plan: PlaNYC in United States of America North America

Cities Green jobs • On Earth Day, April 22, 2007, New York City released PlaNYC, its far-reaching sustainability plan including 127 policy initiatives to achieve ten overarching goals to improve the infrastructure, environment, and quality of life in the city.

• The plan aims to double the number of green jobs in 10 years, improve access to education, information, and coordination needed by workers and businesses to facilitate growth in the green economy, promote skill development to ensure New Yorkers meet requirements for green jobs, and increase demand for green products and services.

• Various portions of the plan involve cleaning up brownfields (heavily polluted former industrial sites), encouraging public transportation, ferries and bicycling; creating more parks and playgrounds; planting one million trees within the five boroughs; reducing emissions in public buildings; and retrofitting or replacing diesel trucks.

• Additionally, the plan also calls for enhancement of public transportation and water infrastructure security. Since the release of the plan, the City has made great strides towards implementing the plan – passing groundbreaking green buildings legislation,

Education and skills training for green jobs. Increased market opportunities for green industries.

Project improvements in outdoor and indoor air quality and associated human health benefits. Expected reductions in greenhouse gas emissions from reduced vehicle traffic, support for biking and walking paths, improved buildings emissions standards, and creation of more green space.

Adjustments to city planning and zoning codes. Establishment of congestion pricing Establishment of efficiency standards for buildings

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creating miles of bike lanes, opening acres of open space, cleaning the air, and reducing greenhouse gas emissions.

(5) Working for Water program (WfW) in South Africa Africa

Industry Green jobs • WfW is an invasive species management program that was launched in 1995 and is administered through the Department of Water Affairs and Forestry of the South African government.

• WfW employs members of local communities to clear thirsty alien tree and plant species and as a result, increase water supplies. WfW partners with local communities, government, conservation and environmental organizations, and private companies.

• The program provides jobs and training to people from among the most marginalized sectors of society. WfW currently runs over 300 projects in all nine of South Africa’s provinces.

Jobs and training provided to approximately 20,000 people from among the most marginalized sectors of society per annum, 52% of which are women.

Short-term contract jobs created through the clearing activities are undertaken, with the emphasis on endeavoring to recruit women (the target is 60%), youth (20%) and disabled (5%).

About 1 million hectares of invasive alien plants were cleared over the past seven years, which has yielded an estimated release of 48 –56 million cubic meters of additional water per annum.

Support for creation of secondary industries in poor rural communities in the vicinity of the projects, including charcoal making and furniture manufacturing

(6) The Peepoo Project in Kenya Africa

Industry Green jobs • Peepoople, a Swedish company founded in 2006, has developed a hygienic, single-use, odor-free, biodegradable toilet bag (the "Peepoo" bag), that can be knotted and buried.

• A layer of urea crystals breaks down the waste into fertilizer killing off disease-producing pathogens. The bag uses a minimum of material while providing maximum hygiene. The Peepoople initiative also enables collection and reuse systems to arise, thus providing service systems and employment opportunities. T

• he Peepoo is now being sold in the Silanga Village, in Kibera, by local micro entrepreneur women, contributing to their daily income.

• A successful collection system has also been established with different, staffed drop points, where Peepoo users can drop off their used peepoos every day. As the Peepoos turns into valuable fertilizer, each Peepoo user receives a refund for every used Peepoo handed in at the drop point.

There will be some 1000 employment opportunities for distribution and collection services, with a focus on empowering women.

• Decreased risk of groundwater and drinking water contamination. • Creation of fertilizer through bag disposal.

Improved sanitation and human health benefits.

(7) Low Carbon and Green Growth Bill in Republic of Korea Asia

Industry Green jobs • In 2008, a new national policy vision of “Low Carbon, Green Growth” was adopted that includes a long-term National Strategy for Green Growth (2009–2050), a Five-Year Plan for Green Growth (“Five-Year Plan”), and a Framework Act for Low Carbon Green Growth.

• This first Five-Year Plan covers the period 2009–2013 and comprises a manifest of political commitments and a blueprint for government action. The Plan also contains budgetary earmarks and tasks delegated to relevant ROK ministries, and targets spending of 2% of the nation’s GDP on green growth.

• Investment will be initially weighted toward infrastructure projects to help combat the sagging economy, with spending shifting toward export-focused green-tech research and development over time.

• Projected increase in employment in greening sectors.

• Expected improvements in energy and income security.

• Reduced reliance on imported fuel.

• Korea aims to reduce greenhouse gas emissions by 30% below the nation's business-as-usual levels by 2020. • Improved market opportunities for green products.

The Republic of Korea arranged a US$30.7 billion stimulus package to support the government's efforts to various environmental projects including development of renewable energy resources, energy efficient buildings, low carbon vehicles, expansion of railways, and water and waste management. The government has also established mandatory reporting of carbon emissions by all carbon and energy-intensive industries; cap on greenhouse gas emissions.

(8) Industry Green jobs, • Namibia’s establishment of conservancies – • Over 95,000 Namibians have • Conservancies represent

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Community Based Natural Resource Management Programme (CBNRM) in Namibia Africa

Agriculture Investments in the protection and improvement of biodiversity

legally gazetted areas within the state’s communal lands – is among the most successful efforts by developing nations to decentralize natural resource management and simultaneously combat poverty.

• It is one of the largest-scale demonstrations of CBNRM and the state-sanctioned empowerment of local communities. Conservancies are run by elected committees of local people, to whom the government devolves user rights over wildlife within the conservancy boundaries.

• This has provided the incentive to sustainably manage wildlife populations to attract tourists and big game hunters. Technical assistance in managing the conservancy is provided by government officials and local and international NGOs.

received benefits of some kind since 1998 including jobs, training, game meat, cash dividends, and social benefits such as school improvements or water supply maintenance funded by conservancy revenue.

• 547 full-time and 3,250 part-time locals employed via tourist lodges, camps, guide services, and related businesses such as handicraft production.

• Women's livelihoods and status have improved within the conservancies. Women fill more than half of the full and part-time jobs generated by conservancy businesses.

14% of total land area as of 2007. • Increased populations of elephant, zebra, oryx, springbok, and black rhino due to reduced poaching on conservancy lands. • Managing land primarily for wildlife has reduced cattle overgrazing in many areas.

Tool 3: Cost recovery and financing of water and sanitation services Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

a) Case studies plenary session World Bank (1) Social contract formulas in rural areas: the India Naandi Foundation water treatment plants South Asia

- Cost recovery and financing of water and sanitation services

• NGO partnering with private firm for drinking water treatment and provision

• With agreement from government and community, the NGO Naandi Foundation purchase ultra-violet water treatment plants from a private company who then build and undertake O&M for eight years; Naandi manage the program, secure finance, hire a community worker to promote safe water, and collect user fees

• Villagers provide the water source, the land for the plant, and subsidized electricity tariff

• Safe drinking water provided at a price well below bottled water

• Financing: 20% cash from village (villagers/philanthropists/local government), rest raised by Naandi through long-term bank loans, partly underwritten by philanthropic organizations

As of 2010, Naandi had 300 plants serving safe drinking water to 393,000 households

(2) Social contract formulas in rural areas: Burkina Faso PAR (Management Reform Program) and sector policy Africa

Cost recovery and financing of water and sanitation services

• New approach to rural water supply management with local government ‘communes’ contracting private operators

• Communes sign an agreement with private firms who build and operate handpumps or pipes schemes, which may include maintenance and repair responsibilities

• Build-and-operate contracts ensure

• Of 7 piped schemes of this new management approach trialed, 3 did not earn enough revenue to meet running costs, while 4 did cover operational costs and set aside funds for handpump maintenance and

• Government decentralization resulted in devolution of responsibilities for water services to communes and the design of the new private operator management model

• WUAs are essential to

Absence of meters on handpumps made it difficult to enforce tariffs

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Tool 3: Cost recovery and financing of water and sanitation services Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

the firm does quality construction, the operator is familiar with the system, and reduces disputes over the state of infrastructure

• Grouping several schemes into a single contract, spreading costs and revenue across several schemes was essential to the company entering into the market and making a profit

piped scheme replacement

• The 4 profit-making schemes covered the deficit on the other 3 schemes

the model: for handpump schemes, WUAs are responsible for management; for piped schemes, WUAs are responsible for reporting on performance of the private operator

(3) Small scale urban sanitation financing in Vietnam South-east Asia

Cities Cost recovery and financing of water and sanitation services

• Sanitation Revolving Fund (SRF) (financed by World Bank, Governments of Australia, Finland and Denmark) to provide loans to low-income households for building on-site sanitation facilities in 3 cities

• Facilities included mostly septic tanks, but also urine diverting / composting latrine and sewer connections

• Software support for sanitation promotion, hygiene promotion and creation of Savings and Loan groups

• Average costs per household: US$197 hardware, US$21 software support

• Small loans (US$145) for hardware construction, over 2 years with subsidized interest rates equivalent to US$6 per loan

• Loans covered 65% of average costs of septic tank (US$225), so households had to find other sources to cover total cost

• Very efficient use of public funds which covered 7% of total costs and are sustainable (have revolved many times)

• Costs moderate compared to other programs but high when compared to household incomes

Program resulted in a rapid extension of coverage and benefitted almost 200,000 people over seven years (2001-2008)

Funds initiated by local utilities and placed under management of the Women’s Union – experienced in managing microfinance schemes

Scale-up has been achieved in country

Solutions not affordable to the poorest who were therefore excluded

b) Additional case studies market place session and compendium (4) Improved Latrines Program, Mozambique Africa

Cities Cost recovery and financing of water and sanitation services

• Program provided improved latrines to peri-urban areas

• Software support for sanitation promotion and establishment of local workshops building slabs and latrines

• Average cost – US$70 per latrine • Output-based subsidies to local

sanitation providers for each slab or latrine sold (intended to cover 40-60% of hardware costs)

• Public funds covered an estimated 58% of total costs

• Affordable basic sanitation solutions provided, for which there will be a reduced demand when incomes grow

• Dependent on external financing (with marked decline when subsidies drop)

• Program resulted in rapid increases in coverage only when software support was also provided

• Benefitted 1,888,000 people

• Self-selection via level of service with limited inclusion error (where ‘non-poor’ get a subsidy)

Initially funded by external donors (including UNDP) but later transferred to the Government of Mozambique

Was scaled up in major urban centers but further scale-up unlikely

(5) PAQPUD sanitation program, Senegal

Cities Cost recovery and financing of water and sanitation

• A range of options provided to poor peri-urban areas to from improved latrines to septic tanks

• Software support for sanitation promotion, including hygiene education, community

• Comprehensive sanitation solutions expensive by both national and international standards

• Benefitted 411,000 people

• Speed of coverage increased when required household contribution was

The high dependence on public funds and limited leverage means the program is too expensive to scale up nationwide

• Subsidies were offered as a percentage of costs, resulting in higher subsidies for costlier solutions with limited targeting of the poor

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Tool 3: Cost recovery and financing of water and sanitation services Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

services organization, technical support • Average costs per household:

US$568 hardware, US$144 software support

• Output-based hardware subsidies to local sanitation providers for each sanitation solution built (covering about 75%) of hardware costs

• Public finance from Government of Senegal (with World Bank loan), covering 89% of total costs

• High demand on public funds

reduced • Geographical

targeting reached intended recipients

• Attempts at providing credit to spread household contribution (paid up-front) had limited success

(6) Community water management improvement project for traditional farmers in Mkushi, Kapiri Mposhi, Masaiti and Chingola districts. Africa

Agriculture

Cost recovery and financing of water and sanitation services

• Institutional capacity-building and empowerment of farmers

• Improving water access for enhanced productivity

• Credit access & investment facilitation

• Knowledge dissemination.

Expected: About 1000 smallholder farmers investing in self-supply solutions for improved production and income generation. Creation of enabling environment for smallholder self-supply investments. Improved knowledge on low-cost irrigation options among farmers and major stakeholders

Expected: Increased availability of affordable irrigation equipment

(7) Implementation of an integrated project of water supply and sanitation services for the urban poor in Kagugube parish, Kampala Africa

Cities Cost recovery and financing of water and sanitation services

• Establish sanitation services tailored to the needs of the urban poor in the low-income community, with a special focus on Ecological Sanitation

• Expand and rehabilitate the water supply network

• Ensure access to water for the urban poor at the official tariffs by installing pre-paid stand pipes

• Strengthen the NWSC Unit charged with developing pro-poor infrastructure and operational mechanisms.

Achieved: Construction of water supply and sanitation infrastructure including 32 pre-paid meters enabling 24 hr access at the NWSC low social tariff for the urban poor; one additional public toilet with ablution facilities; and 150 household toilet stances for a beneficiary community of about 13,750 people

Expected: Innovative off-site dry sanitation based on ecological sanitation principles will be introduced.

Expected: The 14,000 residents of Kagugube Parish will have improved access to water and sanitation and be more aware of health hazards. Achieved: The NWSC’s Urban Pro-poor unit strengthened as NWSC’s lead unit for WSS service delivery to the urban poor in Uganda.

Expected: The lessons learnt from the implementation of this pilot project will used for scaling up the provision of improved water supply and sanitation services to the urban poor in Kampala and other major towns in Uganda.

(8) PRAGUAS sanitation project, Ecuador LAC

Cost recovery and financing of water and sanitation services

• Sanitation units (toilet, septic tank, sink, shower) provided to rural areas and small towns

• Strong software support to strengthen municipalities, for technical designs, monitoring, and community mobilization

• Average costs per household: US$355 hardware, US$46 software support

• Up-front fixed hardware subsidies (covering about 60% of hardware costs) provided to all communities,

• Comprehensive sanitation solutions – costly but meet existing demand and affordable

• Highly dependent on external financing

• Substantial increases in coverage with good evidence of use

• Benefitted 143,000 people

• Geographical targeting reached intended recipients

• Scale-up could be achieved in country given relatively high national income

• Only useful for countries willing and able to fund high levels of service

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Tool 3: Cost recovery and financing of water and sanitation services Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

with remaining self-financed • Financed by central government

(World Bank loan), municipalities and communities, with public funds covering 85% of total costs

(9) DISHARI sanitation project in Bangladesh Asia

- Cost recovery and financing of water and sanitation services

• Approach based on Community Led Total Sanitation, provided basic latrines to rural areas with strong demand for low-cost solutions

• Software support for community mobilization, sanitation promotion and local government strengthening

• Outcome-based financial rewards to villages that are 100% sanitized (no strings attached and do not need to be spent on sanitation)

• Average costs per household: US$17 hardware, $US7 software

• Up-front in-kind hardware subsidies targeted to the poorest only

• Public funds covered 31% of total costs

• Basic sanitation costs reasonable when compared to household income (3-4%)

• Efficient use of public funds

• Financially sustainable as long as public sector continues to contribute

• Substantial and rapid increase in coverage, mostly sustained

• Benefitted 1,631,000 people in 5 districts with high incidence of poverty

• Effective targeting of the poorest through community involvement

• Initiated by group of donors and NGOs, but aimed to strengthen local governments to become main implementers instead of NGOs

• Project complements the government’s national sanitation program

Scale-up achievable at a reasonable cost

Weak monitoring and evaluation systems, based on self-reporting with tendency to over-report and no independent verification

(10) Total Sanitation Campaign in Maharashtra, India South Asia

- Cost recovery and financing of water and sanitation services

• Approach based on Community Led Total Sanitation, provided improved latrines to rural areas

• Software support for community mobilization, including outcome-based financial rewards to villages reaching Open Defecation Free status to be spent on sanitation investments

• Average costs per household: US$208 hardware, US$15 software support

• Outcome-based hardware subsidies for below-poverty-line households (covering about 22% of hardware costs)

• Access to credit in some districts only

• Public funds covered 9% of total costs

• Program provided improved sanitation, with households investing in a level of service based on what they could afford

• Low demands on and efficient use of external public funds

• Program saw very rapid increases in coverage (with some cases of relapse)

• Benefitted 21,200,000 people

• Means-tested poverty targeting was effective, although some were excluded

Nationwide program, funded primarily by the Government of India, and implemented by the State of Maharashtra

Has been scaled up at federal level, though coverage still needs to improve

(11) Investments in wastewater for a low-income small community in Armenia MENA Source: AstanaECE

Cost recovery and financing of water and sanitation services; water technology

• Wastewater treatment plant to address contamination of community farmlands by municipal wastewater from the community

• Project supported by funds from the UNDP/GEF Small Grants Programme, with community inputting 66% of total budget (of which 64.7% monetary, 35.3% in kind)

• Operating and maintenance

Project will address agricultural land degradation and groundwater pollution caused by wastewater discharge

Community given training on sustainable land management

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Tool 3: Cost recovery and financing of water and sanitation services Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

company will oversee plant operation paid by wastewater treatment fees collected from community, and fees for use of treated water for irrigation

Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

a) Case studies plenary session UNEP (1) Fund for the Protection of Water in Ecuador (FONAG)

LAC

Watersheds

Investments in the protection and improvement of biodiversity

• FONAG established by the municipal government and a NGO as a trust fund to which international donors and downstream water users contribute (Quito water utility, a brewery, hydropower producers, irrigation users)

• Developed a market that channels economic demand for urban water supply (for 1.5 million people) to fund conservation in upstream protected areas where the water supply originates

• Activities involve land purchase in critical areas to sustain ecosystem services and improvement of agricultural management practices, but no direct payments to farmers

Gains on investments fully utilized for watershed protection

Watershed management and conservation projects in water supply areas should have direct positive impacts on biodiversity as the area is rich in flora and fauna, including endangered species

High degree of community participation in projects including environmental education and capacity building to promote environmentally-friendly agriculture and other activities, and to reduce environmentally-damaging activities

• Fund managed by an independent private asset manager

• Board of Directors includes local communities, government, local NGOs, HEPs and the national protected area authority

• A driver for establishment of FONAG was a change in the law governing public financing in 1999 allowing government organizations to invest funds in private financial mechanisms

• Local political support was crucial

Following the success of FONAG, the water fund scheme has been replicated in 6 watersheds nationally, and in other Latin American countries

(2) Payment for Forest Environmental services (PFES): pilot implementation in Lam Dong Province, Vietnam

Asia

Investments in the protection and improvement of biodiversity

(3) Payment for Environmental Services at Lake Naivasha,

Investments in the protection and

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

Kenya.

Africa

improvement of biodiversity

b) Additional case studies market place and compendium

(4) Payment for ecosystem services and alternative livelihoods in Yujiashan village, rural China

Asia

Watersheds

Investments in the protection and improvement of biodiversity

• PES scheme to reduce river pollution from animal waste, fertilizer and herbicide use; and soil erosion from timber harvesting for fuel and charcoal production in the biodiverse Yujiashan Nature Reserve

• Payments made to villagers from a fund set up and administered by Shanshui Conservation Center, Conservation International and the local government

• People from Pingwu City (downstream, suffering river pollution from Yujiashan flows) can contribute voluntarily to the fund when they pay their water utility fees

An initial valuation considered 3 types of ecosystem services: biodiversity conservation, supply of clean water and carbon sequestration

Villagers provided with a sustainable energy supply and new sources of income to reduce the harvesting of trees for firewood and charcoal production, e.g. training and capital for biogas plants to capture methane from pig dung, cultivation of bees

(5) Conserving and managing forests as source of water for Fukuoka City, Japan

Asia

Watersheds / cities

Investments in the protection and improvement of biodiversity

• The Fukuoka City Foundation for Water Resource Preservation Projects is a fund for forest conservation in catchments where the city’s water supply originates

• Fund receives half its revenue from water charges and half from the city’s general budget

• Fund finances projects in headwater areas which improve the water recharge capacity of the forest; local exchange programs; and a river basin based partnership to promote cooperation between neighboring municipalities on conservation

100 million JYen allocated annually for initiatives

Fukuoka City raises awareness amongst its citizens of the importance of water; offers exchange programs for citizens to participate in silvicultural management, rice planting and other activities in water source areas; offers grants for tree planting and clearing underbrush

The initiative fosters collaboration between Fukuoka City and neighboring municipalities to implement joint conservation activities in the water source areas

(6) Procuencas Payment for Ecosystem Services Project, Costa Rica

LAC

Watersheds

Investments in the protection and improvement of biodiversity

• Private PES project for watershed conservation initiated by ESPH (Public Services Enterprise of Heredia)

• Revenue from a Hydrological Fee on water bills, private contributions, and partnerships between ESPH and other private companies

• Project aims to conserve drinking water sources managed by ESPH and improve water quality, through

• Landowners receive $540 per ha for new tree plantations, $210 per ha for established plantations and forest conservation and regeneration, and $0.8 per tree for agro-forestry systems over 5 years

• Procuencas provides higher payments to

• Improved water quality and ecosystem health

• Reduction in pre-existing problems of deforestation, degradation due to urbanization, and impacts of livestock

Improved water quality for consumption, contributing to public health objectives

• The Hydrological Fee had to be approved by the Government’s Public Services Authority

• Enactment of theForestry Law in 1996, Forestry Act 7575, ARESEP Law, the Biodiversity Act and Law 7789 helped the implementation

• Other local water companies and municipalities have approached ESPH to learn from their success

• Project inspired the Government to adopt the Hydrological Fee financial mechanism and upscale it to the national level

• Has been used as a

• Difficulties for ESPH personnel communicating the objectives and benefits of the program to users

• People being unaware of the new fee or the importance of preserving upstream watershed

• Municipalities are

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

forest conservation, reforestation programs, environmental education and protection of groundwater sources

• Landowners upstream compensated for their activities (e.g. reforestation)

beneficiaries in its region than the PES program run by the National Forestry Fund FONAFIO

• Financially self-sufficient PES scheme and adequate handling of Willingness-to-Pay to make beneficiaries of environmental services pay for investment in watershed health

of the project, e.g. the Forestry Law identifies the role of forests/tree plantations/agro-forestry systems in providing hydrological services

model in other parts of world, e.g. Ecuador

allowing (illegal) new development projects close to water sources – could jeopardize achievements made

(7) CONAFOR Payment for Ecosystem Services (National Forestry Commision), Mexico

LAC

Watershed

Investments Investment in the protection and improvement of biodiversity

• Federal PES program which pays landowners for preserving forest land and forgoing certain uses (e.g. cattle raising, agriculture), funded by a fee charged to federal water users

• Focused on areas that are important for the recharge of aquifers, maintaining surface water quality and reducing the frequency and scale of damage from flooding

• Points system used to prioritize areas by value of environmental service, poverty level and risk of deforestation

• The first 7 years saw payments of over US$300 million

• Deforestation reduced by approximately 1,800 km2, halving the annual rate from 1.6% to 0.6%

• Protects water catchments and biodiverse cloud forests, in addition to cutting emissions of around 3.2 million tonnes of carbon dioxide equivalent

• During the first 7 years, the scheme enrolled more than 3,000 forest owners (collectives and individuals)

• Majority of forest owners participating were poor

• In 2003 a change in federal law allowed a portion of water charges to be used for conservation

• Legislation reform required overcoming a bias towards supply-side solutions from the National Water Commission

(8) African case study (pending)

(9) African case study (pending)

c) Case studies that are NOT selected

(10) Wetland valuation changes development policy perspectives in Burkina Faso

Africa

Investments in the protection and improvement of biodiversity

• Development policies have historically prioritized wetlands for agriculture in the Sourou River valley, with many negative environmental impacts

• An economic valuation considered services from agriculture, tourism, timber products, non-timber forest products, pastures, fisheries and transportation on water

• Study provoked discussion amongst decision-makers on how to integrate ecosystem services into development policies and the role

• Valuation captured a range of economic benefits, with agriculture only 3% of total value of services

• Annual value for ecosystems services estimated at minimum 15 million Euros for a population of 62,224

• Monetary valuation can guide decision-makers in allocating

• The wetlands were identified as important for biodiversity

• Government decision-makers willing to incorporate information about ecosystem services in national and local policies

• Shift from agriculture-focused

• Valuation raised awareness of the range of ecosystems services communities rely on for income and livelihoods

• Study showed diversion of Mouhoun River water into Sourou valley improves groundwater recharge, decreasing time communities

Participation of all stakeholders (local and national) at all stages of valuation – this raised awareness of the usefulness of valuation as a decision-making tool for wetlands development policy

• Economic valuation of wetlands requires resources – this project was funded by donors, but government support needed for full country assessment

• Requires capacity in the methods of economic valuation, which is low in Burkina Faso and may be in other developing countries

• Success depends upon

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

of the environment in poverty reduction

resources between biodiversity conservation and other socially valuable objectives

development may reduce the sector’s negative environmental impacts

spend fetching water from boreholes

awareness of the usefulness of economic valuation tools

(11) Payments for groundwater recharge in Kumamoto Prefecture, Japan

Asia

Aquifers Investments in the protection and improvement of biodiversity

• Innovative groundwater recharge scheme launched by a semiconductor manufacturer with a local NGO, agricultural cooperative and land improvement districts in Kumamoto Prefecture

• The company pays local farmers to flood abandoned rice fields between crops or organic rice paddies after harvest with water drawn from the Shirakawa River to let it soak back into the ground, offsetting the groundwater pumped by its operating plant

Cooperating farmers are paid a fee of 11,000 Japanese Yen per 1,000m2 to cover management and preparation costs for 30 days of off-season flooding

• The accumulated water used by the company since 2009 has been recharged Studies show that the (groundwater fed) spring water in Lake Ezu has recently shown an increasing trend, indicating signs of recovery in Kumamoto City’s groundwater resources

The scheme has been replicated by other local firms and adopted by the Kumamoto City government in the municipal water conservation program

(12) Saving sewage treatment costs through wetland protection in the Nakivubo wetland, Uganda

Africa

Cities Investments in the protection and improvement of biodiversity

• The Nakivubo swamp in Uganda provides valuable wastewater purification and nutrient retention ecosystem services which benefit the Greater City of Kampala

• A 2003 valuation of these services showed that protecting the wetland could save costs of introducing new public services like sewage control

• However, despite recognition of its value, half the wetland has been modified and only lower parts still in fair condition

• In 2008 the Kampala Sanitation Programme proposed a new plan to reduce pollutant load by both expanding sewage treatment facilities and rehabilitating the wetland

• Economic benefits of wetland protection relate to the avoided cost of: replacing natural wetland functions with man-made alternatives, and mitigating the impacts of wetland loss

• Valuation found wastewater purification and nutrient retention services to have value of US$1-1.75 million per year, but a sewage treatment plant would cost over US$2 million per year

• Following valuation, plans to drain and reclaim the wetland were reversed

• But, these ecosystem services have been reduced in recent years due to continued pressure from settlements, industry, and drainage channels for crop production, renewing concern for wetland conservation

The swamp also supports small-scale income activities for slum dwellers, e.g. papyrus harvesting, brick making and fish farming

(13) Conserving the East Kolkata Wetlands, India

South Asia

Investments in the protection and improvement of biodiversity

• NGO-led project to jointly tackle poverty and protect the peri-urban East Kolkata Wetlands, a threatened Ramsar site

• ‘Biorights’ model implemented that translates environmental services into a financial tool to support poor communities for their involvement in conservation

• Ecotourism used to compensate poor communities (dependent on the wetlands for income generating

• The wetlands' mosaic of fishponds ,lakes, swamps and canals cover 4000 ha and act as solar reactors to treat 880 million liters of sewerage each day

• Wastewater-fed fisheries also support the livelihoods of around 90,000

• 56% habitat restoration in project area achieved

• Rehabilitation of 12 fish species endemic to East Kolkata Wetlands

• 450 families covered by micro-insurance policy

• 78% of stakeholders showed attitude change towards wetland conservation

• 17% increase in income for community partners

High levels of participation and community decision making

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

activities) for opportunity costs of protecting the wetlands

• Part of revenue used for micro-health insurance coverage for wetlanders

fishermen

(14) Villagers protect environmental services in Sukhomajri, India

South Asia

Watersheds

Investments in the protection and improvement of biodiversity

• Initiative to address the high sedimentation in Lake Sukhna, Haryana State, affecting the drinking water supply of the nearby town Chandigarh and caused by cultivation of steep lands and animal grazing in the upstream village of Sukhomajri

• A central government agency, the Central Soil and Water Conservation Research and Training Institute (CSWCRTI), installed conservation structures such as a check dam and gully plugs to stop the flow of silt

• Watershed management activities to re-vegetated the land and protect upslope areas; soil and water conservation techniques on farmland

• Villagers required to stop grazing animals on the watershed hills

• Rainwater stored in dam purchased with water rights distributed to all villagers, allowing them to trade among themselves (later replaced by user fees)

• Improved agricultural productivity due to greater water availability in the check dam and reduced soil erosion

• Fish farming in dam • Water rights system

allows the landless and poor to profit from selling their shares

• Reduction in siltation saves Chandigarh around US$ 200,000 annually

• The environmental services addressed by the scheme were: sedimentation reduction and management of water flows

• Project resulted in a 96% decrease in siltation into Lake Sukhna and increased tree cover

• All villages incentivized to engage in watershed protection activities to prevent the dams from silting up

• No direct payments were involved, but villagers benefitted from reduced flooding and damage to agricultural land and from improved water supply (from dam) and tradable water rights system

• Compensated for animal grazing restrictions by forest department allowing access to increased fodder from public lands

A water users association managed the water allocation

People recently shifting to private sources of water, digging tubewells to irrigate their fields

(15) Payments and technical support for reforestation and soil conservation for watershed protection, Brazil.

South America

Watersheds

Investments in the protection and improvement of biodiversity

This case gives an overview of the strategy adopted by the municipality of Extrema, a city about 100 km from the metropolitan region of São Paulo. Accordingly to the River Basin

Management Plan, Extrema and three other municipalities in the state of Minas Gerais are responsible for 2/3 of the water supplied to the metropolitan region. For this reason, Extrema is a high priority area in the “Cantareira System.”

Conserve and foster natural restoration of

local water resources

Attracted 70 farmers so far (approximately 2,180 ha), according to institutions involved in the project. To date, more than 438 ha have been restored. In 2009, the Municipal Fund for Payment for Environmental Services was

established with the goal of extending payments to rural producers for a period longer than

Participating rural producers (farmers) commit to individually defined targets based on the full

environmental state of their property. They are paid monthly for a period of four years. The

payment is based on the total area of their property and on a reference value defined by the

municipal administration (equivalent to ~87

This pilot initiative has been replicated in the Guandú watershed and the Pipiripau basin, where ANA and TNC

are developing plans for the scheme because it is an important source of water for the Federal District. The Camboriú watershed, one of the most important tourist centers in southern Brazil has also used the initiative as a model.

This water system has become an object of concern due to issues related to the maintenance and regulation of water flow. The river basin experiences intense environmental degradation. Approximately 70% of the watershed is used for various human activities, suffers poor quality vegetation and the rivers have an observable reduction in water quality. Diffuse pollution from rural sources, predominantly erosion and

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

the four year term.

USD/hectare/year in 2009).

sedimentation is a serious threat that may potentially interfere with water quality and the operations of the reservoirs.

(16) Mondi Wetlands Programme (MWP), South Africa

Africa

Industry / watersheds

Investments in the protection and improvement of biodiversity

• Partnership between international paper and packaging company Mondi and 3 conservation organizations

• Mondi’s dependence on water and healthy wetlands led them to be ambassadors for sound wetland practices

• Multi-level strategies to promote the rehabilitation, protection and wise use of wetlands among government agencies and wetland users: awareness raising, policy work and lobbying, catalyzing partnerships, research-based management tools, training and on-the ground support

The MWP has helped establish Mondi’s environmental name and credibility, giving them a competitive edge in the industry

• Hugely successful in generating social change to manage wetlands more sustainably

• Promoted the delineation of wetland boundaries which has now been adopted as government policy for all land uses

• Forest industry has removed thousands of hectares of commercial trees from wetlands and buffer zones, led by Mondi’s example

• The rural poor in South Africa are particularly dependent on the services provided by healthy wetlands and therefore benefit from improvements

• The MWP played a key role in the founding of the government-led and -funded Working for Wetlands Programme in 2000 which trains and employs 2,000 of the poorest people in wetland rehabilitation

Within South Africa, the MWP develops relationships with communities, government, commercial farmers, industry, and agricultural and conservation extension services to have a permanent impact on conservation of all the country’s wetlands

(17)Water funds for conservation of ecosystem services in watersheds, Colombia

LAC

Watersheds

Investments in the protection and improvement of biodiversity

• Water fund initiated by The Nature Conservancy , a sugar cane producer association, the regional environmental authority and local NGOs in the East Cauca Valley

• Finances conservation activities to secure biodiversity and water-related services in the 9 upstream watersheds

• InVEST, an ecosystem service mapping and modelling tool, was used to provide quantitative estimates of ecosystem returns, directing investment towards areas with the highest potential for

• Use of InVEST tool enabled development of a portfolio of the most efficient and cost-effective activities

• Activities will benefit 920,000 people downstream and the sugar cane industry which is important to the Colombian economy

• Ecosystem services prioritized are the regulation of flows and improved water quality through decreased sedimentation

• Investments in conserving at least 125,000 hectares of natural ecosystems and improving management of the landscape

• Activities include

The fund is used to maintain or enhance the livelihoods of watershed communities, providing incentives for poor ranchers and farmers to change their unsustainable land use practice

The fund is governed by a public-private partnership of water users and stakeholders who jointly decide on how to invest in conservation activities

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

delivering services restoration, reforestation, fencing and silvopastoral practices

(18) Autovias’s Waterway (Via des Aguas) program

LAC

Aquifers Investments in the protection and improvement of biodiversity

• Autovias’s Waterway (Via des Aguas) program aims to mitigate the impacts of its roadways on water resources in Brazil’s Guarani aquifer recharge zone.

• In order to find a solution to prevent water damage during the rainy season, Autovias has developed an ambitious project that collects water on the highway’s surface and directs it towards the aquifer. The preservation of this vital water reserve was one of the main objectives in the program’s design.

Mitigating the impacts of roadways on natural resources, in particular water, as the entire highway grid that it manages is located in the Guarani aquifer recharge zone.

Autovias’s Waterway program benefits the

neighboring land owners and the community as a whole, through the economic, social and environmental development of water

resource management.

Autovias has been awarded a 20-year

government franchise for Lot 10 of the São

Paulo State Highway Franchise Program.

The geo-economic region of Ribeirão Preto, Araraquara, São Carlos and Franca is under its direct management. Founded in 1912, Autovias

S/A is a private-sector company, belonging to

OHL – Obrascon Huarte Lain S.A., a major Spanish construction, concession, development

and industrial group.

Road system operations involve a number of activities, including infrastructure construction works, which often cause topography and landscape changes to occur, modifying the behavior of water dynamics within catchment areas, leading to: erosion, settling, decreased ground-water infiltration, particularly in aquifer recharge capacity, and direct changes in the local hydrological cycle.

(19) Floodplain restoration for flood control in the Yangtze

Asia

Source: Pittock, Jamie and Ming Xu. “World Resources

Watersheds

Investments in the protection and improvement of biodiversity

• The Yangtze is subject to summer monsoon flooding, and over 400 million people live in the basin and produce 40% of China’s GDP

• Government flood management policies shift from an engineering-focused infrastructure approach to ‘soft’ floodplain restoration measures

• Removal of dikes and reconnecting rivers to their wetlands

• Relocation of 2.4 million people from the floodplain to nearby villages on high ground, with state assistance for housing reconstruction, household biogas

• Floodplain restoration is relatively inexpensive compared to infrastructure construction

• Reduction of flood risk has led to more outside investment, creating more jobs for local villagers

• Helps adapt to climate change impacts (large floods becoming more frequent and old levees unable to withstand large floods)

• Improved water quality and biodiversity

• Increase in socio-economic resilience due to economic diversification, higher incomes reduced risk from flooding and enhanced social capacities

• Higher incomes have enabled more families to send their children to school and college

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

Report Case Study. Controlling Yangtze River Floods: A New Approach.” World Resources Report, Washington DC. Available online at http://www.worldresourcesreport.org

systems and new agricultural businesses

(20) Sustainable Rivers Project: the Savanna River, US

North America

Source: http://www.iwr.usace.army.mil/docs/sustainablerivers/Sustainable_Rivers_Overview-Apr_2005.pdf

Watersheds

Investments in the protection and improvement of biodiversity

• In 2002, the US Army Corps of Engineers and the Nature Conservancy launched the Sustainable Rivers Project to restore rivers below 3 dams which had negatively altered the natural flow patterns that support the biodiversity of the river, floodplain and estuary

• Assessment of flow regimes that restore downstream ecosystem processes and services, while still meeting other human uses of water

• A flow prescription plan was implemented, with seasonal controlled releases, which mimic the natural flow conditions and flood events prior to the construction of the dams

The flow regime was designed to continue meeting other demands such power generation, recreation and flood control, to ensure no negative economic impacts

• The controlled releases support ecosystems downstream

• The ecological effects of the water flow restoration have been evaluated, e.g. monitoring the regenerative benefits to floodplain forest, monitoring floodplain invertebrates and fish, impacts on salinity of the estuary

• Valuable insights gained into the flow patterns needed to support native wildlife

• The project had the participation of a very large group of over 50 leading scientists from state governments, federal agencies, academic institutions and other NGOs

• To reduce difficulties and delays in working with so many, the most time-consuming activities were given to one research team, with their findings providing a starting point for the other scientists

Difficulties in getting participants to agree on definite quantitative flow targets, but this was overcome by reminding that flow recommendations were a first approximation and would be refined over time through adaptive management

(21) Ecosystem restoration and hydropower in Rwanda

Africa

Source: http://www.worl

Watersheds

Investments in the protection and improvement of biodiversity

• In the mid-2000s, Rwanda suffered an electricity supply crisis due to decline in level of Lake Bulera, a source of water for hydropower, caused by poor management of the upstream Rugezi Wetlands and human activity in the surrounding Rugezi-Bulera-Ruhondo watershed

• Government used a combination of policy interventions and restoration activities to rehabilitate the Rugezi Wetlands, recognizing the importance of integrated watershed management to promote energy

• Increase in hydroelectricity production

• Establishment of eco-tourism

• Benefits to local communities: radical terracing and agroforestry has increased crop productivity; grasses planted on terraces and lake banks provide fodder for

• Wetland restoration activities have enhanced their filtering capacity, reduced siltation rates and increased water flow into Lake Bulera

• Flora and fauna has increased in the Rugezi Wetlands

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Tool 4: Investments in the protection and improvement of biodiversity

Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

dresourcesreport.org/files/wrr/WRR%20Case%20Study_Ecosystem%20Restoration%20and%20Hydropower%20in%20Rwanda_0.pdf

security livestock

(22) Ecological restoration in the Syrdaria basin

Asia

Source: AstanaECE

Watersheds

Investments in the protection and improvement of biodiversity

• The Syrdaria is one of the two major rivers of Central Asia that seriously suffered from overabstraction, resulting in the Aral Sea disaster.

• However, it was less influenced by draw-off discharge and clearing of riparian forests for agriculture, and has a lower population density than similar threatened river systems in Central Asia (the Amudarya in particular).

• Thus it provides an opportunity to become a model for sustainable management and socio-economic development of river basins in the region, as well as for species conservation and restoration.

• The project “Biodiversity preservation and integrated river basin development in the Syrdaria River Valley of Kazakhstan” aims to provide a basis for integrated river basin management, nature protection and ecosystems restoration.

• The project includes development of new protected areas and of different forms of sustainable land use in areas identified as important ecological corridors and of buffer zones

• Intermediate project results already show a significant positive impact on the sustainability of water management in the middle reaches of the Syrdaria.

The project is executed in close cooperation with local communities and non-governmental organizations (NGOs) in order to achieve sustainable use of ecosystems and new opportunities for development.

(22) Ecological restoration in the Syrdaria basin

Asia

Source: AstanaECE

Watersheds

(23) Payment for Ecosystem Services Scheme in New York City

North America

Source: AstanaECE

Cities

Watersheds

Investments in the protection and improvement of biodiversity

• The Catskill and Delaware watersheds provide 90 per cent of the water consumed by the city of New York.

• As the quality of water decreased in the 1990’s, the United States Environmental Protection Agency required that all surface water be filtered, unless safe water could be provided under natural conditions.

• Instead of building a filtration plant, the city authorities decided to invest $1.5 billion over 10 years in a watershed programme to be administered by the Catskill Watershed Corporation, a non-profit organization.

• Now the scheme is financed by a tax included in New York water users’ bills.

• Taxpayers’ water bills increased by 9 per cent instead of doubling.

• The programme is based on improvements in farm and forestry practices in order to reduce water pollution.

The PES scheme was initiated with money from the city of New York, the state of New York and the Federal Government.

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Tool 5: Water technology Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

a) Case studies plenary session UNW-DPC (1) Improvement of water supply through a GIS-based monitoring and control system for water loss reduction in Ouagadougou, Burkina Faso Africa

Cities Water technology

• Pilot project to reduce water losses in the distribution system of the municipal utility, with leak detection devices, pressure and flow control sensors with real-time and online data transmission, and automated pressure valves, all controlled by a GIS-based computerized system

• Implementation was supported by intensive capacity development programme

• Local jobs created from the investment in and operation of the water loss reduction program

• Wider job creation from the knock-on effect of improved water supply on the local economy and public and environmental health

• Transparent structures and reduced water theft

• Improved water supply, where before the project there would be no supply in certain town areas and at certain times

• Improved attitude amongst customers, awareness of the importance of protecting water resources and caring for public water supply property

(2) Industrial wastewater reclamation technology for urban irrigation in Windhoek, Namibia Africa

Industry Agriculture

Water technology

• Wastewater reclamation plant based on cost- and energy-efficient technologies to purify urban and industrial waterwater for irrigational reuse

• Implemented through a BOOT-type contract (build, own, operate and transfer) with a contractors consortium of companies from Africa and Europe

Increase in land value in project area (dry land with no water resources for irrigation is worth little, whereas irrigated land has higher value)

• Reducing the quantity of water abstracted leaves more to meet environmental requirements

• Ecosystems benefit from a reduction in discharge of contaminated wastewater

Good potential for scaling up once project demonstrates success and once water tariffs and wastewater charges reflect a reasonable proportion of real costs)

(3) Web-based system for water and environmental studies MENA

- Water technology

• EU-funded web-based Learning Management System (LMS) for water and environmental studies, initiated by a partnership of institutions from Germany and Egypt

• Online courses on sustainable water management, and the interrelationship between technical, social, economic and environmental aspects

• The LMS offers communications tools to ensure social learning

• Provides training to professionals from Egypt’s Ministry of Water Resources

• Knowledge of environmental and water management supports newly created green jobs

• Students have started businesses for decentralized water treatment units for rural areas

b) Additional case studies market place and compendium (4) Nam Theun 2 Project for poverty alleviation in Lao PDR South-east Asia

Water technology

• Water resources infrastructure in Lao PDR is being developed to generate benefits from water use such as irrigation and hydropower

• $1.25 billion Nam Theun 2 hydropower project was constructed with support from the World Bank Group Mulilateral

The project is expected to generate $1.9 billion in foreign exchange earning over a 25-year period through electricity exports to Thailand

• World Bank loan supports the management of the project’s environmental impacts on natural habitats affected directly and

• Earnings will enable the country to increase investments in health, education and basic infrastructure for the benefit of the poor

• Provision of improved

MIGA and other multi-lateral agencies’ debt guarantees were strategic to lowering the project’s political risk and essential for securing commercial investors

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Tool 5: Water technology Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

Investment Guarantee Agency (MIGA)

indirectly by the dam

• Biodiversity area set aside for conservation

housing and higher incomes for the 6,200 re-settled villagers

• Mitigation and compensation program to help communities downstream prepare for change to their livelihoods

(5) Operation of reservoirs in the Zambezi River Basin Africa

Water technology

• Reservoir operation rules of the four main dams in the Zambezi River Basin enable multiple objectives to be met: energy generation, meeting environmental requirements, reducing floods and droughts, ensuring the river’s navigability

• The system has two states of operation: ordinary and emergency, and a system in place alerts government bodies and the public of the current status

Operation rules have made it possible to minimise the adverse impacts of floods and droughts whilst meeting power requirements

Reservoir operation is overseen by several basin and regional organizations responsible for the river’s infrastructure, including the national electricity provider and the Zambezi River Authority

(6) Utilisation of solar and wind energy for rural water supply in Ethiopia. Africa

Water technology

• Inception phase consisting of assessment, preparation and sensitization

• Design and implementation in two phases including capacity building of local institutions and communities, technology selection and engineering design; implementation and monitoring; and

• Development of a framework for incorporation of solar/wind into the UAP including policy development, tools for implementation, private sector support options, communication strategy and awareness creation.

Expected: • Local private sector

supporting the supply and after sales service of solar and wind pumps equipment, including supply of spare parts and maintenance.

Expected: • Increased demand for

solar/wind technologies from end-users and other stakeholders with 130,000 people directly benefiting from access to water under the pilot schemes.

• Water sector specialists systematically including solar and wind technological options among those to be considered where conditions allow.

(7) Improved Sanitation and Water Supply Service Delivery to the Urban Poor in Ghana through Tripartite Partnerships Africa

Cities Water technology

• Test a range of different innovative management models, approaches and technologies for providing WASH services to the urban poor;

• Provide infrastructure in three pilot areas (two small towns and one urban slum) under the new management models;

• Support development of a more enabling environment by undertaking knowledge and advocacy activities.

Baseline surveys conducted, designs prepared and WSS infrastructure put in place in the 3 pilot zones, impacting 15,000 people in an urban slum and 30,000 in two small towns. Innovative technologies and approaches tested, including: multi-

Enabling environment improved for replication and scaling up of pro-poor WASH service delivery in Ghana

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Tool 5: Water technology Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

purpose water / sanitation / washing facilities, EcoSan, biogas; micro-financing for household latrines; social marketing for sanitation; intensive hygiene education, franchised management of public facilities; private sector entrepreneurs and facility operators, re-use of treated excreta by farmers; Capacity developed for sustained management of the facilities.

(8) Kisumu District primary schools water and sanitation project. Africa

Water technology

• Construct rainwater harvesting systems, EcoSan toilets and solid waste management systems in the 6 selected schools

• Train pupils, teachers and parents in hygiene and environmental sanitation;

• Increase the capacity of the schools, local Governments, artisans and other stakeholders to manage and maintain the facilities.

Expected: Contribute towards improved health and better environment, and at the same time contribute to meeting the water supply and sanitation needs of the schools in a sustainable manner

Expected: Serve as a demonstration for scaling up of the project model in nearby districts and throughout the country.

(9) Water harvesting project for water supply and agriculture in rural districts of the Republic of Djibouti Africa

Agriculture

Water technology

• Construction of hydraulic structures including 14 underground storage tanks, surface reservoirs and diversion works,

• Improved knowledge of the hydrogeologic conditions in the project zone

• Capacity building of government water resource engineering departments;

• Sector assessment and preparation of bankable projects for funding.

Study on the initial environmental status of the project area completed.

Expected: Improved access to water for multi-purpose uses by the rural nomad populations (2,400); better knowledge of the available water resources in the project area. Achieved: 37 rain water harvesting structures constructed and utilized for drip irrigation and water supply for vulnerable populations and sites for construction of new structures identified. Feasibility study on the using of solar energy for pumping completed. Two farmers associations trained on irrigation technologies

Expected: Increased investments through scaling-up of the new technologies in water harvesting at the country level.

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Tool 5: Water technology Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

(10) Pilot project for the introduction of water harvesting techniques in Bugesera Africa

Agriculture

Water technology

• Introduction of appropriate low cost systems for the collection of rainwater for irrigation and drinking water

• Increase productivity of the land through proper management and sustainable conservation

• Reinforce the capacities of local farmers and support agencies to implement and manage techniques for RWH and protection of natural resources.

Expected: Improved living conditions for about 21,200 rural beneficiaries through increased agricultural production and improved access to water for human and livestock consumption. Achieved: Several Rain Water harvesting structures constructed and utilized for drip irrigation and water supply for vulnerable populations.

Expected: The results of this pilot scheme will also make it possible to popularize and scale up the techniques for RWH throughout areas in the country which frequently suffer from the effects of drought.

Arrangements underway to involve private sector in the supply of reservoir lining and treadle pumps for drip irrigation, the major constraints to widespread adoption of rainwater harvesting techniques.

(11) Integrated Water Harvesting Project. Mpumalanga Africa

Agriculture

Water technology

• Community capacity building to strengthen food security and income generation

• Development of learning resources • Construction of Rainwater

Harvesting Infrastructure and related technologies

• Outreach and institutional capacity strengthening

Expected: Improve food security and income generation of the communities in Ehlanzeni District. The project will also demonstrate and stimulate interest in rainwater harvesting technologies and related approaches to secure water for food and income.

(12) Ecological sanitation in Central Asia Asia

Water technology

• Ecological sanitation uses recycled human waste as fertilizer for agriculture

• Ecological sanitation implemented in form of dry toilets in 5 schools in villages of Kostanai and South Kazakhstan oblasts and under the program ‘empowerment and local action’ carried out by Women in Europe for a Common Future

Helps prevent groundwater pollution with nitrates and bacteria from use of pit latrines

• Provides access to adequate sanitation for populations in remote areas

• Dry latrines especially useful for rural schools and in the recovery of destroyed housing after disasters

(13) Drip irrigation technology in Israel MENA

Agriculture

Water technology

• Over half irrigated area now under drip irrigation in Israel

• Modern drip technology includes computerized systems, fertigation by applying fertilizers directly to plant roots, and pressurised drippers enabling stable distribution of water

• Sub-surface drip irrigation (SDI) accounts for 5-10% of irrigated area and: conserves water, controls weeds, minimizes runoff and evaporation, increases longevity of piping and emitters, eases use of heavy equipment in the field,

• Drip irrigation has played a major role in improving water use efficiency

• Drip irrigation technology forms a major part of Israeli water technology exports (estimated that by 2017, Israeli companies will control about 50% of the global market)

SDI allows manipulation of root distribution and soil conditions in arid climates to better manage environmental variables, e.g. nutrients, salinity, oxygen and temperature

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Tool 5: Water technology Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

prevents human contact with low-quality water

(14) Increasing the efficiency of agricultural water use in Italy Europe

Agriculture

Water technology

• Investment in publicly-financed irrigation systems, replacing old open irrigation networks with piped networks, reducing losses due to evaporation

• Farmers adopt advanced irrigation systems with water saving technologies (such as drip-irrigation) to replace traditional gravity based methods (such as flooding)

• Monitoring of irrigation networks using equipment that detects losses; using automated systems with real time accounting of water usage by individual farmers using electronic cards

Loss-detecting monitoring technologies increase efficiency by allowing farmers to more closely match water use with actual crop requirements

• Piped networks with water saving technologies achieve reductions in water usage of 30-40%

• Reduction in depletion of groundwater lowers the risk of soil salinization, particularly in coastal areas

Modern loss-detecting monitoring technologies enable the equitable sharing of water resources, the exact matching of water entitlements with withdrawals and the precise reduction of volumes to each user during water shortages

(15) Sustainable water management in Singapore Southeast Asia

Industry

Water technology

• Historically, Singapore has been dependent on external sources of water because it has a limited amount of land area to store rainfall.

• In order to reduce its dependence on external sources of water, Singapore has developed and implemented extremely efficient demand and supply water management practices.

• Singapore's approach involve integrating a water demand management program that emphasizes the proper handling of the transmission and distribution network, with water conservation measures. This strategy is a combination of rainfall storage, desalination and very sophisticated technology for recycling used water.

• Federal investment in desalinization, reuse of wastewater, catchment management, public education programs, water-related recreational activities.

• Supply and demand water management policies.

• Water conservation fees

• Water conservation tax for domestic and non-domestic water users

• Water-Borne Fee is levied to offset the cost of treating used water and finance the maintenance and extension of the public sewerage system

• Sanitary Appliance Fee (SAF) is also levied per sanitary fitting per month.

• Improved water quality

• Improved water security

• Education/training in water conservation for Singapore's citizens.

• Decreased reliance on foreign water supplies.

• •Increase in recreational water activities.

(16) Solar drip irrigation in Benin Africa

Water technology

• The Solar Electric Light Fund (SELF) organization partnered with the International Crops Research Institute for Semi-Arid Tropics and devised a combination of solar-powered water pumps with drip irrigation tubes.

• By doing this, water and fertilizers

Nonprofit venture that provides microcredit lending for solar drip irrigation systems and skills training for installation and maintenance of systems.

• Prevention of greenhouse gas emissions from reduction in inefficient agricultural

• Improved food security.

• Reduced time spent collecting water for women.

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Tool 5: Water technology Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

can be supplied to plants even throughout the six-month dry season, allowing large plots of vegetables to be grown year-round. Solar energy systems are purchased by villagers through microcredit financing.

• Each family pays for its own system and participates in the ownership of community systems, spreading development funds further to help more people.

Improved nutrition: In villages irrigated with solar-powered systems, vegetable intake increased to three to five servings per day. • Improved income security: women are earning an extra $7.50 per week from the sale of fresh produce at the local market. • Increased market opportunities for solar energy

practices.

Tool 6: Water planning Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

a) Case studies plenary session CHE (1) Water planning for IWRM in Lao PDR South-east Asia

Watershed

Water planning

• Water planning within the framework of IWRM is a key instrument for tacking pressures on water resources (industrial pollution, urbanization, fertilizers, deforestation etc.)

• Focus on participatory planning • Cooperation between riparian

countries for management of the Mekong River Basin

The Mekong River Commission was created in 1995 by Laos, Thailand, Cambodia and Vietnam, with China and Myanmar becoming ‘dialogue partners’ in 1996

(2) The Ebro River Water Plan and the green economy, Spain Europe

Watershed

Water Planning

• The Ebro Water Plan is an opportunity to build an ethical, efficient and sustainable water management system for the Ebro River Basin

• Plan developed under IWRM principles

• Includes commitments to reduce pollution and increase water efficiency

• Modernization of irrigation key to reducing diffuse pollution, increasing water efficiency, increasing productivity and ensuring a better water footprint balance in Spain

• Contributes to sustainable growth, strengthening the agro-food complex in the Ebro valley

• Strengthens role of water as a renewable energy source

• Encourages the inclusion of new water uses such as for recreation

• Reducing pollution from point sources implies creation of green jobs

• 56% of investments considered in the Ebro Water Plan are for improving the environmental status of water

• Ambitious environmental objectives, with at least 85.3% of river water bodies to achieve good status by 2015

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Tool 6: Water planning Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

b) Additional case studies market place and compendium (3) Development of a IWRM plan in Namibia Africa

Watersheds

Water planning

• Ministry of Agriculture, Water and Forestry developed a IWRM plan for with support from GWP and SADC

• Outcomes include: development of a National Water Resources Development Strategy and Action Plan; better understanding of water use and allocation, water demand management options; M%E framework for integrated water and land resources; development of institutional capacity and human resources; funding mechanisms put in place for implementation; awareness campaign, including workshops in all 13 regions of country

Project expected to improve economic efficiency in the country in the long term, with benefits to the agricultural sector from improved land and water management, reduced risk of floods and droughts

Project expected to contribute towards environmental sustainability in the long term

Project expected to contribute towards social equity in the long term, improving health and sanitary condition of communities, enhancing water-related livelihoods

(4) Preparation of an IWRM action plan for Niger

Watersheds

Water planning

• Project, launched in November 2010, will develop and implement a national IWRM action plan for long-term development of and investment in the water sector, with informed collaboration with stakeholders, and support from financial partners

• Activities to include: study of water resources situation; development of IWRM action plan and investment program; development of financing strategy; stakeholder and beneficiary awareness raising

(5) Implementation of the IWRM action plan in Senegal Africa

Watersheds

Water planning

• Project aims to strengthen the capacity of the Water Resources Directorate (DGPRE) to implement the national IWRM plan, including systematic water resources licensing, planning and integration of national IWRM into Senegal’s transboundary water management activities

• Activities include: improving water information and knowledge; strengthening investment planning for IWRM; strengthening DGPRE’s institutional capacity, regulatory operations and economic recovery; awareness raising of stakeholders and decision-makers

Project will contribute to the Government’s poverty reduction strategy give momentum to the achievement of the MDGs and the Africa Water Vision for 2025

(6) The Global Water Partnership (GWP) and planning for

Watersheds

Water planning

• Since 2005, the GWP has supported countries and regional economic development communities in developing robust and flexible policies and plans to take into account climate variability

• The integration of climate change, development objectives and water agendas has helped build water security

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Tool 6: Water planning Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

climate change Africa Source: IPCC Technical Paper Water and Climate Change, p 7, http://www.ipcc.ch/pdf/technical-papers/climate-change-wateren.pdf

and change • Supported 13 governments in Africa

to design plans for improved water management to enhance water security and initiate the process for building climate resilience

• GWP Southern Africa and SADC and partners have facilitated multi-stakeholder dialogues on climate change adaptation

and enhance climate resilience

• Water and climate resilience has been incorporated in some national development plans and/or poverty reduction strategies

Region: Western Asia Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

a) Case studies plenary session ESCWA

(1) Vertical Farms and a Hydroponic Future? Western Asia css.escwa.org.lb/ICTD/1441/2-1E.pdf http://www.qnfsp.gov.qa/home http://www.gardenguides.com/90426-hydroponics-dubai.html

Agriculture

Water technology

• Hydroponics is an environmentally friendly technology that uses soilless culture technology to grow plants using balanced nutrition.

• By 2009, in the Arabian Gulf states, there were many ongoing projects.

• In 2008, Qatar established the Qatar National Food Security Programme (QNFSP) to reduce its reliance on food imports and thus develop hydroponics farming.

• The development of hydroponic agriculture in the ESCWA region is not limited to the Gulf States. Lebanon is currently piloting a hydroponic initiative in the high-value fruits, vegetables and flowers sector with the aim of improving the livelihoods of rural producers in rural parts of Lebanon through green income opportunities.

• For the same amount of water, one hectare of hydroponics farm can produce 200 to300 Tons of vegetables per year, which is about 5 to 10 times the yield of open field crop farming.

• In the United Arab Emirates, companies such as Emirates Hydroponics Farms began marketing food products, with greenhouse space reached 10,000 m2 by 2009.

• Because the water is recycled, this results in considerable savings, as Hydroponics Farms use 1/20th the amount of freshwater used by a regular farm, and result in lower nutrient cost, and much lower runoff pollution.

• The Lebanon hydroponic initiative project is implemented through an partnership that involves ACDI/VOCA, Arc-en-Ciel, the René Mouawad Foundation, the Hariri Foundation, the Safadi Foundation, USAID in cooperation with national chambers of commerce for industry and agriculture in the Bekaa as well as in the north and south of Lebanon.

(2) Water and energy linkages affecting water supply delivery in Sana'a, Yemen Western Asia

Cities Agriculture • Water and energy linkages are an important constraint on the delivery of water services in Sana’a, the capital city of Yemen.

• The delivery of water services regularly suffered interruption even

• Intermittent Supply Challenge: Intermittent power supply results in intermittent water services coverage; power outages increase

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Region: Western Asia Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

http://www.un.org/waterforlifedecade/green_economy_2011/least_developed.shtml#yemen ESCWA, 2011, “Sustainable Production and Consumption Patterns in Energy and Water Sectors in the ESCWA Region”, E/ESCWA/SDPD/2011/WP.1 http://www.escwa.un.org/information/pubaction.asp?PubID=978 www.worldwaterweek.org/documents/WWW_PDF/2009/tuesday/K11/ESCWA-Cherfane-Stockholm_PPT-Final-18Aug09.pdf

before the outbreak of political protests and unrest in Sana’a due to frequent power cuts and the inability of the public water utility to cover the cost of energy needed to pump water through the distribution network on a continuous basis.

• This exposes the close connection between water and energy and the need to consider water and energy issues in tandem when pursuing a green economy within the context of poverty alleviation and sustainable development.

production costs • Financial Challenges: Increased investment and exploitation of resources needed to compensative for power outages and constraints • Allocation Challenge: Water not used for domestic purposes due to intermittent service provision is pumped for agricultural purposes: cannot be considered ‘strored’ or ‘saved’ water for later recovery.

b) Additional case studies market place and compendium

(3) Jordan: Water Reuse and Recycling in Aqaba Western Asia css.escwa.org.lb/ICTD/1441/2-1E.pdf http://www.aw.jo/eng/

Industry Cities

Water planning

• Jordan has a large deficit in water resources, with a supply estimated at 780 MCM/year (Million Cubic Meters) while water demand, currently about 1,200 MCM/year, continues to increase.

• The Jordanian Government therefore plans to bridge this gap by improve the management of the water supply and improve wastewater treatment and reuse.

• The three treatment plants in Aqaba produce approximately 5 MCM/yr of reclaimed water, accounting for 25% of the total annual water supply of the city.

• The company works to improve water use efficiency, thanks to automation and improved management, which have significantly helped to reduce water losses.

• As part of its efforts at wastewater treatment and reuse, the Government established the Aqaba Water Company, which operates and manages five wastewater treatment plants in Aqaba, Wadi Mousa and the Ma'an Governorate.

(4) Lebanon: Reintroducing Adapted Plants

Agriculture

Water technology

• Water conservation efforts can aim at re-introducing adapted plants for agricultural development.

• Due to improved harvesting, processing and

• Given the onset of drought, drip irrigation and

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Region: Western Asia Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

for Water Saving Western Asia ESCWA, Best practices and tools for increasing productivity and competitiveness in the production sectors: Assessment of zaatar productivity and competitiveness in Lebanon, E/ESCWA/SDPD/2010/Technical Paper.3 (17 August 2010) [http://www.escwa.un.org/information/publications/edit/upload/sdpd-10-tp3.pdf] www.worldwaterweek.org/documents/WWW_PDF/2009/tuesday/K11/ESCWA-Cherfane-Stockholm_PPT-Final-18Aug09.pdf

• A 2004 project launched by ESCWA and the International Labor Organization (ILO) to create work opportunities and generate income by increasing the competitiveness of micro and small agro-industries in South Lebanon.

• Two pilot projects were established to produce honey and the herb origanum syriacum (known locally as “zaatar”), including a cluster of small-scale zaatar farmers in Bint Jbeil/Lebanon.

marketing methods, this activity helped to create sustainable livelihoods through the cultivation of a perennial commercial crop that generated income for the local cluster of a five year period.

• This is an important issue in Lebanon where the agricultural sector accounts for an estimated 25% of the local economy and 45% of local employment, and is particularly dominate in rural and remote areas.

fertigation techniques were introduced to ensure water use efficiency during the propagation of seedlings under greenhouse conditions and in the area designated for cultivation by a local cluster of small scale farmers.

(5) Morocco: Expanding the Use of Traditional Methods of Farming Western Asia css.escwa.org.lb/ICTD/1441/2-1E.pdf css.escwa.org.lb/ICTD/1441/5-1E.pdf http://www.fao.org/ag/agl/agll/

Agriculture

Water technology

• In most areas, traditional custom sustains agricultural activities by defining inherited access rights based by one’s location with respect to the source of water, and by the amount of water that can be abstracted with traditional extraction techniques.

• To increase their water use efficiency, farmers also rely on traditional techniques for the capture of any overflow freshwater.

• Deployed on large scale, such techniques can help promote aquifer recharge, and therefore increase the total availability of freshwater supply.

• Farmers can further access this increased supply and use some of the better adapted modern technologies, such as centre-pivot irrigation and drip

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Region: Western Asia Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

drylands/index.htm ag.arizona.edu/oals/IALC/conference/Pres-pdf/brta1p1.pdf

irrigation.

(6) Palestine: Rooftop Farming for Water and Soil Conservation Western Asia css.escwa.org.lb/ICTD/1441/2-1E.pdf http://socserv.mcmaster.ca/kubursi/ebooks/water.htm http://electronicintifada.net/content/without-land-gaza-farmers-grow-crops-roofs/4873

Agriculture

Water technology

• In Palestine, the lack of land and water is a particular concern, particularly in the Gaza strip.

• An example is Beit Hanoun, where much agricultural land has been destroyed repeatedly by the Israeli army. There, farmers deprived adapted by developing rooftop farming to feed their families, and grow species that can be used year round.

• The soil used in those rooftop gardens is improved with foods scraps and other organic matter, which also acts as fertilizer and further improves productivity.

• The food grown on those rooftops is often rainfed, which further contributes to water saving in an arid area where most of the water is abstracted from an increasingly polluted groundwater.

• This “food close to fork” approach can also help support the raising rabbits and chickens, a valuable source of protein for a population that depends on aid for 80 % of its food supply.

• In this manner, the use of rooftop farming has allowed local farmers to leverage their traditional knowledge with new technologies and techniques, and may improve their competitive edge for the time where the current conflict situation has abated.

(7) Saudi Arabia: Leveraging Traditional Knowledge at King Abdullah University of Science and Technology (KAUST) Western Asia css.escwa.org.lb/ICTD/1441/2-1E.pdf http://www.kaust.edu.sa/about/sustainable/sustainable.html

Industry Water technology

• In Saudi Arabia, the KAUST campus situated on the western coast near Jeddah was designed to be environmentally friendly from its inception. Its design relied in part on the energy-efficient traditional design of Arab houses, and implemented new technologies of water metering and recycling.

• In an adaptation of traditional design, two solar towers create a passive pressure difference and continuous breeze along the shaded courtyards, thus making them comfortable more than 75 percent of the year, thus reducing total demand for air conditioning and water.

• Inside buildings, water use is reduced by about 40% as compared to baseline designs, due to the use of waterless urinals, ultra-low flow lavatories, and low-flow showers.

• Across campus, storm water management is such that groundwater infiltration is promoted, with 100% of average

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Region: Western Asia Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

annual rainfall runoff captured and treated.

• KAUST’s Waste Water Treatment Plant (WWTP) treats 100% of the wastewater generated by the campus, and the resulting output is recycled through Installed irrigation systems that reduce consumption by more than 50% of estimated needs, which are further reduced thanks to the use of thrifty native and adaptive vegetation.

(8) Saudi Arabia: Desalination using solar energy desalination at King Abdul-Aziz City for Science and Technology, Saudi Arabia Western Asia http://www.kacst.edu.sa/en/about/media/news/Pages/news49.aspx http://www.escwa.un.org/information/pubaction.asp?PubID=978

Industry Cities

Water technology

• Desalination using renewable energy resources in under study in various parts of the region in view of improving the sustainability of the water sector and ensure access to freshwater resources to meet basic needs over the long term.

• A national initiative for water desalination using solar energy has been launched at the King Abdul-Aziz City for Science and Technology, which is situated in the northern area of Riyadh.

• While this is expected that the use of solar energy will eventually substantially reduce production cost of desalinated water resources, it already has positive impacts on economic growth by creating opportunities for scientific research and development, technology transfer and investment in the water sector, which can in turn potentially develop into an export sector based on the manufacturing and development of plants and components for solar

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Region: Western Asia Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

desalination industry.

(9) The Syrian Arab Republic: The Importance of Rainfed Farming Western Asia css.escwa.org.lb/ICTD/1441/2-1E.pdf www.fao.org/world/syria/gcpita/pubs/policystudies/farming_system_tec_report/farming_system_tec_report_en_89-120.pdf

Agriculture

Water technology

• It remains necessary to continue to promote agriculture based on rainfed farming practices as essential to sustain livelihoods for small-scale farmers and communities that have already been internally displaced due to the unsustainable agricultural practices of the past.

• There have therefore been recent efforts to leverage traditional knowledge to help overcome some of the instability of rainfed farming, particularly in areas with relatively good annual rain fall.

• Those techniques include the construction of terraces over sloped terrain, or expanding the use of stone vegetative contours in gently sloping areas.

• An advantage of rainfed farming is that it remains an eco-friendly agricultural practice that does not increase burdens on water resources and that can help alleviate soil degradation and causes none of the problems of salinization that often result from irrigation farming.

• Both techniques can prevent soil erosion and increase water retention.

• Traditional techniques have been used to promote the use of vegetative cover along slopes or near the boundaries of rainfed fields.

• More ancient techniques have been rediscovered, such as ancient Qanats that collected runoff water from slopes and channel them to feed shallow groundwater and wells.

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Region: Latin America and the Carribbean Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

a) Case studies plenary session ECLAC

(1) Provision of water services and poverty alleviation through the programme ‘Water for Everyone’ in Peru LAC

Economic instruments and policies in water management

• Economic and policy instruments implemented in Peru

• The ‘sustainable drinking water tariff initiative’ carried out through the Latin American Association of Drinking Water Regulators (ADERASA)

• The most successful government programme ‘Water for Everyone’ for universal access to drinking water and sanitation

• New paradigm for sustainable regulation, integrating environmental and governability tools

The ‘Water for Everyone’ program as of December 2010 had benefitted more than 2.5 Peruvians

(2) Design and approval of the Multi-annual Sectoral Plan for Water and the Environment of the Republic of Guatemala LAC

Water planning

• Comprehensive national plan for 2011-2013 designed to provide a strategic path for the environment and water sector and improve organizational performance within the existing goods and services legal framework

• The plan is results-based rather than activities-based

• Details the actions needed to implement the Government’s strategies and policies for the sector

Design of the plan was overseen by 34 government institutions and 14 funding agencies in the environment and water sector

(3) Development and introduction of the new water charges in the Paraiba do Sul River Basin, Brazil LAC

Watershed

Cost recovery and financing of water and sanitation services

• A basin committee is composed of water users and representatives from Federal Government, state, municipalities and civil society

• Committee responsible for implementation of charging system – users must pay bulk-water charges and obtain a permit to use water from the state or federal agency

• Revenue from charges used for investments in environmental improvements

• Digital water permits system implemented and all users registered

• All users paying water charges

• Independent regulation of water use

• User-pays and polluter-pays principles

Water charges have enabled investment in a sewage treatment plan, benefitting thousands of people

• 1997 Water Law created a decentralized system with planning and management at river basin level and designed multi-level stakeholder participatory basin committees; defined water as a public good with economic value; created water pricing as a water management instrument

• 2000 ‘ANA’s Law’ established the federal National Water Agency whose technical expertise and decision-making autonomy was crucial to the implementation of the charging system

Page 33: Tool 1: Economic instruments and policies in water management · Economic instruments and policies in water management . The Caribbean Catastrophe Risk Insurance Facility (CCRIF)

Page 33 of 34

Region: Latin America and the Carribbean Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

b) Additional case studies market place and compendium

(4) The scope for greening Barbados' economy LAC

(5) Water and green jobs and the control of water pollution in Mexico LAC

Green jobs

(6) Investment in the management of water resources in the Metropolitan District of Quito, Ecuador LAC

Cities Water planning

(7) Prices that reflect the costs and benefits to the poor in Bogotá and Medellín, Colombia LAC

Cities Economic instruments and policies in water management

(8) Community water management in Central America as an environmental, economical and socially feasible choice LAC

(9) Creation and implementation of the Participatory Water Management Fund for Ocotal, Nicaragua LAC

Cost recovery and financing of water and sanitation services

(12) Creation and implementation of the Participatory Water Management Fund for Ocotal, Nicaragua LAC

Cost recovery and financing of water and sanitation services

(12) Creation and implementation of the Participatory Water Management Fund for Ocotal, Nicaragua LAC

Cost recovery and financing of water and sanitation services

(12) Creation and implementation of the Participatory Water Management Fund for Ocotal, Nicaragua LAC

(10) Public management of water in Colombia LAC

(11) Payment for environmental

Cost recovery

(8) Payment for environmental services,

Cost recovery and financing of water and

Page 34: Tool 1: Economic instruments and policies in water management · Economic instruments and policies in water management . The Caribbean Catastrophe Risk Insurance Facility (CCRIF)

Page 34 of 34

Region: Latin America and the Carribbean Case and region

Issue Type of tool

Description Economic impacts Benefits for the environment

Social /poverty alleviation impacts

Governance issues Scaling up and relevance for developing/ transition countries

Constraints

services, payment for water use, loans for projects related to the green economy, Brazil LAC

and financing of water and sanitation services; investments in the protection and improvement of biodiversity

payment for water use, loans for projects related to the green economy, Brazil LAC

sanitation services; investments in the protection and improvement of biodiversity