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Mainstreaming water efficiency – what could it look like?

Mainstreaming water efficiency – what could it look like?

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Mainstreaming water efficiency – what could it look like?

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  1. www.waterwise.org.uk Mainstreaming water efficiency – what could it look like? Nicci Russell Policy Director, Waterwise Waterwise Technical Symposium, 20th July 2010

  2. www.waterwise.org.uk

  3. www.waterwise.org.uk

  4. www.waterwise.org.uk • Why mainstream water efficiency? • Water efficiency as an opportunity • Where are we now? • Where could we be? • water sector • wider benefits • How do we get there?

  5. Water efficiency as an opportunity www.waterwise.org.uk

  6. Water efficiency as an opportunity www.waterwise.org.uk • Political • Economic • Environmental • Social • For water companies, retailers and manufacturers

  7. Political opportunity www.waterwise.org.uk

  8. Historic context www.waterwise.org.uk • The UK has less available water per person than almost all other EU countries • London is drier than Istanbul • Spain, Italy, Greece have more water than the UK • South East of England has less water available per person than the Sudan and Syria

  9. New pressures www.waterwise.org.uk • Climate change: • Tackling it • Adapting to it • Developing the low-carbon economy • People – approx 150 litres pcc • Demographic change – new homes in water-stressed areas, single households • And 80% of 2050 homes already built…….

  10. www.waterwise.org.uk Climate change: Wetter winters Drier summers Increasing temperatures More droughts and floods Increasing strain on water resources

  11. www.waterwise.org.uk Bewl Reservoir, Kent, Summer 2006

  12. www.waterwise.org.uk Hosepipe ban announced in the North West 07 July 2010 “We have announced that we will impose a hosepipe ban following the driest start to a year since its records began. It is the first hosepipe ban in the North West for 14 years.” United Utilities Thirlmere Reservoir, July 2010

  13. Water Stress:Environment Agency map www.waterwise.org.uk

  14. Economic opportunity www.waterwise.org.uk Every sector of the UK economy is dependent on water Deficit reduction – government, homes, businesses Low carbon economy

  15. Economic opportunity www.waterwise.org.uk Value of water “Many of these industries would not be possible without the use of water. To replace a supply of one million litres of water a day would typically cost about £2 million. The Agency’s regulation of abstraction, therefore, protects resources worth some £72 billion to licence holders. Clearly, water use is of such importance that its value to the economy as a whole is incalculable.” National Audit Office 2005:

  16. Economic opportunity www.waterwise.org.uk 31 Thames Water, water efficiency in hospitals study, August 2006 32 Waterwise estimate

  17. Social opportunity www.waterwise.org.uk Comfort Bills Behaviour Big society

  18. Social opportunity www.waterwise.org.uk Comfort • Waterwise research shows that 80% of social housing has baths but not showers • Waterwise fitted showers and other water-saving devices in a social housing partnership project of 200 homes, through a home visit, and there was a clear social benefit – residents were delighted with their improved lifestyle at no extra cost – as well as 25% water savings with no financial incentive • Waterwise research also shows that, in terms of the water-saving opportunities in homes subject to the current Decent Homes standard, the installation of showers would be of greatest value in terms of saving water, energy, carbon dioxide, and utility charges to the property • Quality of life and homes would be improved for social housing residents, and costs cut

  19. Social opportunityBehaviour www.waterwise.org.uk • Growing trend towards resource-efficient behaviour • Defra’s recent surveys show an increase in people who report making an effort to cut down on water use – from 52% in 2007 to 69% in 2009 • Waterwise research indicates people are keen to be more efficient with water, as well as energy: • 5% of households surveyed liked the idea of having an overall water-saving package in their homes • 48% said they would be willing to pay more for a more water-efficient home • With water, wanting to waste less extends beyond reduced bills – see Waterwise-led Tap into Savings example

  20. Social opportunityBig Society www.waterwise.org.uk

  21. Environmental opportunity www.waterwise.org.uk • Drawing too much water, even beyond water-stressed areas • Protection of the water environment for wildlife and natural resources (including people, economy….) • Tackling and adapting to climate change

  22. Opportunity for water companies, retailers and manufacturers www.waterwise.org.uk • Regulatory compliance – now and in the near future • Meeting carbon targets and cutting costs • New engagement with consumers – new markets • Increased brand reputation • Stimulating competition and innovation

  23. www.waterwise.org.uk B&Q andWaterwise Campaign: Water availability in England and Wales, winter left summer right. water butt sales increased by 300%

  24. www.waterwise.org.uk

  25. www.waterwise.org.uk Where are we now?

  26. Where are we now? www.waterwise.org.uk Water sector – good news • Tens of thousands of retrofits • Water efficiency targets (boardroom…) • National campaigns • Starting to work with other sectors – housing and energy

  27. Where are we now? www.waterwise.org.uk Water sector – bad news (“opportunity”) 1 • Bias towards supply-side incentives • Structures – too much and not enough • Price reviews • WRMPs • Drought plans • Strategic Direction Statements • Catchment Management Strategies • River Basin Management Plans • Notified Items

  28. Where are we now? www.waterwise.org.uk Water sector – bad news (“opportunity”) 2 • Question as to whether structures adequately reflect, incentivise and deliver: • Innovation • Competitive new practices • Widespread mitigation effort • Widespread adaptation effort • International learnings • Customer demand (for example, national campaigns, hosepipe bans) • National priorities

  29. Where are we now?Water sector – bad news (“opportunity”) 3 www.waterwise.org.uk

  30. Where are we now? www.waterwise.org.uk Water efficiency and wider national priorities • Long-term challenges are common across sectors: climate change, population growth, economic stability • And water efficiency can help address these • But water efficiency does not feature in policy for energy, housing, carbon reductions, developing the low-carbon and green economy, or deficit reduction

  31. www.waterwise.org.uk Where could we be?

  32. www.waterwise.org.uk Where could we be?Water sectorA regulatory and political framework for water which (building on targets, Cave and Walker…) Reflects the full, long-term value of water Incentivises water service companies Is not biased towards capital expenditure Drives a long-term investment framework Has tradeable carbon targets at water company level Is developed, and works, alongside those for energy and housing Is linked to an overall per capita consumption target Recognises the importance of engagement with people Is supported by a political commitment to full metering

  33. www.waterwise.org.uk What would this look like? A water company is delivering services such as water efficiency and rainwater harvesting to its customers on a large-scale, earning a return on this activity as much as for supply water and wastewater services. It is developing innovative funding and delivery frameworks and partnerships with local authorities, schools, retailers, manufacturers and NGOs. It is retrofitting tens of thousands of homes and helping all of its customers to change behaviour. All its programmes are measured and targeted for their contribution to national adaptation and mitigation aims. It is a key player in a toilet scrappage scheme for householders, a spend-to-save scheme for schools, and retrofitting programmes for energy and social standards and is working with garden centres to drive water efficient behaviour…..

  34. www.waterwise.org.uk And possibly The shadow price of water is beginning to be developed in the regulatory framework, in advance of full regulatory reform – reflecting regional and price differences

  35. www.waterwise.org.uk Lessons from the energy sector Obligation – led to a huge market developing Including commodities – providers selling credits Metering key Financial savings key – little behaviour change? The same but different....?

  36. www.waterwise.org.uk Incentive for going beyond base level targets.....? Capex opex Treatment of risk Balance of regulation (energy) and incentives (housing) Green Deal provider.........

  37. www.waterwise.org.uk Where could we be?Wider national priorities: mitigation, adaptation and the Big Society Water efficiency is included in Public sector adaptation strategies and resilience programmes Carbon budgets Government guidance on adaptation and good business practice New planning frameworks Strategies and funding to develop the green and low-carbon economy The Big Society

  38. www.waterwise.org.uk Where could we be?Wider national priorities: energy efficiency, homes and buildings Water efficiency is in the Green Deal: £40 vs 6.5K Water efficiency is included in new green financial products – such as mortgages Water efficiency standards for new homes and buildings follow the same trajectory as for energy efficiency, and zero carbon The Energy Performance Certificate is used to drive water and energy efficiency measures Product standards are set for taps, showers and urinals, and linked to procurement Insurance discounts for adaptation measures apply to water efficiency as well as flood defence

  39. www.waterwise.org.uk Where could we be?Wider national priorities: the low-carbon and green economies Product standards are set for taps, showers and urinals, and linked to procurement Toilet scrappage scheme involves retailers, manufacturers and public and third sector Innovative spend-to-save funds in the public and private sector are delivered and financed in partnerships, driving product development Low-carbon strategies and funding, and training, include water efficiency manufacturing and services Including water in the Green Deal increases the number of green service jobs

  40. www.waterwise.org.uk Where could we be? 1 million toilets in England flush at 13 litres: 56% owner-occupied Green Deal: £6,500 – versus £40 water retrofit 80% of social housing has no showers

  41. www.waterwise.org.uk Where could we be?Angle 1 Toilet scrappage scheme Green Deal Single water efficiency plumbing standard Single water efficiency label Showers in social housing Energy Performance Certificate New green financial products Community-scale water provision and SUDS

  42. www.waterwise.org.uk

  43. www.waterwise.org.uk Water efficiency product standardsProcurementSingle water efficiency labelIncentivesAdviceNational campaignPartnerships Where could we be? Angle 2

  44. www.waterwise.org.uk Incentives for water-efficient manufacturingSingle water-efficiency plumbing standard and labelTargeted training, education, R&DClusters of environmentally responsible areasInnovation supported in regulatory frameworks, including cross-sectoral working and new partnerships Where could we be? Angle 3

  45. www.waterwise.org.uk Financing Piggybacking Capex-opex European Investment Bank Reduced bills in homes and businesses Untapped EU funds Mainstreaming water efficiency in government policy Big Society – maximising cost-effectiveness of existing programmes

  46. And finally: www.waterwise.org.uk

  47. www.waterwise.org.uk How do we get there?

  48. www.waterwise.org.uk How do we get there? More research: Costs and benefits (Waterwise Evidence Base) Consumer behaviour and attitudes Optimum per capita consumption Potential contribution to the green economy

  49. www.waterwise.org.uk How do we get there? Ofwat’s “Sustainable Water” process Waterwise White Paper June 2010 Blueprint for Water Autumn 2010 Government White Paper – early summer 2011 Legislation 2012 UK Links Waterwise water sector group And wider government policy.....