ACWUA 2 nd International Conference and Exhibition

New Prospects and Challenges for the Water Sector in the Arab Region

January 27 - 29, 2013 Amman, Jordan “Engineering Projects in the Water Sector: a Low Carbon Development Perspective”

Jihad Abu Jamous / Shada El-Sharif – Arabtech Jardaneh Theme 3: Water Science for Policy and Governance Beyond MDGs: Water Resources and the Green Economy Paradigm

CLIMATE CHANGE? ENGINEERING?

“Climate change is a complex problem, which, although environmental in nature, has consequences for all spheres of existence on our planet. It either impacts on-- or is impacted by-- global issues, including poverty, economic development, population growth, sustainable development and resource management. It is not surprising, then, that solutions come from all disciplines and fields of research and development” , United Nations Framework Convention for Climate Change (UNFCCC)

OUTLINE

       Trends in Low Carbon Development (Global, Regional) Green Economy & the Water Sector: Jordanian perspective New drivers for engineering projects NAMAs as a CC Project Framework Evolving Team Structures Case study: Jordan NAMA project Opportunities for the water sector

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CLIMATE CHANGE & GLOBAL MILESTONES: RIO – JUNE 2012

RIO + 20 UN Conference on Sustainable Development. Key themes: Green Economy, Sustainable Development, Poverty Eradication, Institutional Frameworks Biggest UN Conference ever held, over 188 counties and 100 heads of state represented More than $513 billion in commitments for SD in energy, transport, green economy, disaster reduction, desertification, water, forests and agriculture 692 voluntary commitments for SD by governments, businesses, NGOs and academia

RIO – JUNE 2012

“We emphasize that green economy should contribute to eradicating poverty as well as sustained economic growth, enhancing social inclusion, improving human welfare and creating opportunities for employment and decent work for all, while maintaining the healthy functioning of the Earth’s ecosystems” Draft Resolution – RIO+20

CC & RECENT GLOBAL MILESTONES: COP 18 DOHA- DEC. 2012

• •  Keeps the Kyoto Protocol alive Launches a new commitment period (only countries who commit can use CDM/JI process) Reviews the commitment in 2014 •  Establishes a timetable and milestone for 2015 Agreement Continuous the efforts to raise the level of ambition to close the mitigation gap (more global commitment needed for GHG reduction)

CC & RECENT GLOBAL MILESTONES: COP 18 DOHA- DEC. 2012

• •  Long term financing: Fast Start Financing to reach US$100bn by 2020 $8.5bn in new financing pledged (UK, Germany, France, Denmark, Sweden and EU Commission) •  Green Climate Fund (GCF): Confirming Songdo, South Korea, to host GCF

CC: OTHER MILESTONES

 Copenhagen Accord: endorsed by 141 parties (2009), but not binding  Key elements formalized as UN decision in 2010 Cancun Agreements  Cancun Agreements: CC as global challenge, global warming should not exceed 2 Framework o C; Low Emissions Development Strategy (LEDS); Adaptation

REGIONAL CONTEXT

International organizations active in CC initiatives in MENA:

        European Neighbourhood Partnership Instrument(ENPI); Clima South (knowledge sharing, capacity building, policy) EU-UNDP Low Emission Capacity Building Program (LECBP) Mediterranean Strategy for Sustainable Development (UNEP/MAP) UNEP-Sustainable Buildings and Construction Initiative (SBCI) – FIDIC AFED Green Economy Report for the Arab World - 2011 Arab Sustainability Leadership Group (ASLG) – Queen Rania Initiative World Future energy Summit 2013 (annual) - Masdar Growing number of policies / strategies by countries of the region (e.g. National Energy Efficiency Action Plans)

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JORDAN CONTEXT: THE OPPORTUNITIES

Adaptation frameworks (health, water, energy, agriculture, education)  UN and line ministries Mitigation actions (Kyoto, GHG reporting, active MoE, CDM, preliminary NAMA list) NEEDs: proposed financing for adaptation projects in water sector & other mitigation projects Strong technical capabilities (> 100,000 engineers, 1:83) Green Economy Study; RE and EE Law; new building and plumbing codes; W/E strategy Organizations with a “green” agenda: the Jordan Green Building Council, Jordan Engineers Association, A/E Business Council, Royal Scientific Society, ministries Numerous donor funded programs (EU, USAID, AFD, WB, KfW, GIZ ...etc) Samra STP: case study for smart energy concept / CDM potential / successful PPP

EVOLVING PROJECT CONSIDERATIONS

• • • • • • • •  Climate Change Adaptation driven projects: Coastal engineering (sea level rise) Watershed management / flood assessments (flood risk) Water resource management (changing T, R) Emergency response systems (natural disasters) Healthcare facilities (health risks) Sustainable design in building and infrastructure (adaptation to dwindling resources) Water demand management / new supplies, water loss reduction, wastewater reuse (e.g. Jordan water strategy) Most vulnerable countries (ME: water scarcity, climate sensitive agriculture, coastal populations, conflicts)

EVOLVING PROJECT CONSIDERATIONS

• • • • • • •  Climate Change Mitigation driven projects: Energy efficient design (reduce fossil fuel consumption / GHG emissions) Renewable energy projects (clean energy: solar, wind, biomass)  e.g. Samra biogas/hydropower aspects Sustainable infrastructure (public transportation, energy efficient water pumping) Landfill gas capture and energy production Agriculture and forests Carbon Storage and Sequestration Fuel switch projects

THE OVERLAP: NATIONAL PRIORITIES / CC CONTEXT

National Priorities Climate Change Adaptation / Mitigation

NAMAS: AS CC PROJECT CONTEXT

 Nationally Appropriate Mitigation Actions: • Originated from the Bali Action Plan in 2007, supported in COP17 2011 • Nationally appropriate mitigation actions by developing country parties in the context of SD, supported and enabled by technology, financing and capacity building in a measureable, reportable and verifiable manner (MRV) Support seeking NAMAs NAMA Registry International Support • Flexible concept, can be laws , policies, projects  countries can lead in shaping them

NAMA MAJOR OBJECTIVES

Source: NAMA project Consultant team

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CASE STUDY: JORDAN NAMA

   Jordan among the first countries globally to submit a preliminary list of NAMAs to UNFCCC secretariat GoJ requested technical and financial assistance in further developing and prioritizing its NAMAs World Bank / PPIAF funded technical assistance project Long list of NAMAs  short list Focus on key infrastructure sectors (water, waste, energy transport) Potential for private sector participation (PSP) Green House Gas reduction potential Alignment with national priories Scalability / relplicability in Jordan and the region Climate finance potential Pre-feasibility for pilot NAMA

JORDAN CONTEXT: THE CHALLENGES

• • • • •   6.5 million growing population (transient populations) Resource poor / developing economy: Water scarcity Frail state of energy security Weak public transportation system Overstretched waste management systems (strategy needed) Rising utility prices

PROJECT KEY PLAYERS

Project Direction / Funding

World Bank / Carbon Finance Assist

Beneficiary: Government of Jordan

Focal Point: Ministry of Environment

Consultant Team

PPIAF (Public Private Infrastructure Advisory Facility) Public Sector (Infrastructure) Private Sector (PSP, Banks) Banking / Financial Climate Change and PPP Experts Technical / Engineering Legal / Policy

EVOLVING TEAM STRUCTURES

Multidisciplinary

• Engineers (transport, waste, energy, water) • Legal / policy • Economists / bankers • PPP expertise • Climate change • Capacity building

Multi-cultural / lingual

• Lead consultants: SDA (Argentine) and URS (UK) • Consultants on the ground: AJ (Jordan) and Eversheds (Jordan) • Developing / developed country experience

Multistakeholder

• Private Sector • Public Sector (Ministry of Environment / other ministries) • Project proponent

KEY PROJECT COMPONENTS

Literature Review (national communications, sectoral analysis, int’l context) Data Collection / Analysis for NAMA long list (matrix, questionnaire, interviews) / regulatory overview First short list: size, policy, replicability, GHG potential, Climate Finance, PSP, national priority First regional workshop: participatory approach to identify pilot NAMA  IWWTP Pre-feasibility study for selected NAMA (technical and financial analysis)  Final Workshop

JORDAN NAMA: PROJECT LANDSCAPE

Final Long list •20 projects •Minus CDM Long List: •51 projects •CDM included •4 sectors Short List: 5 projects

Selection of Pilot NAMA: Industrial Wastewater Treatment Plant

Source: NAMA project Consultant team

IWWTP DESIGN APPROACH: PILOT NAMA CONTEXT

• • • • • • • • • • Water conservation / ww reuse Energy efficiency / minimize GHG emissions Environmental protection and social considerations Minimize sludge and maximize biogas Revenue streams (water and energy sales) Public and private sector interests Climate finance potential Sound technical design: 4 waste streams corresponding to effluent types, three stage treatment  more adaptable Finance mix: industries, banks, public (land), carbon finance Regulatory / policy framework

TYPICAL IWWTP DESIGN APPROACH

• • • • • • • • Typically led by the public sector Technical approach: mix different wastes in single process Minimal treatment standard (reuse not always considered) Sludge disposal Business potential / private sector participation not explored Minimal environmental compliance Social / climate change adaptation / mitigation rarely considered More technically focussed; minimal consideration for issues of climate change, economy, private sector participation

EVOLVING PROJECT CONSIDERATIONS

Wastewater Collection • Quantity • Quality • Cost Treatment Process • Stages • Streams • Phys / chem / biological • Cost Treated WW • Disposal • Reuse • Sludge • Cost • • WW Collection fees • Potential private sector stakeholders Environmental and social value • Project company / • investment opportunity Technical / Economic considerations of • treatment process Capture resources (biogas, sludge, heat) • • Sales of TSE Compost sales • Energy sales (biogas) • Biodiesel?

• Environmental and social value • Policy and legal framework (PPPs, water & environmental laws, wastewater standards) • Climate finance potential (CDM, GCF, Env Fund – policy/ project level) • Public private interface (strong national procurement: output based / SD considered) • Framework for replicability • Feasibility

BARRIERS AND OPPORTUNITIES FOR CONSULTING ENGINEERS

Business opportunities: new markets / countries / funds Role in green growth Unfamiliar concepts Lack of multidisciplinary / multi cultural experience

Learning curve

OPPORTUNITIES FOR THE WATER SECTOR

 Utilities and water companies can make use of growing international support for “green projects” in developing partnerships and accessing additional sources of finance   FIDIC defines Sustainable Infrastructure as that which is able to “deliver its service over its lifetime, efficiently and reliably, and it needs to be adaptable and resilient to change and shock” • • • • • Projects that consider sustainability from inception  end of life: Minimal reliance on non-renewable resources Maximum benefit to the environment and society Achieve economic prosperity Ensure stakeholder buy-in Have a long useful life Improved Project Performance and Durability

RECOMMENDATIONS

  Capacity building for the public and private sector on global / regional climate change developments and implications on emerging engineering project frameworks (focus on water sector)  Facilitate cross-cultural/ regional collaboration and networking (CC and Water are cross-border issues) Climate change driven projects are complex and have country / region – specific considerations  innovations are needed. Approaches like NAMAs are great opportunities for innovation and finding “appropriate” solutions for each context