21 September 2022 Module II - - PowerPoint Presentation

1. 21 September 2022Module II - Institutions, processes and tools for institutionalizing the WEF NexusIn cooperation with

2. Let’s get back to Ms. Sinclair…

3. Chapter 2.1:Assessing the Nexus – Assessment tools for decision supportWEF Nexus context analysesAssessing impacts of changesAssessment of specific Nexus interventionsInteractive Exercise: selecting Nexus indicatorsChapter 2.2:Governing the NexusHorizontal and vertical policy coordination Case studies policy coordinationPolicy instruments to incentivize resource efficiencyInteractive exercise: policy analysisChapter 2.3: Cross-sectoral investment planning and financingIntroduction and definitionsDemonstrating the economic added value of Nexus solutionsMobilizing finance to implement Nexus solutionsInteractive exercise: pitching your Nexus projectOutline

4. Chapter 2.2: Governing the NexusHorizontal and vertical policy coordination

5. In the absence of coordination 55AgricultureWater EnvironmentEnergyDecision made to use solar-power pumps for groundwater abstraction to improve and extend agricultural productionNo consultation with other sectorsIncreasing amounts of water abstractedWater supply for drinking and sanitation decrease  (amplified by drought period)Water pollution increasesWater sector reverts to use of surface water resources (causing additional costs)Abstraction is happening upstream of major hydropower damsSinking water levels in damsDecreasing electricity productionTrade-offsExternalitiesConflict

6. To manage WEF nexus sectors requires horizontal & vertical coordination in order to:avoid or at least mitigate the mentioned negative effects that one sector can cause upon othersidentify synergies and coordinate with other sectors to harness these reduce costsmake policies more coherentprovide frameworks for resolving potential conflicts Objectives of coordination 6

7. Sectoral organization of administrative systems 7Nexus governance requires horizontal coordination between sectors

8. A WEF Nexus approach requires political coordination in two different dimensions: Horizontal coordination between different sectorsVertical coordination between different levelsCoordination across sectors and administrative levels 8LevelverticalhorizontalWaterEnergyFoodSource: Figure based on Jänicke, 2013RegionalNationalState/provincialMunicipal/localSector

9. What instruments and mechanisms for realizing horizontal policy coordination do you know of and/or are you aware of in your own regional context? Time for some reflection!9

10. WEF Nexus coordination process10Absence of coordination Negative coordination Positive coordination Strategic coordinationDecisions made in one sector/levelNo coordination with other sectors/levelDecision made in one sector/levelInforming/consul-ting other sectors to avoid conflict Seek to find joint solutions that benefit all sectors/levelsRequires more intensive coordination/ cooperationComprehensive approach – coordination to achieve joint strategic policy goalsInvolvement of different sectoral actors from the beginning Trade-offsExternalitiesconflict Minimizing/ avoiding trade-offs & conflictsUsing synergies

11. Type I: Horizontal coordination for WEF governance11

12. Type II: Vertical coordination for WEF nexusCoordination between different levels of governance is realised through different institutional instruments. For example, through: Dialogue processes and consultationsConferences of national and regional ministries (often along sectoral lines)Working groups between local-regional-national government levels12Provincial GovernmentCity/MunicipalityPublicBusinessesDistrictNational GovernmentVertical coordination between policy levels / actorsSource: GIZ, 2017

13. Consultation mechanisms in Germany: Advisory boards and expert hearingsAdvisory boards:Provide scientific expertise and advise to ministries and other government agenciesExpert hearings:Provide expert advise in parliamentary committee meetings when new laws are formulated or revised (particularly for complex and controversial matters) Example: Coordination for WEF governance13

14. Consultation mechanisms in Germany: Advisory boards and expert hearingsReasons and benefits:Reveal impacts and often complex sectoral interactions of planned measures Provide information about different impact on Nexus sectors and societal groupsRaises public awareness and debate and thus increases legitimacy of parliamentary processExample: Coordination for WEF governance14

15. Dialogue processes and consultationsNational – local dialogues in the GIZ Urban Nexus Project (2013-2014), aiming at: Building relationships and trust between national and local actors.Clarifying mandates, policies and institutional arrangements.Identify opportunities and obstacles for the implementation of national development targets and policies at the local and subnational level. Facilitating coordinated representation of interests from the local to the national level. Example: Coordination for WEF governance15

16. Strategic planning approachOutline long-term policy goals that go beyond individual sectorsIn form of strategic development frameworks, vision statements, or long-term cross-cutting strategic plansOften based on extensive public consultationExample: Coordination for WEF governance16

17. The process for Nexus collaboration17Evaluation of phase 1Evaluation of phase 4Evaluation of phase 2Evaluation of phase 3Action cycle of the Nexus approachSource: Adapted from Naranjo & Willaarts, 2020Stakeholder participation

18. Challenges for realizing horizontal and vertical coordination18

19. What obstacles for horizontal and vertical coordination do you see in your country?Time for some reflection!19

20. Chapter 2.2: Governing the NexusCase studies policy coordination

21. Water-energy nexus coordination in CaliforniaCalifornia passed several policies to reduce energy consumption by the water sector and to decrease GHG emissionsIntersectoral Water-Energy Team (WET) within the Climate-Action Team (CAT) was established to: Achieve large water and energy savings and efficienciesReduce GHG emissionsReduce or eliminate risks from changing hydrological and ocean conditionsCase studies: Coordination for WEF governance21Chrisman Water Pumping Plant at the Grapevine, California. Source: Photo By Amy Quinton

22. Water-energy nexus coordination in CaliforniaIntersectoral Water-Energy Team (WET) within the Climate-Action Team (CAT) comprises a range of state agencies: California Environmental Protection AgencyBusiness Transportation and Housing AgencyHealth and Human Services AgencyDepartment of Food and AgricultureEnergy CommissionPublic Utilities Commission State Water Resources Control Board …Case studies: Coordination for WEF governance22Chrisman Water Pumping Plant at the Grapevine, California. Source: Photo By Amy Quinton

23. Southern African Development Community (SADC) Case studies: Coordination for WEF governance23Water security: Only 60% of people have access to safe drinking water; 40% to sanitation facilitiesEnergy security: More than 50% of the population have no access to electricityHydropower potential is largely untapped Agriculture & Food security: Food production is highly vulnerable to droughts and floodsAgriculture consumes more than 70% of allocated water resourcesSource: Africa Prime News 2018

24. SADC – Coordination challengesInadequate coordination of the three sectors at policy and decision making levelLimited coherence between policies, plans and strategiesSADC governance structure dominated by sectoral orientationsAbsence of a formal structure to facilitate coordination of the Units responsible for the WEF sectors within the SADC SecretariatWeak coordination of programs by the regional implementing entities and other partnersCase studies: Coordination for WEF governance24

25. SADC WEF Nexus FrameworkCase studies: Coordination for WEF governance25The framework is expected to contribute to the coordination of the three sectors:At policy and decision-making level (i.e., Ministerial Level) At the regional technical levelWithin the SADC Secretariat With regional implementing entities and other partnersStrengthening regional multi-stakeholder platforms

26. Strategic planning approachExample of Jordan‘s National Water Strategy, 2016-2025:The National Water Strategy aims to achieve sustainable management of water and sanitation for all JordaniansDue to its cross-sectoral character it also recognizes the role of water for food production and energy generationThe strategy appropriates approaches and methods from water-related sectors It includes activities to (1) enhance sustainable water use in agriculture, (2) expand the share of alternative energy, (3) increase the resilience of livelihoods, (4) strengthen holistic water governanceCase studies: Coordination for WEF governance26Source: Ministry of Water and Irrigation, 2016

27. Chapter 2.2: Governing the NexusPolicy instruments to incentivize resource efficiency

28. Policy instruments to incentivise resource efficiency StateSocietyMarketPolicy instrumentsRegulatory InstrumentsWastewater standardsBuilding standardsLanduse standardsFinancial InstrumentsWater and energy supply tariffsTaxesSubsidiesCommunication/Promotional instrumentsEco-labellingVoluntary agreementsAwareness campaigns Source: Based on GIZ, 2017

29. Regulatory instruments comprise rules and targets set by public authorities (“command”) that are enforced by compliance procedures (“control”). Regulative instruments include legally binding laws, directives and technical guidance documents. Regulatory instruments 29TypeDescriptionProcurement StandardsSpecify purchasing rules for the acquisition of goods and services by the public sector (e.g. energy efficient office equipment)Technology StandardsSpecify which kind of technology must be used (e.g. prescribing or forbidding certain technologies)Building StandardsSpecify energy efficiency requirements for different types of buildings (e.g. increased insulation, reducing needs for heating and cooling)Wastewater Standards Specify regulations for wastewater discharged to surface waters and municipal sewage treatment plants Source: Based on GIZ, 2017

30. 3 main green building standards: Sustainable Building – voluntary standards (will become mandatory in 2022) which includes criteria for energy, land, water, waste, transportation, building site management and innovation for design and construction Energy Rating of Buildings – defines criteria for rating residential and commercial buildings according to their energy consumptionThermal Insulation of Buildings – establishes minimum requirements for thermal insulation Regulatory instruments: Green building standards in Israel 30

31. Strength and weaknesses of regulatory instruments31Strengths WeaknessesHigh effectiveness and certainty in achieving objectivesIf rules and standards are enforced, they are very likely to achieve their aimEconomic inefficiencyIn many countries regulatory instruments fall under the responsibility of the national or federal stateRelatively easy to set up Can in principle be easily formulated and enacted (however often face pressures from powerful interest groups)Low innovation incentiveDo not provide incentives to improve beyond standards (no innovations)Widespread available experienceLong record of experience with regulative instruments which can be used and learned fromImpacts on international competitivenessRegulations can be stricter than in regional/global comparison and therefore reduce competitiveness of national industriesIndependence from market conditionsSupportive infrastructure like fiscal payment systems are not requiredProne to corruptionIf corruption is widespread, regulations can be bypassedSource: Based on GIZ, 2017

32. Financial instruments include tariffs, taxes, subsidies and other instruments that aim to better reflect environmental impacts (externalities) and resource scarcity in prices so that producers and consumers can respond appropriately. Financial instruments 32TypeDescriptionTariffs/User chargesLevied by public authorities for services provided (e.g. water supply, waste disposal)Environmental taxesTax on a physical unit of something that has a specific negative impact on the environment (e.g. waste tax increases costs for waste disposal)SubsidiesFunding provided in order to promote resource efficiency or reduce use of something that has negative environmental impact (e.g. VAT exemptions on electric cars)Source: Based on GIZ, 2017

33. Major water charges in the NL: Water supply charge – for supply of drinking water Wastewater treatment charge – charged depending on the amount of pollution that a business/household discharges into the sewage system Pollution charge – for direct discharges to surface waters Financial instruments: Water charges in the Netherlands 33Cost, production and treatment of wastewater in the Netherlands, 1975-2008

34. Results: Use of groundwater by industry has fallen 20% between 1976 and 2012Energy costs have decreased Industrial plants have increased water treatment on siteFinancial instruments: Water charges in the Netherlands 34

35. Strength and weaknesses of financial instruments35Strengths WeaknessesStrong incentives for resource efficiencyThrough price mechanisms economic instruments address financial interests of target groupSocial considerationsFees/charges can lead to concerns about accessibility of services to the poor (charging cost-covering fees can affect poor people disproportionately)Charging lower fees can prove insufficient to cover the actual costs or to reach resource efficiency improvementsPromote long-term resource efficiency activitiesEconomic instruments provide incentives to invest in research and new technologies to ensure long-term economic benefits Information gaps and political influenceIn order for instruments to achieve their objective, as many actors as possible should be includedThis can be hindered by data gaps and resistance from influential lobby groups seeking to exclude certain industriesMobilization of revenuesEnvironmental taxes and tariffs mobilize government revenues and align environmental and economic goalsSource: Based on GIZ, 2017

36. Promotional instruments include a number of non-binding and voluntary tools such as eco-labelling, awareness campaigns, education and others. They all aim to provide information and increasing awareness about resource efficiency. Promotional instruments 36TypeDescriptionEco-labellingLabel information regarding environmental performance of a product or service (e.g. with regard to energy efficiency)Voluntary agreementsArrangements which encourage public or private actors to improve their resource efficiency beyond existing environmental legislationAwareness campaignsActivities aiming at increasing attention about resource efficiency among a specific group of people or the broader publicEducation/trainingMeasures which educate about opportunities for environmental protection and economic benefits that can be achieved through resource efficiency measures Source: Based on GIZ, 2017

37. Eco Awards Namibia is a sustainable tourism certification programmeThe programme promotes the sustainable use of resources (including water, energy and land) through reducing, recycling and reusingBased on a scoring system for which operators receive up to five “eco award flowers” depending on their performance Promotional instruments: Eco Awards Namibia 37Eco Awards Namibia: https://ecoawards-namibia.org/

38. Strength and weaknesses of promotional instruments38Strengths WeaknessesIncreased environmental awarenessEducation, campaigns and visibility of eco-labels raise awareness among public and consumers about environmental issuesIncentive to participateIncentives to participate in non-binding voluntary activities can be weak (depending on issues such as acceptance among broader public or employers)Long-term effectivenessChanging peoples behavior through education and training (including awareness campaigns and eco-labelling) is an effective means of creating long-term capacities to implement resource-efficiency in production and consumptionLevel of educationInstruments like awareness campaigns, training or eco-labelling can be undermined by a low level of education (particularly literacy level)Encouraging proactive and precautionary attitudesVoluntary agreements and education can shift societies’ and business mindsets from reactionary (e.g. end-of-pipe technologies) to more proactive behavior (e.g. resource efficient production methods)Source: Based on GIZ, 2017

39. Q & A on Governing the Nexus39Any questions on Chapter 2.2?

40. Chapter 2.2: Governing the NexusInteractive Exercise: Policy Analysis

41. Objective: reflect on the policies and instruments that regulate resource use in the WEF sectors within your national context and develop ideas to address these.What to do: Split into groups of 3-5 persons (preferably of the same national background) and read the work instructions on the handout.Timeframe: You have 30 min. for reading the instructions and discussion within the group, followed by 5 min presentation in the plenum. WEF Nexus Policy Analysis 41

42. 21 September 2022Thank you for your time!In cooperation with