Rewarding Water Utilities for Environmental Stewardship: A New Concept in Certification for the Water Sector Karin Krchnak.

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1 Rewarding Water Utilities for Environmental Stewardship: A New Concept in Certification for the Water Sector Karin Krchnak Hermes Justiniano

2 Addressing Global Water Challenges

3 Global Distribution of Cities

4 Source: Center for Environmental Research, University of Kassel. World Water Developmenr Report (WWDR)

5 PREDICTIONS The growth of cities will be the single largest influence on development in the 21st century. - State of the World 1996 An outstanding feature of urban population growth in the 21st century is that it will be composed, to a large extent, of poor people. - State of the World 2007

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7 Millennium Development Goals Halve the proportion of people without access to safe drinking water and sanitation and Reduce the rate of biodiversity loss and ensure environmental sustainability

8 Financing the Millennium Development Goals According to the study in Goals for Development, History, Prospects and Costs paper, $40-$70 billion additional assistance per year would be needed to achieve the MDGs. The amount would roughly represent a doubling of official aid flows over 2001 levels.

9 Growing Demand For Ecosystem Food Food production must increase to meet the needs of an additional 2.5 billion people over the next 30 years Services Water One-third of the world s population is now subject to water scarcity. Population facing water scarcity will double over the next 30 years Timber Wood fuel is the only source of fuel for one third of the world s population. Wood demand will double in next 50 years.

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11 Water user fees & other payments for environmental services

12 Hermes Justiniano

13 Tools, Methods and Strategies for Protecting the Health of Freshwater Ecosystems Establishing Ecological Flow Prescriptions and Managing Water within those Bounds Reducing Water Demand through Effective Conservation Planning for Ecosystem Allocations during Droughts Protecting Source Watersheds Source: Sandra Postel

14 Protecting Source Watersheds - Create Mechanisms to Pay for Ecosystem Services New York City and Watershed Protection (filtration avoidance; cost savings) Costa Rica s national PES Program (hydrological services of forests) Quito, Ecuador: Watershed Trust Fund (water quality, supply reliability; biodiversity) South Africa s Working for Water Programme (flow restoration; biodiversity; supply augmentation) Source: Sandra Postel

15 CONDOR BIORESERVE CAYAMBE COCA ECOLOGICAL RESERVE QUITO SUMACO NAPO GALERAS NATIONAL PARK COTOPAXI NATIONAL PARK ANTISANA ECOLOGICAL RESERVE

16 FONAG (Quito, Ecuador) FONDO FINANCIAL INSTITUTION BOARD DIRECTORS TECHNICAL SECRETARIAT $ EMAAP-Q Project Management EEQ OTHER USERS

17 Types of Community-Based Activities Land acquisition & legal tenure Patrols of protected areas Erosion control & riparian area protection Water source protection Formation of watershed committees Environmental education Promotion of BMPs for agriculture Community development Monitoring & evaluation of project results

18 Blue Water Award/Certification

19 TNC Interest in Working with Water Utilities Utilities have significant impact on water supplies Growing environmental stewardship ethic Public concern over quality issues

20 Overall TNC Goal Catalyze a process and a mechanism to encourage water managers and providers to carry out their operations in a way that minimizes, to the greatest extent feasible, their impacts upon the freshwater ecosystems they operate within and influence.

21 Low Impact Hydropower Institute. Certifies environmentally responsible low impact hydroelectric power dams. What Precedents Exist for such a Program? Forestry Certification Programs Forest Stewardship Council ( FSC ) Sustainable Forestry Initiative ( SFI ) Sustainable Fisheries Programs Marine Stewardship Council an independent NGO that runs a certification program in the marine fisheries field. Certifies well-managed fisheries. OTHER CERTIFICATION PROGRAMS: International Standardization Organization ( ISO ) Certification Processes ISO 14000: Environmental Management Standards U.S. Green Building Council: LEED (Leadership Energy and Environmental Design) Certification Program. Certifies green buildings.

22 Work to Date on the Concept Reconnaissance/scoping of what is feasible in the water and sanitation sectors Review of existing performance indicators/ benchmarking efforts Background papers Roundtables & framing meetings Development of feasibility study

23 Draft Elements Environmental Flow Water Quality Source Water Protection Efficiency/Conservation Integrated Water Resource Management

24 Example of Interested Parties American Water Works Association International Water Association Association for Metropolitan Water Agencies Southern Nevada Water Authority U.S. EPA ISEAL Alliance Forestry Stewardship Council American Rivers WWF International Council for Local Environmental Initiatives National Groundwater Association Aquafed International Nestle Waters Instream Flow Council Denver Water United Water World Business Council for Sustainable Development Rainforest Alliance Orange Water & Sewer Authority Wateraid America Accreditation Services International

25 Official development assistance & financing Increased funding for sustainable water infrastructure Incentive approaches Blue Water Award/Certification Market-based mechanisms Payment for Environmental Services

26 PREDICTIONS It is particularly ironic that the battle to save the world's remaining healthy ecosystems will be won or lost not in tropical forests or coral reefs that are threatened but on the streets of the most unnatural landscapes on the planet. - Worldwatch Institute 2007

27 PREDICTIONS Ecosystem security - preserving the natural functions of ecosystem goods and services for all future generations - will be achieved through integrated, holistic, transparent and participatory resource management and conservation approaches; this is especially true for the water sector. - Karin M. Krchnak 2007