Water management innovation in China

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NON ‐ P RO F I T ∙ I N DU S T R I A L

Water Management Innovat ion in ChinaS O C I A L I N N O V A T I O N P L A Y B O O K S E R I E S

“If water and sanitation are central and you fix it, then the rest of the eco development happens on their own – good education, good health and citizens who go to work. It’s kind of a virtuous cycle that flows on its own and water and sanitation is the central key to unlock that potential. Leaders have to make that choice to do something about it, because it is a huge challenge.”

Professor Seetharam KallidaikurichiDirector, Institute of Water Policy, LKY School of Public Policy

Water & Sanitation are central to sustainable development

2edenstrategyinstitute.com

WatSan shortfalls will inhibit China’s long‐term economic growth

Provinces in China

Provinces experiencing water shortage

“2/3 of Chinese cities are short of water”

Chen Lei, Minister for Water Resources

FUJIAN

GUANGDONGGUANGXI

ZHEJIANG

SHANGHAI

JIANGSU

ANHUI

JIANGXIHUNAN

HUBEI

HENAN

GUIZHOU

CHONGQING

SICHUAN

YUNNAN

QINGHAI

XINJIANG

XIZANG(TIBET)

NINGXIA

NEIMONGOL

(INNER MONGOLIA)

HEBEI

BEIJINGTIANJIN

LIAONING

JILIN

HEILONGJIANG

GANSUSHAANXI

SHANXI SHANDONG

0

0

500 Kilometers

500 Miles

Beijing

Harbin

Changchun

Shenyang

Dalian

YantaiJinan

NanjingHefei

Zhengzhou

NanchangWuhan

Fuzhou

Xiamen

Changsha

Hong KongGuangzhou

Macau

ZhanjiangHaikou

Nanning

Guiyang

Chongqing

Chengdu

Xi'anLanzhou

XiningGolmud

Lhasa

Shiquanhe

Yumen

Karamay

UrumqiYining

Kashi

Yinchuan

Hohhot

Taiyuan

Tianjin

Shijiazhuang

Kunming

Hangzhou

Shanghai

OiqiharHailar

South ChinaSea

East ChinaSea

YellowSea

YANGTZE RIVER

709,000 ha farmland impacted; 120,000 ha of crops unharvestable

2.5m people lack drinking water

Worst drought in 60 years

353,000 people suffering from water shortage

2m people short of drinking water; 80% of farmland affected by drought


… with per capita water resources at 28% of the global average

100m cu. m China: Water demand and supply

6% China’s share of global freshwater resources

China’s share of world population

20m China’s population with no sanitation access

20%


Immense upside in water efficiency exists in its agricultural sector

100m cu. m China: Competing uses of water


Engage key stakeholders.Governments, conservationists, financiers, farmers, food processing, factories, technology providers

Understand water economics. Reflecting true cost of reliable, potable water; calculating water footprint; matching quality‐adjusted supply with demand; identifying water stressors

Regulatory reform.Water rights, tariffs, quotas, pricing, standards

Ensuring supply.Reverse osmosis; Aquifer recharge; Water source protection; river linking projects; dam & reservoir; rainwater harvesting

Transportation efficiency. Closed irrigation to reduce transportation losses; canal lining; leakage detection; footpumps

Consumption productivity.Dry cooling / lubrication; contouring; rain‐fed crops; soil moisture monitoring; irrigation scheduling; microsprayers; drip irrigation; mulching; smart meters; retrofiting taps/ showerheads, dishwashers, dual flush toilets

Wastewater reuse. Purposes of gray‐water purposes (e.g. industrial processes), biotreatment, quality of industrial effluent

Financing. Determine cost benefit of water sustainability investments & new financing models (e.g. microfinancing)

$

.. if good practices for water sustainability are adopted


Two major WatSan trends are shaping stakeholder expectations

1. Shift from subsidy‐driven to market‐driven approaches

• 10‐30bil of investments needed annually to meet Millennium Development Goals

• Shift emphasis from giving direct aid to creating watsan markets, thereby reducing the need for never‐ending subsidies.

2. Increasing focus on governance issues

• Water problems are more management‐related and not supply‐related• Global water shortages can be solved with existing knowledge, technology,

policies, and good practices


Case study

Even NGOs need to articulate a clear vision

• Took 5 years to develop a set of standard program metrics

• Transformational Development Indicators (TDI) 2010 Frame provides credible, standardized impact data

• TDI now used:

• To develop and monitor national strategies and plans

• For advocacy

• For marketing

• Also launched global exercise to craft new vision

• Working group only formed in 1997 after WorldVision was in existence for 50 years


AdvocateLobby decision makers to make policy improvements to address systemic issues

… to decide on possible roles in the murky WatSan ecosystem

ImplementerExecute field programs

CatalystBroker exchanges among various stakeholders to unleash bottlenecks and bridge gaps

Grant MakerChannel funds from donors to beneficiaries

Capacity BuildingManagement & Technical skills

Toilet 2.0


TechnologyInnovation & Transfer

FinancingAccess to Capital

VALUE CREATION

OPERATIONAL CAPACITY

LEGITIMACY & SUPPORT

Stakeholder analysis to engage right partners

Market analysis to identify social need

Competency analysis to define core competencies

… so as to ensure performance against a systematic mission roadmap

Sweet Spot



1. To what extent are our business operationsdependent on reliable sources of clean waterin the territories where we operate?

2. What is the true cost of our water footprint?

3. Who are our stakeholders as far as our watersecurity is concerned, and what forms ofpartnerships can we consider?

4. Do we need to lobby for regulatory reform?

5. What are the long‐term stressors to ourwater supplies?

6. Can technologies to optimizing our waterusage be a source of competitive advantagefor us?

7. How should we think about making capitalinvestments when innovating for watermanagement?

Questions to consider


What we do. Eden Strategy Institute approaches the global issues of disease, poverty, illiteracy, and exploitation head‐on, by formulating strategies, models, processes, products, and designs that help our clients create, realize, and sustain quantum profit in addressing these issues. We focus exclusively on empowering business strategies with Social Innovations that create enduring financial impact, such as Silver Hair Marketing, identifying Bottom‐of‐Pyramid segments, creating Ethical Supply Chains, Microfinancing, Energy Efficiency, Socially Responsible Investing, Policy Planning and Advocacy, and so on.

Eden’s Non‐Profit & Industrial Practices. Eden has experience spanning the entire Non‐Profit value chain, from advocacy and capacity building, to fundraising and implementation. We help organizations in the Industrial sector grow their scale, improve their operational efficacy, build distribution hubs, manage their trading networks, plan for compressed capital equipment cycles, and defend against grey markets. We have an extensive network of contacts with the entire non‐profit ecosystem across Asia‐Pacific, including fundraisers, corporate donors, government agencies, multilateral organizations, NGOs, and charities. We also have extensive knowledge of Heavy Industrial Equipment, Precision Engineering, and Control System Technology; Logistics services and Transportation infrastructure; Resources, Materials, and Waste Management; as well as Responsible Manufacturing Processes and Packaging Design

Sustainability expertise. Eden brings sustainability to the Non‐Profit sector by supporting public sector organizations in their journey to better serve the changing needs of their constituents, by importing private sector practices such as competitive strategy, innovation, and performance management. We regularly advise on policy reform and help governments plan and set up industry blueprints and ecosystems, urbanize communities with infrastructure development, correct market failures, allocate resources, accelerate trade and development programs, advocate causes and lobby for regulatory approvals, make grants and raise funds, drive for results, and forecast the economic and social impact of governmental and non‐profit interventions.

Our philosophy. We believe in the power of ideas to positively shape our world, one client at a time. Our focus is unparalleled in bringing to bear our entire senior management team, as well as the world’s foremost experts, on our clients’ most pressingsustainability issues. In turn, we elect to only collaborate with clients who are seriously committed to creating value together.

Asia’s leader in Social Innovation ConsultingABOUT EDEN STRATEGY INSTITUTE


Enquiries: Calvin Chu, PartnerE: [email protected]: +65 9751 5817

64B Pagoda StreetSingapore 059223

www.edenstrategyinstitute.com

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Water management innovation in China

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