Water Scarcity Solutions Highlight: Air flow dyeing machines in textile production

Guangdong, China
Location: Guangdong, China
Volumetric impact: 362,000 m3/yr
Capital cost: $1,968,000
Estimated unit cost of water: 55 ¢/m3

The Zhaoqing Jiarong Knitwear Dyeing and Finishing Company is located in the Guangdong Province, within the city of Zhaoqing. Its annual dyeing and finishing capacity is 15 000 tonnes of knitted fabric. As part of China’s five-year plan launched in 2011, all of China’s textile manufacturers must reduce energy and water use by 16% and 30% respectively by 2015 or face a penalty fine or closure.

The International Finance Corporation (IFC) China Water Program was set up to facilitate financial investment in water efficiency projects within the four major textile producing provinces of China, one of which is Guangdong.The Jiarong factory upgraded its conventional jet dyeing process to air-flow dyeing machines. This reduces the water requirement of the dyeing process.
The intervention achieved a 53% reduction in withdrawal per tonne of material produced.The interventions were self-financed by the Jiarong factory with support from IFC with the water and energy efficiency auditing process.

Intervention features:
Water audits, Employee participation, Enforcement of quotas

Download the full case study »


About Water Scarcity Solutions Highlights
Each quarter we highlight a specific case study from the 2030 WRG online catalogue of case studies. The catalogue showcases best practice solutions to addressing the growing water scarcity challenge. To submit a case or to view our other case studies, see www.waterscarcitysolutions.org.

Prioritizing Water Investments in Mexico

Mexico Roundtable Discussions

Mexico City, October 2015 — Two workshops were recently held in Mexico on the prioritization of investments for CONAGUA, the National Water Commission. The workshops have been organized by CONAGUA, 2030 WRG and consultants Amec Foster Wheeler and Castalia.

The 2030WRG/CONAGUA joint initiative for developing a capital investment prioritization system will engage in the assessment and prioritization of CONAGUA’s portfolio of investments in some of the most strategic Hydrological Administrative Regions (and their planning units) of the country in terms of their contribution to GDP, the severity of their water security challenges, and other important socio-economic and environmental criteria. The output will allow CONAGUA and other stakeholders (i.e. the private sector) to identify the most strategic  projects for financing. 


Coastweek: Kenya launches public private partnership to sort water scarcity

News Source: Coastweek via Xinhua News Agency

NAIROBI (Xinhua) — Kenya’s Ministry of Water and Irrigation has launched a partnership with multilateral agencies, industry and civil society to explore innovations that would offer durable solution to water scarcity in the country. Officials said the launch of Kenya 2030 Water Resources Group (2030 WRG) marked a critical milestone in the management and supply of the commodity to different users.

“Ensuring a safe and abundant supply of water is vital to attaining vision 2030. A partnership with the private sector and civil society will help generate collective solutions to secure water for the economy, society and the environment,” said Water and Irrigation Cabinet Secretary Eugene Wamalwa.

Kenya became the tenth country in the world to enlist as a member of 2030 Water Resources Group, an initiative formed in 2009 by multilateral agencies, private sector and civil society to promote water security in the global south.

Wamalwa said strategic partnerships are crucial to address a growing water insecurity occasioned by climate change, population growth, pollution and competing demands.

“The aim of our new partnership with multilateral agencies and the private sector is to accelerate the attainment of sustainable development goal six on water and sanitation for all,” said Wamalwa.

The Kenyan 2030 WRG partnership will focus on innovative approaches to boost agricultural water productivity, urban water supply alongside adoption of appropriate technologies to strengthen conservation of the resource.

Anders Berntell, the Executive Director of 2030 WRG said innovative partnerships have provided lasting solution to global water supply challenges.

“Across the globe, WRG partnerships are helping push the water resources agenda to the forefront of high level national debate. In Kenya, these partnerships will address water scarcity and pollution,” Berntell said.

The Kenyan industrial sector has invested in new technologies to enhance water use efficiency.

Vimal Shah, the CEO of Bidco Africa said water scarcity could undermine economic growth and stability in Kenya.

“Water is the lifeblood for everyone and for the manufacturing sector in particular. Improving water resources management is key to realize socio-economic progress in the country,” Shah said.

NTV Kenya: Kenyans urged to engage in water conservation, banking

News Source: NTV Kenya

How informed are Kenyans on water conservation efforts, especially as El Nino approaches? Are there any water banking efforts? By the year 2030, the country will have a 31% gap between water demand and supply. This is according to World Bank affiliate, 2030 Water Resources Group, which co-launched a water security and conservation programme to sensitise Kenyans on this vital resource.

Anders Berntell NTVKenya Partnership Launch

See the news item on KBC TV’s Youtube channel »
See the press release for more information »


KBC TV: Kenya steps up efforts to address water shortage

News Source: KBC TV


The government, the private sector and civil societies in partnership with the 2030 Water Resources Group are deliberating on addressing the issue of water shortage in the country. 2030 Water Resources Group Executive Director Anders Berntell says unsustainable use of water resources will have negative effects for economic development, food security and ecosystems.

Anders Berntell KBC Kenya Partnership Launch

See the news item on KBC TV’s Youtube channel »
See the press release for more information »

Kenya tackles future water gap with 2030 Water Resources Group

Kenya Partnership Launch Press Event

From left to right: Chairman of the Kenya Water and Sanitation CSOs Network Annabell Waititu, CEO of Bidco Africa Vimal Shah, Executive Director of the 2030 Water Resources Group Anders Berntell, and Representative from the Kenya Ministry of Water and Irrigation Engineer Kimanthi Kyengo answering questions from the media at Monday’s press conference.

Nairobi, Kenya, 12 October 2015—The Kenya 2030 Water Resources Group (2030 WRG) Partnership was launched today at a high level roundtable which brought together senior members of Kenya’s government, private sector and civil society to discuss solutions to bridging the gap between the country’s future water demand and supply.

If Kenya maintains a “business-as-usual” approach to managing its water resources, by the year 2030, there will be almost one-third less available water than required to meet the country’s development needs. Several areas central to the country’s economy, such as the Athi River Basin, are already feeling the effects of water stress and require urgent action to prevent water from becoming a constraint to sustainable growth.

Speaking ahead of the event, Cabinet Secretary, Ministry of Water and Irrigation, Eugene Wamalwa, said, “Ensuring a safe and abundant supply of water is vital to attaining our Vision 2030, which aims to transform Kenya into an industrialized middle income country by the year 2030. This partnership with the private sector and civil society will help generate collective solutions to secure water for the economy, society and the environment.”

Woman shelling peas. Kenya.

Woman shelling peas. Kenya. Photo: Curt Carnemark / World Bank

Practical opportunities to be developed through Kenya’s 2030 WRG partnership include: improving agricultural water productivity (“more crop per drop”); strengthening urban and industrial water efficiency and reuse, and creating new financing mechanisms for both water supply expansion and improved demand management.

CEO of Bidco Africa—one of Kenya’s leading manufacturers and marketers of consumer goods—Vimal Shah, stated during the roundtable, “Water is the lifeblood for everyone and also for manufacturing businesses too. For all of us reducing water consumption, and improving wastewater treatment, are important steps that all companies can take. But ultimately water is a common resource, and it is only through more ambitious, collective efforts, such as this Kenya 2030 WRG partnership, that we will deliver action at the scale needed to address the challenge.

Chairman of Kenya Water and Sanitation CSOs Network, Annabell Waititu added, “A coordinated and active network of relevant stakeholders is key to ensuring that the water and sanitation needs of all Kenyans are met. The 2030 WRG is one important step in that direction.”

2030 WRG Executive Director Anders Berntell, said, “Across the globe, WRG partnerships are helping push the water resources agenda to the forefront of high level national debate. In Kenya, the appetite for such discussions, and the interest in exploring new approaches is very impressive.  This is good news and will be critical to ensure Kenya’s sustainable development and use of its scarce water resources.”

Media contacts

Alida Pham, Global Communications Lead (Washington DC, USA) +1 202 603 2535, or email apham4@ifc.org
Josephine Gustafsson, Africa Regional Lead (Nairobi, Kenya)+254 736 702 329 email jgustafsson@ifc.org

New Program Manager SWPN South Africa

Zama SiqabalaZama Siqalaba has been recruited as the new Program Manager for the Strategic Water Partners Network (SWPN) in June 2015. Zama has been involved in numerous water projects throughout South Africa and has already begun supporting the diversity of projects underway. With the secretariat now fully staffed again, the priority for the next six months will be to rebuild momentum and begin demonstrating results, in order to maintain the current high level of commitment to the SWPN amongst partners in South Africa.

The SWPN is a multi-stakeholder platform, brokered by the 2030 WRG, chaired by the Department of Water and Sanitation (DWS), and co-chaired by South African Breweries (SAB) on behalf of business.

2030 WRG International Knowledge Exchange South Africa

Photo: © John Hogg/World Bank

Photo: © John Hogg/World Bank

The 2030 Water Resources Group is organizing an international knowledge exchange in South Africa in February 2016. The Group sees it as an important task to foster the exchange of knowledge and international best practices amongst stakeholders. The meeting is a second in a series of international knowledge exchanges that will bring together leaders from across the public sector, private sector and civil society from all of our partner countries.  

The exchange in South Africa represents the first time we are holding such an event in one of our partner countries. We believe there is much to learn from each other, as well as from many of the internationally renowned water resource management experiences that South Africa has to offer.  The knowledge exchange will provide a mix of seminars, discussions, field visits and networking opportunities, with the aim to maximize the use of our partners’ valuable time.

Based on topics most of interest to our partners, the exchange will focus primarily on the topics of urban and industrial water management, including mine-water management.

The first Exchange was organized at the 2014 Stockholm World Water Week and focused on the ACT model and what each country has achieved thus far in each stage, thereby strengthening also the water community of practice.

For more information:
Will Davies, Africa Regional Lead: wdavies@ifc.org.

Watershed Connect: Watershed Managers Seek Large-Scale Finance In Private-Public Partnerships, Knowledge Brokering, And Risk Sharing

News source: Watersched Connect

By Kelli Barrett

The global water crisis will hit everyone from brewers to bakers hard, but it’s still the rare company that steps up to conserve watersheds. Several participants at a World Water Week event last week highlighted the need to entice private actors into partnerships with public entities by spreading both awareness and risk.

4 September 2015 | In a world of water stress and scarcity, a company’s sustainability can be measured in its use and conservation of water – an analysis of which often yields surprising insights. When Belgian brewer Anheuser-Busch InBev (AB InBev) examined its own water footprint, for example, it found that barley-growers are responsible for 90% of the company’s water usage. In response, it launched several pilot projects to test water management practices and knowledge-sharing networks in agriculture production. By engaging with its agriculture supply chain, AB InBev is already thinking outside its operational walls. Now the company is collaborating with public entities and environmental NGOs to build sustainable management systems in various watersheds.

In Brazil’s drought-stricken Jaguariúna region, which supplies greater Sao Paulo with water, it joined forces with The Nature Conservancy (TNC) and public-sector entities like the Jaguariuna Bureau of the Environment and the Brazilian National Water Agency and others in a watershed restoration program that aims to use large-scale green infrastructure to ensure a clean and steady supply of water for all stakeholders in the Jaguari and Jundiai watersheds. This includes elements of reforestation and soil conservation techniques. The collaboration was the beginning of a unique public private partnership that now includes other national and regional stakeholders.

AB InBev isn’t the only company engaging in such private-public partnerships. South African energy and chemical company, Sasol, formed a partnership with a local municipality and GIZ, Germany’s premier development agency, in an effort to reduce shared water risk through improving urban water infrastructure and plugging leaks. SABMiller, another brewery, partnered with South Africa’s government, WWF and GIZ to identify and reduce watershed risk to hops growers.

And in India, a consortium of national institutions, governments and irrigation companies crafted a program that provides thousands of farmers with credit to upgrade their irrigation systems. Governments benefit from the increase in efficiency and farmers benefit from a larger yield and higher revenues. According to Alastair Morrison, a Senior Operations Officer at 2030 Water Resources Group within the International Finance Corporation, the partnership builds trust between the different parties.

“The public-private alliance isn’t traditional. But each party benefits from working together,” Morrison said during a World Water Week event last week.

This collective approach could be the wave of the future in terms of managing shared and limited water resources. The UN Global Compact CEO Water Mandate notes sustainable water management is effectively tied to engagement among all the parties with a stake in a water source. And working together often means developing or tapping into new sources of funding.

But don’t be fooled by these success stories into thinking crafting and implementing public private partnerships for water management is easy. “It’s a complicated and difficult task,” said Morrison. The event focused on the issue of collective action in the water space from a financial perspective looking specifically at aligning finance for watersheds, agriculture and development. Along with Morrison, panelists from the World Resources Institute, AB InBev and Ecosystem Marketplace publisher Forest Trends were present.

Why is This so Hard?

“It’s difficult for most private companies to think long-term. Most are focused on profits and next quarter sales,” said Ezgi Barcenas, a Global Manager in AB InBev’s Better World, its corporate social responsibility group.

That’s one of several challenges, which range from communication issues to political reasons, in mobilizing the private sector to engage in water stewardship on a grand scale. This grand scale means engaging with an entire supply chain as well as all parties in a watershed as AB InBev appears to be doing.

Outside of the short-term mindset of private-sector actors, the space is relatively data-sparse and that forms another challenge. AB InBev’s pilot projects and information platform on barley-growers is a good example of what’s needed.

“It’s early days with this and there are a lot of unknowns, which to companies, means risk,” said Todd Gartner, a Senior Associate at WRI.

Morrison noted the lack of knowledge and experience regarding public private partnerships can impact decision-making.

The role of government is also tricky. Governments are a key stakeholder that, ideally, establishes the governance and regulatory measures that allow for a fair playing field for companies to engage, Morrison said. However, Barcenas said that governments can come to the table with their own notions about the role of the privates sector which doesn’t necessarily coincide with a business perspective.

Reeling in the Investors

But the overarching key problem lies in project design, according to Gena Gammie, a Manager in the Water Initiative of Ecosystem Marketplace publisher Forest Trends. Project developers and organizations shape their projects and products to appeal to the traditional philanthropic modes of funding. “They don’t have investors in mind,” Gammie said.

Jan Cassin, the Director of the Water Initiative, agreed, noting institutional investors want short-term returns. And watershed restoration projects do deliver short-term returns despite the typical belief that they don’t. The hydrological benefits take a long time to develop but there are immediate results in the form of improved operational efficiencies or cost savings from less dredging because of the reduction in sedimentation, Cassin said.

“We need to demonstrate these short-term benefits while we wait for the long-term return on investments,” she said.

Gammie noted an investments in watershed services project in Peru’s Jequetepeque watershed was stalled after failing to secure an additional $40 million. Further analysis, however, showed the project was capable of generating returns outside of a watershed benefit that could attract investors. Agroforestry and silvopastoral interventions, which the project implemented, generate the financial return investors are looking for.

Those involved in the project learned a significant lesson: “in order for these mechanisms to work, we really need to understand the goals and criteria of each actor,” said Gammie.

Smart Investments for Smart Projects

Although most in the water space agree and believe in collective action, it isn’t applicable everywhere, said Gartner. “We need to do a better job of prioritizing where it makes sense,” he said.

Gartner suggests doing this by integrating metrics like WRI’s Aqueduct tool with its Global Forest Watch instrument to determine shared water risks and stakeholder impacts when assessing potential partnerships and investments.

Engaging investors early and often is also good, Gartner said, as is working with major players in the financial sector like JP Morgan Chase or Goldman Sachs that have divisions dedicated to sustainability matters. “We need to get better at helping them help us,” Gartner said.

And as much as the challenges are present, so are opportunities, which are evident in the existing public private partnerships noted. The growing urgency of the global water crisis, which the World Economic Forum made clear when it listed water atop its Global Risks 2015 report, is a major motivator for private investors and companies to get involved.

Impact investing, where investors are looking to make a social and environmental impact alongside a financial return, is on the rise. These investors would potentially have interest in watershed restoration projects that restore degraded waterways while building sustainable livelihoods for marginalized people. The market for conservation impact investing grew to $23 billion between 2009 and 2013 with projections it will increase to nearly $40 billion over the next five years, according to a TNC and Eco-Asset Management report.

There are also quality standards and certifications, familiar to the carbon world, trickling over to water which can reduce the risk for investors. These protocols such as the Gold Standard’s Water Benefit Standard allow investors to easily track and recognize good water projects.

In short, panelists recognized the complexities and difficulties in establishing public private partnerships but also saw great potential.

Kelli Barrett is a freelance writer and editorial assistant for Ecosystem Marketplace. She can be reached at kbarrett@ecosystemmarketplace.com.

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