integrated approach for achieving water use efficiency – global experience
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WORLD BANKTRANSCRIPT
9 April 2013
Integrated Approach for Achieving Water Use Efficiency – Global Experience
Mohan SeneviratnePrincipal Industry Specialist, Water EfficiencyClimate Business Group
IFC is the largest multilateral development bank focused solely on the private sector.
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Part of the World Bank Group and profitable since 1956. We invest, advise, mobilize capital and manage assets.
Investment services:$56.5 Billion portfolio$15.4 Billion new commitments in FY1211% Climate investments in FY12
Advisory services:$200 Million expenditure
16% Climate related expenditure
IFC Asset ManagementCompany$4.5 Billion under management
More than half of IFC’s 3,438 staff work in 100 field
offices in 95 countries .2012 highlights
While climate change may be the single biggest environmental challenge of the coming decades, its effects on business will mostly manifest themselves via water.
Problem of water is expressed in 3 words – Scarce, Cheap, Wasted.
EIRIS analysis shows that 54% of companies are exposed to water risks. However, less than 1% can currently demonstrate that they are adequately managing these risks.
– EIRIS Water Risk Report 2011
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Case Study - Sydney
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2004 2009
Warragamba Dam Sydney Inflows
Actual water usage is now equal to 1950s consumption despite the population increase
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NB: Per capita consumption includes residential and non residential water use expressed as L/person/d
309309
364364329329
2005 2011
L/C
apita
/dSydney Water operating licence targets
-28%-28%
-35%-35%
5065061991 demand1991 demand
2010
L/C/d – includes both residential and non-residential use
-39%-39%
How the Savings were achieved Demand Management
Residential water efficiency – 3 star shower heads, tap flow regulators, Do it-yourself kits, toilet replacement, washing machine rebates
Every Drop Counts Business Program - industrial, commercial and government water efficiency – water audits, Best Practice Guidelines, management diagnostics, target large and small users, Benchmarks.
Loss reduction – Leakage management, pressure management
Regulatory Water efficient labeling and standards scheme (WELS) Water efficiency management plans – 20% reduction target for large business users >
50 ML/y Urban planning regulation – The Building Sustainability Index (BASIX) Water restrictions Pricing Alternative Supply sources – recycling and dam transfers
Community outreach – industry, govt, business and financial intermediaries
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NB: 250 Ml/d Desalinaton plant started only in 2010 and didn’t influence the water savings
Cumulative Water Savings
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Residential 17,262 ML
Business Program24,663 ML/
LeakageReduction29,551 ML
Recycled water12,416 ML
Regulatory measures32, 811ML
Levelised cost $/kL comparison(∑PV(Capital +Operating cost)/∑ water))
•
Water price$1.75/kL
$1.88/kL
Business water conservation (24,336 kL/d)
Pressure Management (5, 844 kL/d)$0.93/kL
BASIX , WELS$0.0/kL
Wollongong recycled water scheme (7,300 ML/y)
$0.24/kL
$0.56/kL
Reducing potable water use at Bondi STP (280 ML/y)$1.09/kL
Residential water use efficiency (>5 ML/d)
Desalination (125 ML/d)
Rain water tanks
$5.60/kL
$2.50kL
$3.00/kL
Requires Non-financial Reasons for justificationof investment
$0.30/kL
Active leak detection (21,900 ML/y)
$0.60/kL
Recycled water projects (280 ML/y)
Water Usage per sector per capita for selected countries
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0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
United
Kingdo
m
South
Africa
Brazil
Indon
esia
China
Netherl
ands
Russia
n Fed
eratio
n
New Z
ealan
d
German
yInd
ia
Japa
n
Mexico
Iran,
Islam
ic Rep o
f
Pakist
an
Austra
lia
Canad
a
United
States o
f Ameri
ca
kL/p
erso
n/ye
ar
Domestic Agriculture Industrial
Gross value added per GL of water used
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2001 2004/05 2000/01 2004/05 2000/01 2004/05
Agriculture 23,206 24,344 14,989 12,191 1.5 2
Mining 63,691 64,223 321 425 198.4 155.5
Manufacturing 94,474 99,688 549 589 172.1 169.2
Electricity supply and gas
13,870 14,444 255 271 54.4 53.3
Water supply 7,724 7,407 2,165 2,083 3.6 3.6
Other industries 617,593 729,585 11,146 1,110 538.9 657.3
Total 820,558 939,692 19,425 16,657 968.9 1040.9
Gross value added (GVA) per GL of water used
$M
Sector Industry Gross value
$M
Water consumption
GL
Current Water Scarcity and location of chemical plants
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Indian Chemicals Sector (3% of the global sector)• Basic chemicals accounts for 53% of
market. Petrochemicals is the largest segment with olefins demand set to grow at 10% of the market and aromatics at 12% of the market over the next 4 – 5 yrs.
• India is soon expected to be among the 4 – 5 manufacturers of petrochemicals in the world.
• Methanol, formaldehyde, acetic acid and phenol account for 2/3 of production of basic chemicals.
• Pharmaceuticals – India is the number three manufacturer with revenue of $19 Billion.
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Forecast Growth rate at 11% by 2017 the Chemical industry would reach US$224 billion (Planning Commission)
Current Refining Capacity
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21 Refineries
India has 21 refineries with a capacity of 4.0 billion barrels/d.(187 million t per annum) and Most of them are located in coastal areas. 17 of the refineries owned by the State sector Opportunities and ChalllengesMargin improvementEnergy Efficiiency and Environmental performanceWater scarcity, govt. zero discharge regulations and high price of water will increase demand for desalination and wastewater reuse.
Water Stress in India will hamper dairy production growth in the largest producer in the world
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Brown - Regions prone to drought
Green -Unsustainable demand –high stress
5 States out of top ten are under water stressWhich will impact dairy production
India – Largest milk producer in the world. Accounts for 15% of global production and growing demand, large population means organized market to increase from 30 to 65%. Milk (cow and buffalo) production to be 118 bn Litres in 2012 – 4% y-o-y rise.
Alignment with SBA strategy in increasing farmer productivity
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Strategy Pillars
South Asia Water Strategy OverviewWater Strategy aims at 500 million cubic meter of water savings; 500,000 farmers reached
and 5 million people reached through water supply En
ablin
g Env
ironm
ent f
or P
rivat
e
Sect
or P
artic
ipati
on
1
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Rice, cotton, sugar, wheat, soya (balanced cropping systems)
Chemicals, textiles, dairy1
Tier-II and III cities/ towns (primary focus); decentralized/ rural water (secondary focus)
Priority Areas
1 While chemicals, textiles and dairy are priority sectors, ongoing engagement with Tata includes advisory for Tata Steel, Tata Motors and Tata Power also
Policy –. National Water Resources Framework
study in partnership with WRG
Investments – Agri water efficiency - Jain Irrigation Access to water – Water Health International, Utility - Vishwa Infrastructure - Khandwa Water
Supply project and Kholapur STP BOOT Project
Manufacturing – Many industries – Dairy, Chemicals.
Advisory – Tata Industrial Water Footprinting Rice – Access to water efficient technologies –
laser levelling and direct seeded rice. – 6.3 million m3of water savings.
Cotton – Working with IKEA and C&A in Maharastra and Gujarat.
Alwar, Rajahstan – Engagement with SAB Miller
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IFC Water Sector Investments and Advisory Projects in India
