Circular Economy Solutions: A Multi- Stakeholder …...Circular Economy Solutions: A...
Transcript of Circular Economy Solutions: A Multi- Stakeholder …...Circular Economy Solutions: A...
Circular Economy Solutions: A Multi-
Stakeholder Approach
Rochi Khemka Global Partnerships Coordinator and Asia WRM Specialist 2030 Water Resources Group, World Bank Group May 22, 2018
About 2030 WRG
2008-2012 | World Economic Forum
Ideation, preparation and incubation
2012-2017 | International Finance Corporation
Demonstration
2018-2023 | World Bank Water Global Practice
Getting to scale
Mission Help countries achieve water security by 2030 by facilitating collective action on water between
government, the private sector, and civil society.
Overview of MSP Results
3
Analyze Convene Transform
Key Outputs:
• Hydro-Economic Analysis
• Targeted sector analysis
• Macro water challenges analysis
Key Outcomes:
• Demonstration projects
• Large-scale programs
• Policy reform
• Financing mechanisms
Key Impacts
• m3 freshwater abstraction avoided
• m3 untreated wastewater discharge
avoided
• m3 cost-effective water storage
• $ financing facilitated
2030 W
RG
Glo
bal
Partn
ers
2019
Multinational
companies
Bilateral donors
Development banks
INGOs and IGOs
Incubated within Hosted by
Par
tners
hip
pro
gress
in 2
018
11
61 PROGRAMS UNDER
IMPLEMENTATION
OPERATIONAL
MULTI-STAKEHOLDER
PLATFORMS
14 ENGAGEMENTS IN
COUNTRIES / STATES
ACTIVE PARTNERS IN STEERING BOARDS & WORKING GROUPS
Private | Public | Civil Society | Total
2014
2015
2016
2017
2018
101
121
212
293
308
47
74
123
131
154
29
102
170
218
284
177
297
505
642
746
2030 W
RG
Lead
ers
hip
A
reas
Promoting
circular
Economy
Transforming
value chains
Water security
and resilience
planning
• Improving water efficiency
within value chains, especially
in agriculture
• Using a combination of
solutions, e.g. infrastructure
development, local water
governance, and creating
market linkages
• Identifying PPP opportunities for
wastewater treatment and reuse
• Enhancing government spending
capabilities
• Bringing in best practices in
technology and financing
• Fostering collaborative action,
particularly by overcoming legal,
regulatory, and institutional
barriers
• Helping countries develop water
security and resilience planning
capabilities
• Supporting reforms in water
allocation regimes
• Integrating nature-based
solutions in water resources
management to support climate
adaptation
• Supporting private sector to
develop better water risk and
water stewardship practices
Exam
ple
s of Par
tners
– K
arnat
aka
Government
1. Chief Secretary, Government
of Karnataka (Chair of MSP)
2. Principal Secretary, Water
Resources
3. Principal Secretary, Finance
4. Principal Secretary, Urban
Development
5. Principal Secretary, Industries
and Commerce
6. Principal Secretary, Agriculture
Private Sector/ Industry
Associations
1. CEO, Volvo India (rep of
Confederation of Indian Industries
(CII))
2. Chairman & MD, BASF
(representative of WBCSD)
3. GM, Syndicate Bank (convener of
State Level Bankers Committee)
4. President, Federation of Karnataka
Chambers of Commerce and
Industry
5. Representative, Information
Technology Association
6. Representative, World Business
Council for Sustainable
Development
Civil Society
1. Chair, Asia Pacific Water Forum
(Co-Chair of MSP)
2. Arghyam Trust
3. KLE Technical University, Hubli
4. Center for Public Policy, Indian
Institute of Management
5. Indian Institute of Science
Karnataka MSP Steering Board
Steering Board Chaired by Chief Secretary,
senior-most bureaucrat
Meets every 3-4 months
Agri Water Efficiency
Workstream Chaired by Principal Secretary, Water
Resources
Drip Finance Task
Force
Drip-to-Market
Agro Corridor
Task Force
Wastewater
Reuse Policy Task
Force
Policy and
Incentives Task
Force
Industrial
Mapping Task
Force
Reuse
Resource
Center Task
Force
Urban Water Workstream Chaired by Additional Chief Secretary,
Urban Development
Industrial Water Work Stream Chaired by Additional Chief Secretary,
Industries and Commerce
MSP
Str
uct
ure
– K
arnat
aka, India
Program Examples
Ganga: Paradigm shift towards sustainable PPP-based wastewater
treatment
First 3 PPP concessions signed for Mathura,
Varanasi and Haridwar
Complementary efforts of the World Bank Group unlocked first
PPPs for wastewater treatment in the Ganga
• $1 billion ongoing loan
• Technical assistance on policy and regulatory framework for environmental management
• PPP policy framework
• Pilot PPP project preparation
• Private sector and civil society engagement for PPP structuring
• Institutional arrangements
• M&E framework
• PPP Transaction advisory and project structuring for first 3 towns
• PPP advisory for rollout in additional towns
• The Ganga Basin is home to 450 million people
• An estimated 3 billion liters of untreated wastewater flow into the Ganga daily
• Government of India approved Namami Gange program in 2015 for rejuvenation, protection and
clean-up of the River Ganga, with a budget allocation of $3 billion
World Bank
2030 WRG
IFC
Additional PPPs
developed by
government on same model
Outcomes and
Impacts
Ganga
Basin
Hybrid Annuity Model
• Concessionaire to mobilize 100% investment of which 40% reimbursed during construction and upon commissioning
• 60% of remaining capex paid in annuities during the concession period, along with O&M expenditure
• Payment security by setting up of a separate account
Ganga PPPs Transaction Structure
PROJECT SPV
(Selected Bidder) Term Loan/ WC
NMCG
BANKERS /FIs
Design, build, finance, operate,
maintain and transfer
Escrow Account
Appointed by
NMCG
JAL NIGAM
Land and ROW
Project Engineer Wastewater Treatment
Plant(s)
Review and construction
supervision, monitoring of KPIs
Tripartite agreement to be executed between the Jal Nigam, NMCG and the identified private developer
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Bangladesh
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Challenge: • Toxic industrial wastewater discharge polluting waterbodies & food chain
• Inefficient industrial processes resulting in GW decline
• Lack of industrial wastewater treatment hindrance for export growth (particularly textile)
• 100 Economic Zones to be developed in the next few years possess enormous challenge to water
security
The work-stream is focusing on: • Industrial Wastewater Treatment and Re-use in Economic Zones
• Policy and institutional strengthening of Bangladesh Economic Zones Authority (CETP FMU* setup)
• Promoting PPPs in CETP implementation
• Exploring Special Purpose Vehicle (SPV) and Guarantee Fund setup with IFC
• Groundwater availability study for industrial clusters around Dhaka City
Impacts: First PPP launched, estimated to reduce untreated wastewater discharge by ~40
million m3 and reduce freshwater abstraction by ~35 million m3
PPPs for Central Effluent Treatment
Plants (CETP) in Economic Zones In
dust
rial
Was
tew
ater
* Central Effluent Treatment Plant (Facilitation and Monitoring Unit)
Legal Reform to introduce Polluter Pays Principles Mongolia
Protection of Mongolian water resources from contamination
Those discharging polluted water must apply for permission
(Discharge Permit)
All discharging polluted water must pay two fees:
Water Pollution Fee, if discharge meets standards
Water Pollution Compensation Fee, if discharge exceeds standards
Pollution Fee and Compensation embed costs of contaminating
water from its natural (fresh) state
Amendments to the Water Pollution Fee Law intended to
facilitate implementation of Law
Government Priority:
Provisions of Mongolian Water Law:
Mongolia Principles for Fixing Pollution Fee and Compensation
Fee and Compensation to follow Polluter Pays Principle
There is limited laboratory capacity in Mongolia
There is limited administrative capacity
Method for estimating extent of pollution to be simple and implementable:
By remedial action through on-site treatment facility
Focus on incentivizing large polluters (industry) to mitigate extent of water contamination
Every industry unit pays pollution compensation at a rate as per pollution caused
Maximum pollution caused by effluent discharge by industry in UB
44 large units discharge 76% of wastewater Mongolia
Industry
Analysis
High polluters
Most of the industry segments having large dischargers are also highly polluting (i.e., have high pollution load)
Spirits, Vodka, Wool and Cashmere, Tanneries
On-site treatment
Such large units can afford own treatment plants
Higher Pollution Fee & Compensation rates to incentivize treatment
Up to 76% of the wastewater may be treated before discharge to sewers
Small polluters
• Small, but polluting, units will bear high rate, but impact will be small
Mongolia - National Standards for Treated Wastewater Reuse
• 2030 WRG supported standards for treated wastewater reuse based on
private sector demand for reuse
• Guiding principle : Treatment level for reuse depends on the end use
• Ensures cost-effective wastewater treatment and fit-for-purpose reuse
• Standards developed through an iterative process:
I. Review of standards in Mongolia and internationally
II. Stakeholder discussions, including Ministry of Environment, large
industrial units, industrial associations and civil society
III. Identification of quality parameters relevant for industrial wastewater
IV. Appropriate standards development for different reuse applications
• Standard officially approved for implementation by:
• Mongolian Technical Committee of Environmental Standards (June 15,
2018)
• Mongolian National Technical Committee on Standardization (June 21,
2018)
• Reuse of municipal wastewater • Efficient resource use • Environmental protection • Water scarcity reduction • Economic output promotion
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Karnataka Urban Wastewater Reuse Policy Enabling environment improvements for reuse of treated municipal
wastewater
Overall Goals
Coverage Principles
All Class I and Class II urban
centers in Karnataka
At least 10 major
cities/towns adopt
wastewater reuse by 2020
(a) Equity and fairness
(b) Sustainability of operations of
the wastewater treatment plant
Karnataka
Wastewater
Reuse Policy
Industrial estates/ zones within [30 km] of a sewage treatment plant (STP) mandatorily examine, as a first option,
available secondary treated wastewater (STW) from the STP;
Reuse of not less than 20% STW is targeted, as a combined average across sectors, by 2020;
Tariff proposed (in Rs/KL) is applicable at the plant gate, or at in-city locations en-route of the sewerage network.
Off-taker is responsible for meeting additional cost of conveyance to a specified location;
Industry to bear cost of tertiary treatment, if required
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Wastewater Reuse – Resource Center
Facilitation of pre-feasibility for wastewater reuse
• Target: ULBs; potential offtakers of treated wastewater
Business/ environmental case
Models for project development and execution
Cost-effective options
Awareness and Capacity Building
• Assistance to ULBs to liaise with wastewater reuse customers
Integrated Urban Water Resources Management plans
Viable wastewater reuse projects
Project structuring
Outreach and engagement with off-takers
Transaction support
Tariff setting
Monitoring implementation of wastewater reuse projects
Project Assistance
Projects Kudgi/ Bijapur: 2030WRG-financed pre-feasibility by Tata Capital Cleantech Limited for offtake
of Bijapur wastewater by NTPC
3 towns pre-feasibility to be undertaken by KUWSDB Resource Center
Karnataka
Wastewater
Reuse Policy
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Thank you
Rochi Khemka Global Partnerships Coordinator and Asia Water Resources Specialist, 2030 WRG