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SHELL

| UNILEVER

| XYNTÉO

DISPATCHES FROM THE POLICY FRONTLINE

EXAMINING THE RESPONSE TO THE WATER-ENERGY-FOOD-CLIMATE STRESS NEXUS

© Copyright Xyntéo, November 2013 registered address 3 Wesley Gate Queen’s Road Reading RG1 4AP, UK registered in England Company number 5314641; VAT registration number 857 5824 79. www.xynteo.com


FOREWORD

Content s

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F ore w or d

Foreword 03 The story of the policy shapers project

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Executive summary

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Research findings

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Eight design principles for innovative policymaking

1. Develop policy laboratories and encourage experimentation

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2. Create mechanisms to break down silos

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3. Institutionalise a long-term view

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4. Create and use reliable sources of information

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5. Share knowledge to spread and scale policy innovations

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6. Use smart campaigning

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7. Strengthen local capacity to deliver

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8. Embrace business as a catalyst of change

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Conclusions 68 Next steps

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Annex 1 – About the inaugural policy shapers roundtable

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Annex 2 – Country contexts

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Annex 3 – Contributors

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The recent report from the Intergovernmental Panel on Climate Change makes for sobering reading. It confirms the overwhelming scientific consensus that the world is warming and human activities are responsible. Trends that were once predictions – such as increasing temperatures, rising sea levels and more extreme weather – are now a reality. At the same time, the global population continues to increase, accelerating the race for the planet’s scarce supplies of food, energy and water. o far, our collective response to this challenge has been weak. We are preoccupied with fiscal deficits, sluggish economic growth and short-term political thinking when we should be working to conceive effective policies and robust solutions to drive growth and prosperity. The nexus issues of food, energy, water and a changing climate are so vast and complex that they are beyond the capacity of any one government, however influential, or any one corporation, however large, to tackle on their own. In these exceptional times we need exceptional leadership, which encourages and enables new forms of alignment between businesses, policymakers and civil society. But the levels of trust between these three key actors is at an all-time low. Our ambition for the policy shapers project (about which there is more information overleaf) is to begin to address this trust deficit by creating a community that is committed to

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developing, piloting and scaling transformative policy to foster lowcarbon, resource-efficient investment opportunities. The first step was to seek out the policymakers and influencers who are working together most effectively to conceive policies and business solutions that address nexus issues and drive sustainable growth. And we found them. Actually, we found quite a lot of them, as you will see in this report. As the case studies highlighted here show, the most innovative policies and projects often emerge not so much at the multilateral or national scale with big, unwieldy programmes; but on a smaller scale in cities and regions, where people are freer to experiment. The examples of this from China, Singapore, Australia, India, South Africa, Europe and the US show that success does not always need big investments. They also show that smart policy can unlock superior value for business and the society it serves.

In other words, good policy and, yes, good regulation, is also good business. Our engagement with policymakers, NGOs and business over the past two years has enabled us to establish a core network of practitioners and evaluate best practice. We want to use this work to create even greater momentum around sustainable policy solutions, not only identifying effective new policy approaches but also finding ways to spread and scale them, through the medium of a vibrant community of enlightened people. We need to move decisively, driving change with this community of policy shapers at the leading edge. Shell and Unilever have driven this work to date but our intent is to stimulate other leaders to step forward and start new projects. We hope that, like us, you are inspired by the examples we have found so far, and we warmly invite you to join us in this important and exciting endeavour.

Harry Brekelmans, Executive Vice President, Operated Assets, Royal Dutch Shell

Gavin Neath CBE, Unilever

Xyntéo alone is responsible for this document and any errors it contains. © Copyright Xyntéo, November 2013 Registered address 3 Wesley Gate Queen’s Road Reading RG1 4AP, UK Registered in England Company number 5314641; VAT registration number 857 5824 79. www.xynteo.com

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tHE StORY OF tHE PROJEC t

RESEARCH FIndInGS

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tHE S tORY OF tHE P O LI C Y S H A PE R S PR OJ EC t Every day, the number of people inhabiting our planet grows by more than 210,000 and by 2030 it is estimated that our world will need 40 to 50 per cent more water, food and energy to keep up with rising demand. The pressure is now on to search for ways to make the most of the world’s finite resources and thereby ensure greater security for our vital energy, water and food supplies. olicy is key in stimulating the development of new, more resource-efficient ways to deal with water, land use and urban development issues. The multibillion dollar investments required for low-carbon infrastructure – such as power grids able to deal with distributed, cleaner generation and the introduction of low-carbon fuels into transportation – will not be forthcoming unless there are clear, long-term policy signals. Xyntéo is working with GLTE partners Royal Dutch Shell and Unilever to examine the response to the water-energy-food-climate ‘stress nexus’, and identify innovative policy models from around the world that can help address this 21st century challenge. So far we have spoken to more than 120 policymakers and their influencers (‘policy shapers’) among academics, think tanks and non-governmental organisations (NGOs) in 15 territories around the world, seeking out strong policies that are replicable and scalable – as well as investigating the role business can play in helping develop and spread them. By this means, we are exploring how businesses, policymakers and

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“there is no pathway that allows you to maintain business as usual in any company, government or walk of life.”

civil society can collaborate in new ways to develop and implement policy frameworks and processes that enable resource-efficient growth. In particular, we believe that policymakers and businesses have an increasing need to work together more effectively to re-earn the trust of the people they ultimately serve and deliver necessary solutions. We are also keen to understand more about the key role that NGOs can play in bridging this trust deficit. Ultimately, the goal of the policy shapers project is to help revitalise the relationship between business, government and civil society by creating a community that is committed to developing, piloting and scaling transformative policy ideas as well as developing policy frameworks to foster low-carbon, resource-efficient and affordable investment opportunities. We believe this project will add value to three different but related groups of stakeholders: • executi ve board members in large companies will benefit from access to a neutral platform to make the case for policies that incentivise and can bring forth low-carbon, resourceefficient investment opportunities.

• Innovati ve policymakers and smart governments will more easily be able to find willing business partners to collaborate with on new policy ideas. • NGos and civil society will benefit from better alignment between government and business – working together to achieve integrated societal goals. Note that this report and the project as a whole are not intended to be either comprehensive or encyclopaedic. Rather, we are attempting to identify compelling examples of effective policymaking, which are potentially transferable, scalable, have useful learnings, or can help catalyse more widespread change. In this publication, we have highlighted some of our key findings and most compelling examples. We are also working to create a digital platform containing all this information and more, which we hope will facilitate both the transfer of ideas and the forging of new relationships. Meanwhile, if you would like to be part of this community and/or have ideas or case studies that you would like us to share, please contact us at glte@xynteo.com

Ultimately, the goal of the policy shapers project is to help revitalise the relationship between business, government and civil society.

John Ashton CBE, former special representative for climate change to the UK foreign secretary; and founding director of E3G

POLICY SHAPERS

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EXECUtIVE SUMMARY

EXECUtIVE SUMMARY

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E XECUtIVE SUMMARY The scale and complexity of addressing issues across the nexus of food-water-energy and climate is apparent to all who work in this landscape. Our engagement with policymakers and influencers through our research has sought to aid this global effort by shining a light on successful activities at the frontline of policymaking. n this report we highlight how and where successful activity is happening. In addition to learning from success, we have found that trial and error, and even failure, has a critical role to play. We have purposely developed this report to be open-ended, and would ask that you reflect on the key findings and discuss them with your peers. The report is arranged according to a list that we have developed of the key factors – the ‘design principles’ – that encourage and support innovative policy-shaping activity across the water-energy-food-climate nexus. Each of these is supported by a series of case studies as well as further material provided in the country contexts in Annex 2.

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dEsiGN priNCiplEs For iNNovaTivE poliCymakiNG aCross THE NExus

1. develop policy laboratories and encourage experimentati on: Effective policy experimentation tends to take place at the city or regional level, rather than at national government level.

the overwhelming message from our work to date is that making successful policy across the water-energyfood-climate nexus demands new forms of collaborative partnerships.

POLICY SHAPERS

2. Create mechanisms to break down silos: Breaking down silos between different stakeholders and across the nexus is a key requirement for effective policymaking, and is often also a major stumbling block.

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3. Insti tuti onalise a long term view: Short-term thinking leads to weak policies and, in many cases, perverse outcomes across the nexus. Where a longer-term view can be institutionalised, there is much more potential for positive and lasting change. 4. Create and use reliable sources of informati on: Data provided by NGOs and academic institutions can significantly influence government activity by allowing policymakers to understand the issues at hand and monitor the impact of policies they develop in response. 5. share knowledge to spread and scale policy innovati ons: Ideas can transfer from one region or country to another, and are most successful when the transfer takes account of local context and nuance. 6. use smart campaigning: Policymakers and NGOs have developed effective ways of communicating and campaigning to achieve impact in nexus areas. 7. strengthen local capacity to deliver: Especially in developing countries, lack of capacity at a local level can block effective implementation of otherwise well-developed national policies.

The solutions are to work on building local capacity in partnership with NGOs and businesses, and to ensure that capacity limitations are reflected in the policymaking process. 8. Embrace business as a catalyst for change: Businesses can take a lead on tackling nexus and climate-related issues, achieving outcomes that neither governments nor NGOs could achieve on their own. Finally, note that these principles are much more effective (and some are only possible) when collaborations take place across traditional boundaries. This may involve collaborations between policymakers from different government departments, regions and cities; NGOs, academics, think tanks and other representatives of civil society; businesses, their supply chains and the communities in which they operate; and in some cases all of these. The overwhelming message from our work to date is that making successful policy across the water-energy-food-climate nexus demands new forms of collaborative partnerships – and the new kinds of leadership that this inevitably implies.

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RESEARCH FIndInGS

RESE ARCH FIndInGS

we have pinpointed eight key factors – the ‘design principles’ – that encourage and support innovative policy shaping activity across the waterenergy-food-climate nexus. In this section we will detail each of these design principles, using case studies to contextualise and highlight our findings.

PRInCIPLE 1 d E V E L O P P O L I C Y L A B O R At O R I E S A n d E n C O U R A G E E X P E R I M E n tAt I O n

California is a global leader on sustainability and clean technology development, well known for its experimental and innovative culture.

Effective policy experimentation tends to take place at the city or regional level, rather than at national government level. CHaraCTErisTiCs oF EFFECTivE poliCy laBoraToriEs

“Success is not guaranteed. If you try you may fail, and if you don’t try you will fail. we need to try.” Li Junfeng, Director general, National Centre for Climate Change Strategy and International Cooperation (NCSC), National Development and Reform Commission (NDRC)

POLICY SHAPERS

• they tend to be smaller scale • there are oft en popular percepti ons of resource scarcity and/or a general environmental sensibility • policymakers are seen as leaders and not afraid of, or punished for, failure • there is a culture of learning by doing • there are close ti es between diverse stakeholders, united by a common vision • there is strong, decisive leadership at a local level • there is an inovati ve business culture • there are weak or absent opposing lobbies • pilot acti vity exists, to test and develop approaches • there is a willingness to learn from other examples around the world. CasE sTudiEs

California is a global leader on sustainability and clean technology

development, well known for its experimental and innovative culture (see California country context, p 80-81). For example, their low carbon fuel standard (the first of its kind) has influenced biofuel policy development in other US states and at federal level, Canadian provinces, and the EU. (See case study 1, p 10). Australia’s water trading activity in the Murray-Darling basin (another world first) has in effect been a policy experimentation over the last 20 years with the government seeking to develop a system that will reduce water consumption in the region. (See case study 2, p 11 and Australia country context p 78-79). China’s low carbon pilots illustrate a system of governance which encourages policy experimentation and learning-by-doing at scale. (See case study 3, p 12 and China country context p 82-83). Singapore’s water policy, which stimulates business to innovate, illustrates the value of joined-up thinking across different government

departments and clear strategic goals around a vision of water independence. (See case study 4, p 13 and Singapore country context p 90-91). In China the development of the Huaqiao region demonstrates how the local Chinese government has sought to experiment with taking a more sustainable approach to development. (See case study 5, p 14). In South Africa the 110% Green experimental initiative demonstrates that when government sets a framework and collaborates with businesses and NGOs new ideas can come forward to address previously large scale intractable issues. 110% Green is seeking to address a number of issues including the provision of housing and clean water. (See case study 6, p 15).

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Case studies

C a s e s t u dy 01 C a l i f o R n i a’ s loW- C a R B o n f u e l s ta n d a R d California’s low-carbon fuel standard (LCFS), approved by the state’s Air Resources Board (CARB) in 2009, mandates that blenders, refiners and importers reduce the carbon intensity of transportation fuels sold in the state by at least 10 per cent by 2020. The standard also aims to reduce the state’s dependence on petroleum, creating a market for clean transportation technology, and stimulating the production and use of alternative, low-carbon fuels in California. o develop the policy, then Governor Schwarzenegger asked California’s Environmental Protection Agency to work with the University of California, the California Energy Commission and the Public Utilities Commission. This division of labour enabled study authors to work closely and quickly with stakeholders in industry and NGOs – their recommendations to ARB had thus already been vetted by groups with greatly differing cultures and incentives. The LCFS has proved controversial and challenging to policymakers due to its inclusion of indirect land use changes, impacts on fuel prices and concerns around security of supply and is subject to ongoing court proceedings. Nevertheless, the LCFS has inspired similar proposals in 16 US states, the EU and the Canadian province of British Columbia, as well as at the US federal level – an important development because, in isolation, the policy risks incentivising fuel suppliers to sell their carbon-intensive fuels outside California.

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K e y ta K e away s • The importance of building trust between diff erent stakeholder groups and obtaining their input to the policymaking process. • Experimentati on on a sub-nati onal scale can spread both nati onally and internati onally under the right conditi ons.

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C a s e s t u dy 0 2 a u s t R a l i a’ s m u R R ay– d a R l i n g B a s i n W at e R t R a d i n g Driven by over a decade of drought, and rising demand for water, Australia created the world’s first water trading system, designing an innovative model that countries around the world are now looking to emulate.

the lCfs has inspiRed similaR pRoposals in 16 us states, the eu and the Canadian pRovinCe of BRitish ColumBia, as Well as at the us fedeRal level.

he biggest and first step Australia took was to separate water from land rights, creating set allocations and allowing rights owners to trade them either on a seasonal/ temporary or permanent basis. But this was backed by the establishment of independent water authorities to regulate the trade, capping overall usage and measuring it, while creating robust national water accounts to make sure authorities had accurate information on how much water was being used and traded. The price signal that water trading creates shifts consumption from low-value to high-value activities and creates incentives for more efficient use of water, offering economic rewards for reducing consumption while punishing overconsumption.

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The proof that the new system works lies in the fact that in recent droughts water trading saved many Australian farmers from bankruptcy, enabling them to make more money from the sale of water entitlements to urban consumers than by growing crops. Over $3 billion of water licences were traded on water exchanges in the Australian water market in 2010 alone. But the system is not without its weaknesses; historical overallocation of water rights has led to continuing unsustainable extraction of groundwater in some areas, and in some areas vested interests were allowed to escape proper regulation. However, Australia has reacted to these obstacles in innovative ways, including by creating a Commonwealth Environmental Water Holder and State

Environmental Water Holders that purchase water allocations on behalf of the environment. An example of how these agencies operate is through buying water when the prices are low and then creating intentional water flushing events to mimic the natural flooding cycle, which often no longer occurs because of intensive water usage. Everything to do with water is overseen by an independent national water commission that monitors all states’ activity and in 2011–2012, 1437 gigalitres of water entitlements were traded across Australia, up 19 per cent on the previous year. Australia’s water markets show that a mix of market mechanisms, independent regulators and policy innovation can tackle real resource constraints effectively.

K e y ta K e away s • Putti ng a policy framework in place to set a price on scarce resources and creati ng a transparent trading system can overcome resource constraints. • To avoid perverse outcomes, from the infl uence of vested interests apparent in a market-based system, independent bodies play an important role in protecti ng the public interest and maintaining environmental services.

oveR aud $3 Billion of WateR liCenCes WeRe tRaded on WateR eXChanges in the austRalian WateR maRKet in 2010 alone.

“By acting early, California has launched a policy experiment that could produce valuable lessons for the united states and other countries.” Dr Mary Nichols, chairman, California Air Resources Board

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C a s e s t u dy 0 4 singapoRe’s W at e R p o l i C y Singapore’s small land area, high population density and scarce freshwater supplies have forced it to develop one of the world’s most innovative water management plans. Through the combination of an extensive urban rainwater catchment system, wastewater reclamation and desalination on the supply side, and water pricing and efficiency measures on the demand side, Singapore plans to eliminate its dependence on water imports by 2060.

C a s e s t u dy 0 3 C h i n a’ s C a R B o n e m i s s i o n s t R a d i n g pi lot s China is committed to reducing its emissions intensity per unit of GDP by between 40 and 45 per cent by 2020. A national carbon emissions trading scheme, which the Chinese government is seeking to introduce by 2015/2016, is seen as a key policy instrument in helping achieve this goal. Seven carbon trading pilots have been established – in Beijing, Chongqing, Guangdong, Hunan, Shanghai, Shenzhen and Tianjin – covering a population of 260 million people. he seven regional pilot locations were selected to reflect the diversity of China in terms of development and each has specific reduction targets. The pilot regions have translated these targets to specific quotas that limit what individual polluters can emit. The seven pilot areas are at different stages of development with Shenzhen being the most advanced, having launched its scheme in June 2013. The Shenzhen emissions trading scheme (ETS) covers 635 companies from 26 sectors, which are responsible for 38 per cent of the city’s total emissions. The 635 companies will be given a free allocation of approximately 100 MT of CO₂ emission allowances, in aggregate, over the next three years. If they only emit their

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allotted amount, this would be equal to a 32 per cent reduction in terms of GDP emission intensity. The allowances are determined by emissions intensity rather than in absolute terms, meaning the government will review individual companies’ Industrial Added Value on an annual basis and increase or decrease the absolute emission allowance to maintain a fixed emissions-to-GDP ratio. The Shenzhen pilot has been developed in light of learnings from other emissions trading schemes, such as the Californian ETS, the Tokyo City carbon trading scheme, the Australian carbon trade scheme and the EU ETS. As the schemes start to come on stream they face a number of key challenges: • The pilots are based around local legislatures, which have fewer teeth

than national bodies, so establishing penalties for noncompliance may be challenging. • There is no nationally agreed methodology to account for and report GHG emissions, and China currently lacks the expertise and capacity to deliver this. • Caps are derived from emission intensity targets adding further to data complexity. • Buy-in from local governments and business for emissions caps is problematic in the face of central government targets that stress economic growth.

K e y ta K e away s • C hina has a system of governance which encourages policy experimentati on and learning-by-doing, at scale. • Within this, local governments developing carbon pilots are acti vely seeking to learn from internati onal examples. • Intensity-derived allowances are a potenti ally powerful concept that could hold lessons for other developing countries.

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he Public Utilities Board (PUB) has been working with the Economic Development Board (EDB) to encourage companies to do their research and development into water issues in Singapore, as they see this as fundamental to helping them achieve their 2060 water vision. A supportive business environment, including financial incentives, is provided to encourage business to undertake R&D in the water sector. In particular, PUB allows companies to test their nascent technologies on Singapore’s waste and saline water. By doing so, Siemens developed a gamechanging system for electrochemical desalination, which dramatically reduces the amount of energy used. A pilot plant using this technology is in place in Singapore. Building Singapore’s reputation as a world centre for expertise on water has created commercial opportunities for Singaporean companies overseas. For example, Hyflux, which produced the membranes used in Singapore’s desalination and water plants, has now built a number of water recycling plants in China.

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K e y ta K e away s • The role that government can play in providing a supporti ve policy framework for businesses to develop creati ve soluti ons to nexus problems. • The value of joined up thinking across government departments and clear strategic goals.

Building singapoRe’s Reputation as a WoRld CentRe foR eXpeRtise on WateR has CReated CommeRCial oppoRtunities.

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C a s e s t u dy 0 5 s u s ta i n a B l e d e v e lo p m e n t i n h uaq i ao, C h i n a Huaqiao is an administrative area of Kunshan city, one of the most economically successful countylevel administrations in China. Since 2007, it has seen the implementation of a radical approach to low-carbon planning and environmental regeneration. Known in China as ‘the home of fish and rice’, Huaqiao encompasses urban, agricultural and fish-farming areas and is home to 150,000 people. Looking to regenerate the local area and attract more investment, the local government developed a long-term plan for improving energy use, transport and water and waste management, as well as supporting natural habitats. ecuring commitment to a comprehensive low-carbon scheme proved extremely difficult. A lack of evidence of the impact that could be attained by lowcarbon policies, combined with the long-term nature of such outcomes, meant that government officials and other stakeholders whose focus is on short term economic growth targets were initially reticent. It required strong, visionary local leadership and painstaking stakeholder engagement to sell the programme to key government officials. Low-carbon regeneration has initially concentrated on specific areas. The Huaqiao Bay, which had become a landfill wasteland, was recovered

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to be used as a wetland purification area – in which grey water is naturally purified. Elsewhere in the city, areas have been designated for carbon-sink parks, organic agriculture, as well as commercial and residential usage. Across the city, low carbon has been at the forefront of planning policy. By the end of 2012, more than three million square metres of ‘green buildings’ and six kilometres of new railways had been built, as well as the launch of 12 bus lines and a public bicycle hire scheme. The long-term benefits of the project have yet to be realised, but rising property values and significant inward investment have supported commitment to the vision across the city.

C a s e s t u dy 0 6 s o u t h a f R i C a’ s 110 % g R e e n i n i t i at i v e

K e y ta K e away s • The case can be made for long term sustainable goals in the face of short term economic imperati ves provided there is strong leadership and comprehensive stakeholder engagement. • The value of adopti ng locally relevant soluti ons for low-carbon regenerati on. • The importance of holisti c approaches to low-carbon planning and development.

Sometimes challenges are so large and intractable that finding a solution seems almost impossible, but the Western Cape is showing with its 110% Green initiative that innovative thinking and collaboration can open up new ways of thinking. he Western Cape government decided to carve out a space to experiment – away from central government – along with the private sector and NGOs, to build a green economy to tackle the region’s social inequality and environmental problems, with the aim of turning the Western Cape into Africa’s green economic hub. In one of the projects, the Better Living Challenge, 110% Green is looking to businesses and designers to come up with affordable low-carbon solutions, not to build new housing, but to improve the informal housing that is there, while integrating services like water and sanitation. These solutions need to enable people to incrementally improve their homes and have access to the

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financing to do that, which will need to come from the private sector. But that is not the only problem. Waste water running out of informal housing and into the Berg River system is polluting a river that waters most of Western Cape’s agricultural land. So another 110% Green initiative is using biomimicry to find natural systems to end this cycle. The Western Cape government has created partnerships with municipalities, universities, CSIR (Council for Scientific and Industrial Research) and the Department of Water Affairs to work together on the project – the idea being that the partnership will identify solutions and will then find private sector partners to commercialise them.

K e y ta K e away s • When public funding is not available, mobilising the private sector and its innovati on capabiliti es is a powerful way to fi nd soluti ons. • Coaliti ons of academia, government and the private sector can work together eff ecti vely to tackle big problems.

110% gReen is looKing to Businesses and designeRs to Come up With affoRdaBle loW-CaRBon solutions.

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ReseaRCh findings

Rese aRCh findings pRinCiple 2 C R e at e m e C h a n i s m s to B R e a K d oW n s i lo s Breaking down silos between different stakeholders and across the nexus is a key requirement for effective policymaking, and is often also a major stumbling block. EFFECTIVE METHODS FOR BREAKING DOWN SILOS

• • • • • • • •

Putti ng the needs of end users at the centre of the discussion The involvement of professionals from a diversity of disciplines to craft the policy Engaging with all stakeholders to understand their concerns and help get bett er tracti on on the ground Having a long-term commitment to working together Creati ng a perceived common goal Developing good personal relati onships between key individuals in diff erent silos Finding a neutral space to facilitate comfortable engagement between stakeholders Expanding the problem to include more stakeholders and issues, thereby making it more tractable.

CASE STUDIES

“We need to embrace complexity rather than pretend that it doesn’t exist. Being siloed in the future is not a possibility. We have to be able to look at things in a connected manner.” Professor Kevin Noone, director, Swedish Secretariat for Environmental Earth System Sciences

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California’s Air Resources Board (CARB), responsible for protecting the state’s air quality, bridges silos through its structure and composition – with nearly all members being part-time, spending the other half of their time in a diversity of professions from medicine to law. (See case study 1, p 10). South Africa’s CityLab activity illustrates a model that seeks to embed academics within Cape Town’s policymaking government machinery to ensure better policy outcomes. (See

case study 7, p 18 and South Africa country context p 92-93). By developing a low-cost housing solution in Mbekweni, South Africa, Collis & Associates sought not only to maximise local resources but also to address difficult social and economic issues. The team developed close relationships with local policymakers and end users, creating homes that people wanted to live in using recycled materials and community builders. (See case study 8, p 19). In Gujarat, policymakers successfully expanded their approach across nexus issues and engaged with a range of stakeholders – farmers, industry and rural residents – to solve an apparently intractable problem around electricity tariffs. (See case study 9, p 20 and India country context p 86-87). For Singapore’s Urban Redevelopment Authority, interagency collaboration is mandated in their long-term planning for the country’s development. (See Singapore country context p 90-91). In China the National Development and Reform Commission (NDRC) is a government department set up in 2005 to try to work across silos and coordinate ministries, industries and local government. (See case study 10, p 21) The Nature Conservancy is building its presence across the world by using a wide stakeholder approach to building advisory boards for its ‘chapters’. For example, in China the advisory boards

of its provincial chapters include business leaders, prominent scientists, heads of influential NGOs and citizen organisations. The Centre for Sustainable Shale Development (CSSD) seeks to bridge silos by bringing together former regulators, producers and environmental groups to develop standards for the industry. (See case study 11, p 22). In Russia, the European Bank for Reconstruction and Development (EBRD) has worked directly with the private sector to bridge silos by uncovering the local policy challenges that governments need to tackle most, taking these to the Russian government and working with them to remove the barriers to change. (See case study 12, p 23 and Russia country context p 88-89). Working across silos on nexus issues can often bring about solutions in unanticipated territories. The longterm watershed protection programme in the Catskills, New York State is an interesting case in point. Its efforts to produce safe drinking water have revealed that it is more cost-effective to manage the upstream watershed than set up a downstream water filtration plant. Another example is Evian paying landowners to improve farming practices (ie use less fertiliser) to reduce nitrates entering the water supply, which is less expensive than filtering and purifying the water further downstream.

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for singapore’s urban Redevelopment authority, interagency collaboration is mandated in their longterm planning for the country’s development.


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C a s e s t u dy 0 7 s o u t h a f R i C a’ s C i t y l a B s Professor Edgar Pieterse was frustrated by the divide between academics, policy researchers and Cape Town’s policymakers. He wanted to find ways to engage much more closely with those actively involved in policymaking. he opportunity came when he was appointed director of the African Centre for Cities (ACC), and research chair in urban policy at the University of Cape Town. The ACC was tasked with facilitating urban research and policy discourse to promote vibrant democratic and sustainable urban development from an African perspective. To do this, the ACC created CityLabs to bring together different stakeholders – academics, community organisations, NGOs and government officials – to design educated, implementable policies for South Africa. CityLabs use empirical research and practical knowledge, bringing together both practitioners and researchers across disciplines to find sustainable urban solutions.

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Four ACC researchers are embedded in Cape Town’s city administration, creating a hybrid policymakingacademic entity. Over a two-year period they work on difficult multistakeholder topics that the city finds difficult to get traction on from ‘green strategy’ to city climate change adaptation policy. The timeframe allows them to build relationships and trust with policymakers while still maintaining their independent voice. The CityLab approach provides an opportunity for stakeholders to come together, bridge silos and learn from one another, all with the aim of developing more robust and practical solutions.

K e y ta K e away s • Bringing together everyone from policymakers to community in a neutral space like a CityLab can build trust and lead to the development of well-informed practi cal and implementable policies. • Creati ng a hybrid policymaking-academic unit within government can introduce independent thinking and innovati on while building trust.

“personal relationships are very important. unless the people invested in the policy question are really able to trust each other, it is impossible to crack the policy issue.”

C a s e s t u dy 0 8 loW- Co s t s o C i a l h o u s i n g in mBeKWeni, south afRiCa

Edgar Pieterse, professor and South African research chair in urban policy; and director of the African Centre for Cities, University of Cape Town

Collis & Associates is a multi-disciplinary architectural and engineering consultancy specialising in sustainability, based in South Africa. In 2005, it was commissioned by the Western Cape’s department of local government and housing to develop low-cost, sustainable, social housing in the Mbekweni community, near Paarl, in the Western Cape. ollis & Associates’ approach is premised on matching local resources, in particular local waste streams, to local requirements. The first, key step in any project they undertake is a detailed mapping process. They begin with resource mapping, which includes working out what is available for free on the site, for example rocks, sand and building waste, in addition to mapping building resources within a five to six kilometre radius of the side, local ecosystems (like biology and water systems) and local communities (ie, labour, skills and potential NGO support). They also ‘mapped’ the government relationships, what the host community does and what they value in the built environment. The houses were built using predominantly local materials and provided the opportunity for the unskilled and unemployed in the local community to have a place to learn and earn, for example through

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WoRKing aCRoss silos on neXus issues Can often BRing aBout solutions in unantiCipated teRRitoRies.

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recycling waste materials. They were built so as to support a sustainable lifestyle, with rainwater tanks, solar water geysers and food gardens to provide food security, reduce living costs and give dignity to the owners. The approach was a radical departure from the typical social housing projects in South Africa, which often involve a mass roll-out of identikit, block houses. As such, a significant amount of time and effort was devoted to building support for the project in the local community and government. Early on, a champion was identified and engaged in the local government – the focus of the discussions was not initially on sustainability but on the alignment of the project with strategic government goals, in particular employment and training. Establishing trust with the local community was essential – this was achieved by spending time on the ground and always having the same face, or faces, representing the project.

Finally, a key stage in ‘selling’ the project concept to all stakeholders was the development of a prototype house that showcased the approach. Ultimately, the people who moved into the homes and who were involved in the project, spoke of how, for the first time, a home had been created for them, not just a house. In total 13 demonstration houses were built, with construction costs within the government subsidy. When the champion moved on to another role in government she sponsored a similar housing project, which was also successful. Collis & Associates have applied these design and construction principles and approaches to major commercial projects, for example the over ZAR 1 billion upgrade of the Koidu diamond mine in Sierra Leone, which is considered by the government to be a model redevelopment project.

K e y ta K e away s • For innovati ve projects to be successful they require champions in government and trust to be built with key stakeholder groups. • Pilots are powerful tools with which to engage project stakeholders. • Going with the grain – the recogniti on of and alignment with what is pre-occupying policymakers to get tracti on on a policy or project initi ati ve.

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C a s e s t u dy 10 t h e n at i o n a l d e v e lo pm e n t and RefoRm Commission, China China’s transformation has been in no small part due to its ability to coordinate action across vast geographies and populations, bringing together people and institutions behind a single goal.

C a s e s t u dy 0 9 e l e C t R i C i t y ta R i f f s i n g u j a R at, i n d i a India’s agricultural sector demonstrates the close interrelationship between water, energy and food – and the consequences of managing these systems without regard for their impacts on one another. In most states, agriculture is the biggest consumer of electricity, which is used to pump groundwater for irrigation. ntil recently, farmers in the state of Gujarat were charged electricity tariffs based on the ratings of their water pumps rather than on their actual energy usage. This incentivised them to pump as much water as possible, depleting groundwater in an already droughtprone state. Moreover, since the Gujarat Electricity Board (GEB) was losing money, it began curtailing power to farms. Farmers responded by installing their own capacitors to tap into electricity intended for residential and industrial use. To external advisors such as the World Bank, the solution seemed obvious: install meters on farmers’ wells and force them to pay for the electricity they consume. But Indian farm lobbies are powerful and several chief ministers who had tried this

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approach in other states had promptly lost their seats. In 2003, the Gujarati government launched a scheme called the Jyotigram Yojana. GEB effectively constructed a parallel transmission system for agricultural customers so the electricity board could monitor, price and ration power consumption separately from the residential and industrial sectors. Power theft dropped, electricity revenues increased (allowing the agency to recover the initiative’s significant upfront costs within two and a half years), and although electricity costs rose for farmers, they benefited from predictable access to eight hours a day of guaranteed, high-quality electricity supplies. Meanwhile, rural residents and industry also gained access to uninterrupted electricity, and, since

farmers now had a cost incentive to be more water-efficient, the water table began to recover. The scheme’s innovative approach required policymakers to switch from a siloed mindset to one that co-optimised energy, water and food production, and earned it the Innovation for India Award in 2010. Gujarat now has the fastest growing agricultural sector in the country, and is selling surplus electricity to neighbouring states. Rajasthan, Maharashtra and Andhra Pradesh have all now adopted elements of the programme. In a draft of the 12th fiveyear plan, India’s Planning Commission indicates that the principles behind Jyotigram Yojana should be extended to all states.

K e y ta K e away s • Understanding the drivers of local stakeholders matt ers, as it both enables and discourages certain behaviours. • Expanding the problem can someti mes make it more tractable. • Joining up across the nexus can opti mise project results, but this does not come as second nature and requires long-term commitment to a diff erent way of thinking.

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he National Development and Reform Commission (NDRC) has driven China’s development, coordinating diverse government departments and institutions to deliver whole-economy and whole-society transformations, by creating policy and driving implementation. It has wideranging responsibilities, from economic development and climate change to resource conservation and commodity price-setting, but the NDRC’s key role of coordinating ministries, industries and local governments in both policymaking and implementation processes is a great example of working across silos on a grand scale. In 2007, the NDRC crafted China’s national climate change strategy, the first guiding document of its kind, under the auspices of the national leading group on climate change, energy conservation and emission reduction. The NDRC coordinated the group’s activities, and was headed by former prime minister Wen Jiabao, with 22 members consisting of ministers and the heads of organisations including the China Meteorological Administration and the China Academy of Science. Now the NDRC is leading efforts to promote carbon capture, use and storage (CCUS) in China. To this end, the NDRC is establishing a crossdepartment coordination mechanism, building collaboration between

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departments that have regional development and reform commissions and research institutes, all with the aim of encouraging enterprises in key industrial sectors to recognise the importance of CCUS and work towards its development. The all-powerful NDRC has come in for criticism in recent times, with questions about its relevance as China moves increasingly towards a more open market-based economy, but the body’s central direction and ability to coordinate different ministries has played a key part in China’s metamorphosis. The NDRC continues to provide the policy push for government, industry and stakeholders, with its successful initiative to create low-carbon cities across China driving a new phase of more environmentally-sensitive growth.

K e y ta K e away s • A central convening body with the ability to coordinate stakeholders and government bodies can be very eff ecti ve in bridging silos, thereby driving change and policy implementati on on a much larger scale.

the Body’s CentRal diReCtion and aBility to CooRdinate diffeRent ministRies has played a Key paRt in China’s metamoRphosis.

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C a s e s t u dy 11 T h e C e n TE R f o r S u s ta i n a b l e S h a l e D e v e l o p m e n t, USA The development of shale gas has exploded across the USA, changing the country’s energy landscape, and the world’s, but some local communities are concerned about its impact on the environment. ith the new industry expanding so quickly and changing so rapidly, regulation has not kept up, leaving local communities and energy companies to meet on a frontier with few rules and conflicting interests. In Pennsylvania, those conditions led former regulators, shale gas producers, environmental groups and local community and environmental activists to come together to try and set standards for the sector, leading to the establishment of the Center for Sustainable Shale Development (CSSD). The centre has developed performance standards for shale gas production, which will be continually revised as practices and technologies

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evolve. The idea behind the centre was that it would drive the industry to look for ways to improve performance and innovate, creating an institute that would establish leading practice, certify companies in it and, by doing so, positively influence the culture in the industry as a whole. In other words, by setting a high standard, CSSD could raise standards across the industry without waiting for regulations to catch up. It would also offer the opportunity for the people of Pennsylvania to push for higher standards of environmental protection while giving the companies involved in the state a competitive edge by getting ahead of the curve on regulation and innovation. For

environmental groups it offers the chance to get an inside look at what is actually happening in the industry and set new rules and standards for those practices. For example, CSSD is currently seeking to develop safe standards for the disposal of waste water. It is too early to say how effective this collaboration will be, and the centre has come under fire from both environmentalists and industry, but the coming together of environmental groups, shale producers, former regulators and communities could provide a model for how energy development and key natural resources like water can be protected and developed in tandem.

K e y ta k e away s • Industry, communities and environmental groups can have a common interest in coming together to promote higher standards for new energy industries.

C a s e s t u dy 12 E B R D ’ s s u s ta i n a b l e e n e r g y i n i t i at i v e i n R u s s i a Through its Sustainable Energy Initiative, the European Bank for Reconstruction and Development (EBRD) has invested €2.4 billion in Russia, working with businesses, policymakers and financiers to create a successful sustainable investment programme. he EBRD has developed a unique business model to finance sustainable energy projects, combining investments with technical assistance and policy dialogue. A team of policy experts, technical engineers and investment bankers work first with the Russian private sector to identify critical policy barriers. The bank then takes these insights back to government and collaborates with them to remove barriers to market development and improve the investment environment. In this way, silos across stakeholder groups are broken down and the main barriers are highlighted and addressed. Its work has had concrete impacts. The EBRD financed 102 projects in everything from residential and industrial energy efficiency to clean energy production and this has led to

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a one per cent reduction in Russia’s greenhouse gas emissions annually (18 million tonnes of CO₂ a year), with primary energy savings from the projects amounting to nine million tonnes of oil equivalent a year. Following the success of this initiative, the EBRD has just launched a successor, the Sustainable Resource Initiative (SRI), which will take a similar approach to promoting water and materials efficiency. The bank is currently building a pipeline of projects for the initiative. By working on the ground with companies, partnering with governments on policy, and mixing together policy, finance and technical expertise all in one place, the EBRD has created a recipe for collaborative success that has had a big impact in Russia.

K e y ta k e away s • Working directly with the private sector on the ground is an effective way to uncover the policy challenges that governments most need to tackle. • Bringing corporate and government worlds together to share information and collaborate can help unblock investment.

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in China, the national development and Reform Commission plans development on a rolling five-year cycle.

Rese aRCh findings pRinCiple 3 institutionalise a l o n g -t e R m v i e W Short-term thinking leads to weak policies and perverse outcomes in many cases across the nexus. Where a longer-term view can be institutionalised, there is much more potential for positive and lasting change. CHARACTERISTICS OF INFLUENTIAL ORGANISATIONS WITH A LONGERTERM VIEW

• • • • • • • •

Independent from government Not bound by politi cal ti meframes People who lead or work for the insti tuti ons change roles less frequently than government electi on cycles Direct and frequent contact with ministers and premiers A diversity of backgrounds – academia and business Non-parti san, credible and independent voices Not under the umbrella of any single ministry Clear and focused objecti ves.

CASE STUDIES

France’s Alternative Energies and Atomic Energy Commission (CEA) is mandated to take a long-term view with regard to energy issues relating to the French economy. It provides politicians with an opportunity to

engage with technical and policyrelated issues away from the glare of the media. (See case study 13, p 26). The UK’s Committee on Climate Change is an established independent body set up by and accountable to the UK parliament, to monitor the UK’s progress towards longer-term climate change targets and ensure that they are reached. (See case study 14, p 28 and UK country context p 94-95). The UK government’s Office of Science has a mandate to produce evidence to support longer-term thinking in policymaking. Via its Foresight programme, it has successfully inserted longer-term policy perspectives in areas including flood defences. (See case study 15, p 29). Regarding the water trading that takes place in the Murray-Darling Basin in Australia, the Commonwealth Environmental Water Holder and State Environmental Water Holders keep a long-term perspective on the water requirements of the environment. They are permitted to purchase water

allocations on behalf of nature, for example to enable water-flushing events that mimic the natural flooding cycle. (See case study 2, p 11). In China, the National Development and Reform Commission (case study 10, p 21) plans for China’s development on a rolling five-year cycle. Its most recent plan sets targets for pollution reduction at national and local level – illustrating one of the clearest high level policy signals from the Chinese government to address long-term pollution issues. (See case study 16, p 30). The EU biofuels policy is one example where short-term thinking and a hurried response gave rise to a perverse outcome, in which mandating the use of biofuels led to to an increase in CO² emissions because of deforestation. The policy is now being substantially improved, with a longer time horizon and wider scope. (See case study 17, p 31 and EU regional context p 84-85).

“defining the long term vision is very important. When it comes to energy, there are no short term solutions.’ Bernard Bigot, chairman, Commission on Atomic Energy and Alternative Energies, France

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C a s e s t u dy 13 Fr a n c e ’ s A lt e r n at i v e E n e r g i e s a n d At o m i c E n e r g y C o m m i s s i o n ( C EA ) In 1945, at the dawn of the nuclear age, the French government founded an independent public agency to develop and maintain technical expertise and advise the government on energy and national security. The CEA has now become the government’s main independent policy advisor for nuclear and alternative energies, and was the driving force behind the nuclearisation of France’s energy production. Its funding, some €4.3 billion per annum, comes primarily from the French government, the EU and partner companies. ccording to Bernard Bigot, the agency’s chairman since 2003, the CEA is tasked with providing a long-term vision to the French government, whose own strategic attention span is kept short by election cycles. In Bigot’s view, this function is critical because when it comes to energy, ‘there are no short-term solutions – they all have to be long term’. The CEA has direct, institutionalised access to the government –­ since its foundation, it has run between four and six twohour briefing sessions each year on technical topics such as lessons from the accident at Fukushima. These meetings are attended by the prime minister and other senior ministers,

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and Bigot also has the right to request a meeting at any time with the President. One of the key factors in the CEA’s role is that its advisory sessions take place out of the media glare. Thus, politicians can express ignorance, and seek genuine enlightenment about the scientific and technological evidence behind the policies they design. The CEA also engages with business partners, collecting their insights and concerns about policy ideas and incorporating them into policy proposals it submits to the government.

Key Takeaways • Politicians need opportunities to engage with scientists around the evidence that they produce out of the glare of the media. • An organisation with deep technical expertise, that is independent of government but in frequent contact with high-level ministers can develop and promote a longer-term strategic view.

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C a s e s t u dy 15 the uK’s Roll out o f d e pa R t m e n ta l Chief sCientifiC adviseRs aCRoss goveRnment d e pa R t m e n t s

C a s e s t u dy 1 4 the uK’ s Commit tee o n C l i m at e C h a n g e The UK was the first country in the world to introduce legally binding targets on climate change, in 2008. As part of this it created an independent body, the Committee on Climate Change (CCC), to work with and monitor future governments to ensure those targets were reached. ince then the committee has played a key role in that effort, gaining the support and trust of businesses and consumers with its independent voice, always taking the longer view while not being afraid to challenge government policy when it believes it runs against achieving the UK’s climate targets. As well as providing independent advice to the government, the committee is statutorily empowered to report directly to the UK parliament, laying before it each year a report setting out the committee’s views on the country’s progress towards meeting fiveyear carbon budgets and its overall 2050 target. These five-year targets provide a good means of tracking towards what could otherwise seem like a distant goal. The committee also presents its views on what was or was not done to achieve these targets, and this gives the committee a powerful and influential position in the public discourse. With its high level board and the credibility it has built, the committee has increasingly intervened in public debates as an independent voice, speaking out about the relatively low cost of investment in clean energy sources, bringing realism to the role of natural gas in de-carbonisation, and independently assessing the overall role that shale gas can play in achieving energy security and emissions targets. Where it has seen that commitments

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“the idea behind the uK’s carbon budgets is to give a long enough lead time for people to be able to make proper business decisions.” Lord Deben, chairman of the UK Committee on Climate Change

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most Chief sCientifiC adviseRs Continue to Be aCtive in ReseaRCh – this is ConsideRed an advantage.

to investing in measures to reach climate change targets may have been flagging, it has brought together broad industry coalitions to lobby government and keep it on a road to de-carbonisation. The committee always backs its interventions with clear and independent analysis, which has gained the respect of stakeholders across the UK. The CCC plays a unique role in bringing an independent, expert and credible voice, backed by powerful legislation, to the policymaking and implementation process on climate change, one that crosses all silos while having a clear focus on achieving carbon reduction targets on time.

K e y ta K e away s • Establishing an independent body that is not beholden to short electoral cycles can help ensure long-term policy targets are met. • A credible independent voice in policy debates can bring the focus back to evidence-based policymaking and decision-making and away from ideological wrangling.

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In 2002, the UK government’s cross-cutting review of science recommended that chief scientific advisers (CSAs) should be appointed to all major science-using departments. t was agreed that government departments needed scientific advice in order to underpin their policymaking and regulatory activities, and, in some cases, to deliver programme objectives. Such advice, it was stated, could be provided by external or internal experts, or informed by the output of research programmes commissioned by the departments. The presence of CSAs in all the main science-using departments was seen as critical to the successful delivery of the government chief scientific adviser’s role (GCSA). CSAs would perform similar functions within their own departments to those performed by the GCSA in relation to government as a whole. As a result of this, the UK government has taken further steps to harness and direct research and innovation to improve its own policy decisions. For example, the Foresight project on flooding and coastal defence produced a challenging and long-term (30 to 100 years) vision for the future of flood and coastal defence in the whole of the UK and took account of the many uncertainties. It was launched in April 2004 and has been fundamental in shaping government policy in this area ever since. This approach has been

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adopted in certain regions in China, for example by the Taihu Basin Authority, Shanghai. While much progress has been made in implementing departmental CSAs, it did take until 2011 for the Treasury to appoint a CSA, thus ensuring that all major departments had a scientific voice in all major departments. The majority, though not all, of departmental CSAs are parachuted into government departments and continue to be active in research. This is considered to be an advantage and helps demonstrate credibility.

K e y ta K e away s • Government departments need scienti fi c experti se for wide variety of reasons – to interpret scienti fi c issues simply and clearly; to harness and synthesise existi ng research; and to provide an evidence based perspecti ve on longer-term policy objecti ves.

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Case study 17 eu poliCy on Biofuels In 2009, the EU set a target that ten per cent of transport fuel should be from biofuels by 2020. As policy implementation mechanisms are diverse and decentralised, each country has flexibility to meet their target within their own domestic context. Mandatory targets have been approved voluntarily by several EU member states, but these mandatory targets are national initiatives and not an obligation from the EU.

C a s e s t u dy 16 C h i n a’ s f i v e -y e a R p l a n s Since 1953, China has developed five-year plans to support its economic development. These plans seek to use available resources to deliver fast economic growth. The plan is rolled out by the central government, and the NDRC (see case study 10, p 21) is mainly responsible for drafting it. Following the agreement of the national plan, detailed economic development guidelines are made for all regions and for different sectors. hina is now implementing the twelfth five-year plan and, to support the development of a market economy, this plan is geared around providing guidelines and direction rather than detailed specifics, to try to encourage some market flexibility. The first eleven five-year plans have lifted many Chinese people out of poverty. However, in more recent times the question of sustainability has become an issue as China faces the challenges of serious pollution, intensive energy use and resource depletion. So the twelfth five-year plan seeks more balanced development and includes measures to protect

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the environment. Three of the seven prioritised industries for development relate to sustainable growth: energy conservation and environment protection, new energy and clean energy vehicles. Key targets include a decrease in energy consumption per unit of GDP by 16 per cent between 2010 and 2015; and a decrease in CO₂ emissions per unit of GDP by 17 per cent (see table below). Specific plans for regions and industries have also been established to ensure the delivery of overall targets.

BINDING TARGET

CHANGE OVER 5 YEARS (%)

Decrease in water consumpti on per unit of value-added industrial output (%)

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Increase of non-fossil fuel usage in primary energy consumpti on (%)

3.1

Decrease in energy consumpti on per unit of GDP (%)

16

Decrease in CO₂ emissions per unit of GDP (%)

17

Forest coverage rate (%)

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o achieve the target in the EU most of the fuel has to come from imports. This policy initially hit problems when it became apparent that it had contributed to deforestation in South East Asia; and it also became known that some biofuels consumed more energy during production than their combustion actually provided. Furthermore, it became clear that the emissions resulting from indirect land use change (eg deforestation) added to the carbon required to produce the fuel; and the growth of biofuels has also been linked to increased food prices and inappropriate use of scarce water resources. To mitigate these problems, the EU launched a quality certification process around sustainability factors in mid-2010 and in early September 2013 member states agreed to a six per cent cap on the contribution of biofuels to the renewable transport energy target of ten per cent by 2020. MEPs also voted to recognise the link between biofuel production and the destruction of forests and other landscapes, but not until 2020 when legislation that accounts for the impact of emissions resulting from indirect land use change comes into effect. Finally MEPs also backed a two-and-a-half per cent target for second generation biofuels – made from non-food sources such as agricultural waste, sewage and algae. The process of policy development

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K e y ta K e away s • China has made a strong commitment to addressing polluti on issues while seeking to conti nue to achieve signifi cant economic development. • Central and local government must work together to achieve nati onal targets. • The fi ve-year plan approach enables China to have a balanced trajectory towards long-term policy goals, while also adjusti ng its course according to prevailing circumstances.

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in this area has been hugely complex for the EU, which has faced a vocal NGO lobby, while seeking to work across their own directorates and bureaucracies. The recent vote is a change in direction from the original target, but is based on an acknowledgement that the target in place is not achieving the low-carbon impact that was envisioned. The EU is developing a biofuel industry reliant on policy interventions, subsidies, tax credits and tariffs. To date, it has failed to provide a clear, long-term vision and is too focused on short-term quantitative targets. This risks stifling innovation and investment and the development of second and third generation biofuels.

the pRoCess of poliCy development in this aRea has Been hugely CompleX foR the eu.

K e y ta K e away s • S hort-term thinking and hurried policy decisions made in the absence of robust science can result in perverse outcomes. • Local policy decisions can have global impacts. • Biofuels policy necessarily cuts across nexus issues and therefore must be considered in the context of land use, food security and water availability.

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the World Resource institute has developed aqueduct, a global water risk mapping tool to encourage the use of ‘radically transparent data’ on water resources.

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Rese aRCh findings pRinCiple 4 C R e at e a n d u s e R e l i a B l e souRCes of evidenCe Data provided by NGOs and academic institutions can significantly influence government activity by allowing policymakers to understand the issues at hand and monitor the impact of policies they develop in response. CHARACTERISTICS OF THIS ACTIVITY:

• • • • • • •

There is a clear strategic goal Academics and other independent researchers are involved The private sector is engaged Informati on is independent, transparent and verifi able Informati on is provided in a digesti ble format, with clever visualisati on methods Simplicity – where data requirements of legislati on are too complex, implementati on stalls The right data in the right form can help break through politi cal inerti a and highlight areas that may otherwise be neglected.

CASE STUDIES:

China’s policy institute at Quinghua University has worked alongside the Chinese government to seek to demonstrate the value of independent, reliable data – and its climate policy initiative became the Chinese

government’s first independent internal auditor of energy policy. (See case study 18, p 34). The Institute of Public and Environmental Affairs (IPE) in China has developed two pollution databases, one in relation to water and one to air. They work to expand environmental disclosure, promoting public participation in environmental governance. Their data had significant impact when highlighted by Sina Weibo bloggers, lobbying government to share more transparent data. They also work with businesses to improve their environmental impact. (See case study 19, p 35 and 24, p 46). The World Resource Institute has developed Aqueduct, a global water risk mapping tool that helps companies, investors, governments, and other users understand where and how water risks and opportunities are emerging worldwide. It is seeking to encourage the use of ‘radically transparent data’ on water resources,

rather than warnings about scarcity, to break through political inertia. (See case study 20, p 36). The UK government includes an independent scientific advisor in every department to encourage policymakers to engage with and take account of scientific evidence. (See case study 15, p 29). A lack of reliable evidence can have a negative impact. An illustration of this is the EU’s policy on biofuels, which ended up contributing to deforestation in South East Asia. (See case study 17, p 31).

“it’s very important to have very good information and data. public policy changes when people believe very strongly and are committed to change.” Sunita Narain, director general, Centre for Science and Environment (CSE); and director, Society for Environmental Communication

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“the public needs more access to data. it’s good that the government has begun releasing data about air quality; i want to see the same for water. public access to this sort of data could generate a movement and help solve the problem.”

C a s e s t u dy 18 C h i n a’ s C l i m at e p o l i C y i n i t i at i v e at q u i n g h u a univeRsit y

Ma Jun, Founder and director, China Institute of Public and Environmental Affairs

In 2010, Qinghua University school of public policy management launched the Climate Policy Initiative (CPI) to provide independent data and analysis on the impact of national carbon-reduction policies. he Chinese government has taken strong action to combat climate change in recent years, including the ‘Top 1000’ initiative working with the most prolific carbon-emitting companies to limit emissions. While data on climate change and the impact of measures to reduce emissions were being collected by the government, the CPI became the first independent internal ‘auditor’ of energy policy. For many reasons, the availability and reliability of data presents a significant challenge in assessing how China is progressing in its climate change goals. The overall structure of government – with data collected through several different levels before being collated centrally – means that data is collected and released very slowly. The CPI was established to address these issues, to collect data independently from government and hold the government to account, through reports on specific issues around low-carbon and renewable technologies, as well as producing an annual review of low-carbon development in China. In addition, the CPI’s professors from the school of public policy

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management have begun to work closely with central and local government on developing low-carbon strategies. In 2009, for example, they supported the Baoding government in developing its first low-carbon city development plan, and have since worked with municipal governments in Gongdong, Chongqin and Yunnan. Although the CPI has attracted media attention for questioning carbon-reduction policies, it has successfully worked with government to understand issues of data reliability and availability and improve them collaboratively.

K e y ta K e away s • Independent bodies perform a fundamental role in independently assessing policy performance. • Government can harness that independent experti se to develop and incrementally improve their acti viti es.

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C a s e s t u dy 19 C h i n a’ s i n s t i t u t e o f p u B l i C a n d e n v i R o n m e n ta l a f fa i R s WoRKing With unile veR and a p p l e o n s u p p ly C h a i n s

While data on Climate Change and the impaCt of measuRes to ReduCe emissions WeRe Being ColleCted By the goveRnment, the Cpi BeCame the fiRst independent inteRnal auditoR of eneRgy poliCy.

The Chinese Institute of Public and Environmental Affairs (IPE) was established in 2006 as a vehicle to provide public access to information on pollution in China. It has developed two pollution databases (water and air) to monitor corporate environmental performance and to facilitate public participation in environmental governance. ts aim is to expand environmental information disclosure to allow communities to fully understand the hazards and risks in the surrounding environment, thus promoting widespread public participation in environmental governance. The IPE is a member of a coalition of NGOs throughout China, promoting a global green supply chain by pushing large corporations to concentrate on procurement and the environmental performance of their suppliers.

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UNILEVER Unilever was one of the corporates added to IPE’s polluters list in June 2007, following the discovery of high levels of pollutants in water discharges from their largest consumer product manufacturing facility in Hefei City. Unilever was quick to facilitate an independent audit to understand the environmental issues, which pointed to the main problem being the large amount of waste water

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discharged from the regular cleaning of the production line. Reducing the number of different products switched and manufactured each day on the production line enabled Unilever to reduce the levels of pollution to below the legal standard and to reduce its water consumption by 25 per cent. APPLE Apple was one of 29 companies named in a 2010 Green IT report on heavy metal pollution in China, produced by IPE. In this case, Apple was the only company listed that did not respond to the study, due to a policy not to disclose information about its suppliers. After 18 months of the ‘Poison Apple’ campaign, which involved the release of a report and video material of harmed employees, Apple approached Chinese environmental groups and began to drive its suppliers to clean up their operations.

K e y ta K e away s • The provision of data enables NGOs not only to play an acti vist role but also to work collaborati vely with businesses and policymakers to achieve change on nexus issues.

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C a s e s t u dy 2 0 Aqueduc t Alliance p r o j e c t, W o r l d R e s o u rc e s I n s t i t u t e The Aqueduct Alliance project is an online water risk measurement and mapping platform. It was developed by the World Resources Institute (WRI) to provide information on key water supply and demand hotspots, and to enable decision-making around scare resources. The platform offers the opportunity to understand water constraints associated with particular geographies and therefore allows a more informed response by businesses, governments and NGOs. he project began in 2009, based initially on maps donated by Coca-Cola, which it had used to map water risk in relation to its bottling plants. In 2013, the project launched the Water Risk Atlas, which uses a peer reviewed methodology and the best available data to create highresolution, customisable global maps of water risk. The provision of this information on current water resources and future demand enables the private sector to assess and manage water risk at the sub-basin level; the public sector to develop more effective investment programmes and policy reforms; and the investment community to assess more accurately companies’ water risks. Corporate partners involved in the project include Bloomberg, Dow Chemical, DuPont, General Electric, Goldman Sachs, John Deere, KimberlyClark, P&G, Shell, Talisman Energy, The Coca-Cola Company, United Technologies and Veolia. Funding also

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comes from the Dutch and Swedish governments and the Skoll Global Threats Fund. The tool is readily available on the internet using an intuitive visualisation method that encourages widespread use.

K e y ta k e away s • The provision of robust, consistent data can play a fundamental role in addressing nexus issues. • There are opportunities for business and government to collaborate on developing protocols around the provision of data for a range of nexus problems. • Intuitive visualisation improves the spread and use of the data.

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ReseaRCh findings

Rese aRCh findings pRinCiple 5 shaRe KnoWledge to spRe ad and sC ale p o l i C y i n n o vat i o n s

south africa’s Reippp has been influenced by community engagement models for wind farm developments in denmark, germany and the uK.

Ideas can transfer from one region or country to another, and are most successful when the transfer takes account of local context and nuance. However, this is often hampered by a number of variables, for example a lack of information or relationships between relevant players, or a lack of incentives for originators to capture or codify their practice and transfer lessons. This is one area in which the policy shapers approach could play a very important role, by building relevant relationships and providing a rich database of policies and players. CHARACTERISTICS OF SUCCESSFUL SPREADING AND SCALING OF POLICY INNOVATIONS

“California’s low-carbon fuel standard has generated a lot of interest outside the state. other states in the us, British Columbia and the european union have all adopted similar standards.”

• • • • • •

An experimental and collaborati ve outlook Willingness to learn from both successes and failures in other regions A clear understanding of local context and nuance in each region Adaptability within the initi ati ve itself A ‘policy entrepreneur’, either an individual or an organisati on, driving the process Local capacity building as part of the process.

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In China, across a number of initiatives, we repeatedly found a deep willingness to learn from activities around the world – both successes and failures – alongside a clear desire to adapt them to local conditions and

learn how to make them work for Chinese people. The emissions trading scheme is a good illustration of this. (See case study 3, p 12). In South Africa, the adoption and development of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP), has been influenced by community engagement models for wind farm developments in Denmark, Germany and the UK. (See case study 21, p 40). River catchment cards, developed for important water catchment areas in Queensland, combine individual metrics on key areas of data to create an overall grading for a river system, to enable the monitoring and impact of policy activities. This approach has now been transferred to the Gui River, the Pearl River and the Yellow River in China. (See case study 22, p 41). The Alliance for Water Stewardship (AWS) is developing the world’s first

International Water Stewardship Standard in compliance with the ISEAL code of good practice. Their standard will be applicable to all sectors and geographies, but will be complemented by local, regional and sector-specific content to ensure it is adaptable to regional conditions. The standard is currently in beta mode and is being tested around the world. The UK’s Committee on Climate Change plays a significant role in influencing activities around the world in relation to climate change, sharing their activities with countries including South Africa, China, Brazil and Colombia. (See case study 14, p 28)

Dr Sonia Yeh, research scientist, Institute of Transportation Studies, University of California, Davis

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Case studies

Case studies

C a s e s t u dy 21 s o u t h a f R i C a’ s R e n e W a B l e e n e R g y independent poWeR pRoduCeR pRoCuRement pRogRamme Spurred by a major energy crisis in 2008, South Africa has tried a series of initiatives designed to kick start large-scale renewable energy development. The country’s energy minister has approved USD 5.4 billion for 28 wind, solar and geothermal projects that will add five gigawatts (GW) of new renewables capacity to the grid. These projects represent the first round of five auctions in the country’s renewable energy independent power producer programme (REIPPP), with generation to become operational between 2014 and 2016. he REIPPP procurement programme, launched in August 2011, provides for the procurement of energy from renewable energy sources totalling 3,625 megawatts, limited to onshore wind, solar photovoltaic, concentrated solar power, biomass, biogas, landfill gas and small hydropower technologies. Apart from diversifying South Africa’s generation mix, this programme’s objectives include localisation, minimum economic participation by individuals historically disadvantaged by apartheid laws, minimum economic participation by local communities, job creation and skills transfer. This renewable energy initiative is twinned with the social and economic development of the country as the government also wants to use the

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REIPPP programme to ensure that local communities benefit through employment and as shareholders in these renewable projects. Bids put forward by independent power producers had to show how their project would deliver social and economic development for South Africans. Only those with acceptable social and economic plans could advance to have their projects judged on feasibility and price. The idea to use renewable energy projects for local community development came from community wind farm developments in Denmark, Germany and the UK where local community members have a significant, direct financial stake in the project. For example, in Denmark, some 100,000 families belong to wind turbine cooperatives, which have

installed 86 per cent of all the wind turbines in Denmark, incentivised by tax exemptions. Wind power has gained very high social acceptance in Denmark, with the development of community wind farms playing a major role. In South Africa, the situation is different as most local communities are unable to finance project investments. Here, power project developers are required by the government to invest in the local community. For example, community trusts are created that receive revenues from the renewable energy project that are then invested in the local community. This also allows poor communities access to development finance ie, they will be able to borrow against project revenues.

this fleXiBle and Responsive appRoaCh led to the RepoRt CaRd system Being adopted By Chinese authoRities in 2011.

K e y ta K e away s • Community engagement concepts can translate powerfully between very diff erent geographies and social conditi ons. K e y ta K e away s • Measuring the performance of policies can be simple and transparent without compromising technical rigour. • Bringing in all stakeholders to decide on policy performance metrics leads to real engagement and a monitoring system that everyone can understand and respect. • The report card system is an approach that could be replicated easily across the globe and used as a model for monitoring policy performance across the nexus.

this ReneWaBle eneRgy initiative is tWinned With the soCial and eConomiC development of the CountRy.

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C a s e s t u dy 22 R i v e R C at C h m e n t R e p o R t C aRds in austRalia The state of Queensland in Australia has created annual report cards for its river and water systems. uthorities introduced the report cards for important water catchments, monitoring key ecological indicators from the level of aquatic macro-invertebrates and fish, to nutrient cycling and pH levels. All these indicators are scored separately against the levels expected in a healthy water system, to show whether the river or marine system’s health is improving or deteriorating. The report card then combines all this technical data and gives each river system a single grade, A+ to D-, so that all stakeholders can see whether

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policies are having a positive overall impact or not. In addition, Queensland involved all major stakeholders in choosing the indicators that would give each system its grade. This flexible and responsive approach led to the report card system being adopted by Chinese authorities in 2011 to monitor major river systems including the Gui river, the Pearl river and the Yellow river. The scorecards measure Chinese river catchments’ health using a range of indicators and grade their condition from ‘critical’ to ‘good’ under various categories.

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A media campaign by the government of the city of Cape Town has reduced the city’s energy use by 20 per cent.

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RESE ARCH fInDInGS PRInCIPLE 6 USE SmART C A m PA I G n I n G Policymakers and NGOs have developed effective ways of communicating and campaigning to achieve impact in water-energy-food-climate nexus areas. CHARACTERISTICS OF SMART-

CASE STUDIES

CaMPaIGNING

The Sierra Club in the US runs a ‘Beyond Coal’ campaign, which seeks to replace coal with clean energy by retiring existing coal plants, and by working to ensure new coal plants are not built. Their activities illustrate a smart campaigning approach, with the clear development of locally-targeted strategies ranging from focusing on air pollution or the market share that coal is taking from clean energy to compliance violations. (See case study 23, p 44). The Institute of Public and Environmental Affairs (IPE) seeks to develop a dialogue with large corporates and encourage them to clean up their supply chains. (See case study 19, p 35). Sina Weibo, the Chinese equivalent of Facebook and Twitter, became the forum in which air pollution data independently produced by the IPE was compared with governmentproduced data. The disparity between the two was widely questioned by bloggers and within the space of

• • • • • • • • •

Targeted approaches to leverage the biggest infl uence on diff erent stakeholders and mobilise local coaliti ons A focus on reducing polluti on, rather than punishing the polluter Strategic use of signifi cant grassroots base Emoti ve and positi ve messaging that speaks to values more than facts Consistent simple messages that reinforce the policy Compelling communicati ons materials Use of a complementary range of media channels The use of behavioural economic thinking and appropriate incenti ves eg, informing individual households about how their water or energy use compares to their neighbours Authoritati ve and trusted messenger, including the use of locally-loved champions.

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two weeks the Chinese government provided more detailed transparent data on air pollution. (See case study 24, p 46). Through an effective media campaign, with the use of behavioural economic elements, the ‘Target 155’ programme in the state of Victoria in Australia saved more than 53 billion litres of drinking water. (See case study 25, p 47). A similar media campaign by the government of the city of Cape Town has reduced the city’s energy use by 20 per cent compared to businessas-usual and by an absolute value of two per cent since 2007. The city used local champions and a set of simple tips for reducing energy use on a range of media from newspaper and radio adverts through to reproducing tips on citizens’ rate bills. They are now using a similar media approach to encourage the take-up of accredited solar water heaters. (See case study 26, p 48).

“we can’t go against human values even if they conflict with evidence. we need to reach people at the emotional level.” Professor John Thwaites, chairman, Monash Sustainability Institute, Monash University; and chairman, National Sustainability Council, Australia

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C A S E S T U DY 23 SIERR A CLUB’ S B E YO n D C O A L C A m PA I G n The goal of the Beyond Coal campaign is to replace coal with clean energy, by helping local communities advocate the retirement of old and outdated coal plants and working to prevent new coal plants from being built. The Sierra Club is also seeking to put an alternative in place by making sure clean energy solutions create jobs and save money. pecifically the campaign aims to: • Retire one-third of the nation’s 500 coal plants by 2020 • Replace the majority of retired coal plants with clean energy solutions such as wind, solar and geothermal • Keep coal in the ground in places like Appalachia and Wyoming’s Powder River Basin, so that it isn’t exported and burned overseas. The campaign started in 2002, as a small group of volunteers and staff in response to a closed door meeting between the Bush administration and the coal industry, in which it was agreed to build 150 new coal-fired power plants. To achieve their ends, the campaign team work with relevant local and national government, local communities, the labour unions, NGOs and businesses to influence key decisions. They do this through law suits, mobilising large local support or lobbying government officials. Their campaign seeks to educate people, change business attitudes and apply

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“In Iowa we were talking about coal taking away market from wind developers. In Kansas it was about clean air. In Texas it’s about water issues. In the Pacific northwest it’s about climate change. You tailor the message to the audience.” Bruce Nilles, Senior director of the ‘Beyond Coal’ campaign, The Sierra Club

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political pressure. They seek to work with those who may oppose them, for example the unions, and with other businesses whose interests may align with reducing the role of coal, to build a coalition of support and influence. The Beyond Coal campaign works at a local level through its 15,000 plus grass-root supporters. They engage on the basis of information first, and use campaigning activities only if necessary. The campaign teams adapt their messages and materials according to the key concerns of the people they want to influence. For example, in some geographies they persuade by talking about the market share that coal is taking from new energy solutions, in other areas they talk about clean air, in others about compliance violations. To date the campaign has resulted in 149 power plants (or 58.5 megawatts) and 423 dirty boilers being retired.

KEY TAKEAWAYS • Stakeholder engagement works best through carefully targeted communicati ons around tangible issues. • Making a credible case requires stakeholder educati on.

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TO DATE THE CAmPAIGn HAS RESULTED In 149 POwER PLAnTS AnD 423 DIRTY BOILERS BEInG RETIRED.

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EvERY DAY mORE THAn 100 mILLIOn mESSAGES ARE POSTED On SInA wEIBO, wITH THE mAJORITY Of USERS BEInG UnDER THE AGE Of 30.

C A S E S T U DY 24 C H I n A’ S A I R P O L LU T I O n I n D E X A n D T H E I n f LU E n C E O f S O C I A L m E D I A ( S I n A w E I B O ) Sina Weibo launched in China in August 2009 and now, with more than 500 million users, is the biggest social media tool in China. Every day more than 100 million messages are posted on the site, with the majority of users being under the age of 30. t has a platform through which the public has been able to exert influence on government policies relating to the environment. Many government officials now have Sina Weibo accounts and are required to regularly track activity on this medium. An example of the power of Sina Weibo is its impact on air pollution in Beijing. In 2000, the Chinese government began to publish air quality data for 41 major cities in China. By 2008, the Ministry of Environment Protection monitored 86 of its major cities and published the API (Air Pollution Index), but only suspended particles larger than 10 μm aerodynamic diameter (PM 10), far off the particle size, 2.5 µm, which can be inhaled and enter the blood stream. In the winter of 2011, the US Embassy in China also started to publish air quality

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data, including 2.5 µm, on Sina Weibo. During a difficult winter in November and December 2012, Sina Weibo quickly became the forum in which the two sets of data were compared, and the public widely questioned the disparity between them. Within a matter of weeks the Chinese Ministry of Environment Protection decided to monitor and publish 2.5 µm data for 163 major cities in China, formally launching this on 1 January 2013. Since the start of 2013, Chinese cities have embarked on a series of policy initiatives to address air pollution. Post script: In the last few months there has been more controlling of social media channels by government, though this may be a temporary measure.

K e y Ta K e away s • Social media is a catalyst for policy change and a medium for the exchange of policy ideas. • The Chinese government is using social media in nuanced ways to monitor and respond to issues of public concern.

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C A S E S T U DY 25 A U S T R A L I A’ S TA R G E T 155 P R O G R A m m E In response to the drought that hit south-eastern Australia between 2000 and 2010, the government of the state of Victoria engaged in an innovative collaboration with the Shannon Company, a media and behavioural science company, in an effort to raise public awareness about water scarcity and encourage water conservation. ne of the most prominent initiatives that stemmed from this collaboration, Target 155, asked Victorians to reduce their water consumption to 155 litres per day. The campaign, which operated between December 2008 and February 2011, encouraged Victorians to take fourminute showers, install water-efficient showerheads and keep buckets in their showers to capture water while the shower was warming up for later use in the garden. It successfully effected behavioural change by utilising principles of behavioural science by, for example, informing people how their water usage compared with their neighbours. Key to the venture was a set of simple tips for water saving, coupled with entertaining, lively and positive advertising designed to appeal to the Australian sense of humour. A joint report by Victoria’s three main water retailers credited the policy with saving

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more than 53 billion litres of drinking water over the programme’s lifetime. Moreover, although the campaign was targeted at domestic users, the social norm of saving water became so embedded in popular culture that businesses also significantly reduced their water use, to protect their reputations. The drought finally abated in 2011, and daily water use has subsequently increased to about 180 litres per capita in 2012. But Target 155, one of the most inexpensive measures Victoria implemented during the drought, created widespread social awareness of water scarcity and changed Victorians’ behaviour. Indeed, John Thwaites, chair of the Monash Sustainability Institute, calls this type of behaviour change ‘fundamental to what we’re going to have to achieve in climate change and managing water and resources’.

K e y Ta K e away s • E ducati on and social awareness can be a powerful lever to achieve change on nexus issues. • There are opportuniti es for policymakers to take account of the latest thinking in behavioural science to achieve change on the ground. • Positi ve and entertaining messages advocati ng simple steps are much more likely to have an eff ect than those that warn of impending doom, or are too complex.

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C A S E S T U DY 2 6 S Av I n G E L EC T R I C I T Y In C APE TOwn , SOUTH AfRIC A Over the past three years, Cape Town’s department of energy and climate change has been running a major electricity savings campaign. Tariffs had recently risen significantly so the department devised a slogan that resonated strongly with the city’s populace: ‘Electricity is expensive; saving is simple’. he campaign included a website, posters, work in schools and an energy-efficiency forum involving the commercial sector. All materials used a consistent set of simple electricity-saving tips with straightforward words and logos. The department offered training to teachers, using a pack that was specially designed to fit in with the curriculum. They also worked with an inventive local media company to design lively, positive and entertaining newspaper and radio adverts using locally loved champions – for example a popular Cape Town comedian – as spokesmen to convey the messages. On top of this, emotive messaging was adopted, which hinted that unfettered demand for electricity would require ugly new power stations in the heart of the city. Posters showed cooling towers photo-shopped into some of Cape Town’s most beautiful areas, with the slogan ‘Electricity could be more expensive than you think’ and a 10-metre inflatable cooling tower was parked in different parts of the city. This housed an advice booth inside, offering simple tips for how to curb

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electricity usage. The department also experimented with including information on average local usage on some rate bills, leaving others without. Where local average usage was included, household reductions were generally much higher. The campaign has been highly successful. A recent survey shows that 53 per cent of citizens remember the tips and logo; consumption is 19.8 per cent below business-asusual projections (made in 2007); and two per cent below 2007 levels, despite massive growth in the city’s population. The campaign worked in part because of the trust the authorities have built over time with citizens. Surveys show that city authorities are perceived as being trustworthy and having local interests at heart, in contrast with national authorities and businesses. Also important was the practical nature of the advice; clever use of behavioural science; and positive, entertaining messaging. The materials used in the campaign have been made available to other cities, and Durban is currently working on a similar approach.

K e y Ta K e away s • Simple, positi ve messaging using a combinati on of straightf orward facts and emoti ve language works. • The use of trusted messengers – locally loved champions and a local authority perceived as having citi zens’ interests at heart – is eff ecti ve. • Clever use of behavioural science approaches can be a powerful tool for change. • The use of multi ple media channels to reinforce the message, including involving schools and professional educators in the campaign, can be impactf ul.

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“80 per cent of the journey is having really good, committed, passionate people to work with.” Sarah Ward, head of energy and climate change, City of Cape Town

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RESEARCH fInDInGS

The Snow Land Great Rivers Environment Protection Association in China illustrates the value of building local capacity to sustain and protect the local environment.

RESE ARCH fInDInGS PRInCIPLE 7 S T R E n GT H E n LO C A L C A PA C I T Y T O D E L I v E R A lack of capacity at local level, especially in developing countries, can block effective implementation of otherwise well-developed national policies. The solutions are to work on building local capacity in partnership with NGOs and businesses, and ensure that capacity limitations are reflected in the policymaking process. CHaRaCTeRIsTICs OF INITIaTIVes THaT BUILD CAPACITY

• • •

They are developed over ti me with a long-term commitment to local community They can involve government, businesses and NGOs They tend to be NGO-led and involve a wide variety of local stakeholders.

CASE STUDIES

“You need a policy system in which the broad parameters are spelled out, providing a framework. Then you must give attention to implementation capacity.” Milla McLachlan, co-founder of the Southern Africa Food Lab; and professor, division of human nutrition, faculty of health sciences, Stellenbosch University, South Africa

POLICY SHAPERS

Many of our conversations with policymakers and influencers in South Africa revolved around the challenges of limited local capacity and their implications for effective implementation. The National Water Act is a good example of a well thought through policy initiative that was hampered by lack of local capacity to enable its delivery.

(See case study 27, p 53 and South Africa country context p 92-93). The Snow Land Great Rivers Environment Protection Association in China illustrates the value of building local capacity to sustain and protect the local environment. (See case study 28, p 54). In China, the Institute for Sustainable Communities (ISC) is an example of an organisation that is working hard to build local capacity and understanding of sustainability issues in government, in business and amongst the public. (See case study 29, p 57). The Mahila Kisan Sashaktikaran Pariyojana programme in India shows how local institutions can deliver knowledge about sustainable agricultural practices to disadvantaged groups, such as women farmers. (See case study 30, p.58)

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C A S E S T U DY 27 T H E fA I L U R E O f S O U T H A f R I C A’ S n AT I O n A L w AT E R A C T The failure of South Africa’s National Water Act illustrates what happens when policymakers do not consider implementation factors when developing policy. The goal of the National Water Act, enacted in 1998, was to reform discriminatory laws relating to water resources established in the Apartheid era. It was designed to provide a framework to protect water resources against exploitation and ensure the sustainable use of water for social and economic development, promoting the integrated management of water resources with the participation of all stakeholders. he Act was viewed as being one of the best legislative frameworks in the world – it was very innovative in the way that it connected the different water challenges in South Africa. It institutionalised the concept of the water ecological reserve – enshrining the use of water for the environment. It also institutionalised ‘free basic water’ – whereby each citizen has the right to 25 litres of free water per day (or the equivalent household limit) and it attempted to decentralise water management and mandated stakeholder participation in integrated water development. Catchment management agencies (CMAs) were the vehicles set up to manage water licences and facilitate stakeholder engagement. However, as of 2013, only two of the originally proposed 19 CMAs had

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“The national water Act is so innovative that no one can implement it. Policies need to be developed with the capacity of the sector in mind.” Dr Inga Jacobs, research manager, Water Research Commission

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been set up. There is a huge backlog in granting water licences, presenting a major issue for business and 95 per cent of water resources remain in the hands of the white population. The main problem with the Act was that it was written by a very smart group of technicians who relied a lot on science but had no administrative experience. Key issues were: • sectoral implementation capacity considerations were not taken into account • inadequate implementation procedures and guidelines • lack of co-ordination over implementation, between national government and local governments – implementation was not phased • inadequate data to establish environmental and social reserves and baseline allocation levels for water users, leading to over

allocation in most catchments • failure to recognise real boundaries and motivations of different actors; and understand who would benefit and who would lose out • information asymmetry between different actors. Subsequent legislation has sought to address these issues and institute a learning-by-doing approach. A compulsory licencing pilot, managed by the Department of Water Affairs, is taking place in the Mhlathuze catchment in KwaZulu-Natal. In the pilot there is a major focus on stakeholder engagement and the development of support systems for allocation and water management practices has been critical. Full roll-out and implementation of the CMAs is scheduled to take place over the next ten years.

K e y Ta K e away s • Policy needs to defi ne interventi ons at diff erent levels of scale – nati onal level policy can be fantasti c but not implementable at a local level. • Good policy should take the capacity of the sector into account and be co-developed with an implementati on plan.

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C ase study 28 T he S n o w L a n d G reat R i v er S E n v iro n m e n t P rotectio n A ssociatio n , T H E Q I N G H A I -T I B E T P L AT E A U , C hi n a Established in 2002, the Snow Land Great Rivers Environment Association is a community-led NGO combatting the effects of climate change and unsustainable agricultural practices in the remote Sanjiangyuan area of the southern Qinghai-Tibet Plateau. ccupying an area of 363,000 square kilometres, and situated 4,000 metres above sea level, the area is home to a diverse array of natural habitats – including lakes, rivers, pastures, forests and wetlands. The effects of global warming have had a significant impact on the local environment, and unsustainable practices have contributed to the degradation of land and the endangerment of many rare species of plants and animals. Illegal gold prospectors and poachers in the 1980s caused significant damage to the local environment, as well as driving the Tibetan antelope to near extinction. More than 30 per cent of the area’s grasslands have been turned to desert through the erosion of top soil and the overherding of yaks, leading to significant levels of poverty amongst the area’s 200,000 inhabitants. Stemming from initiatives in the 1990s to catch illegal poachers, the Snow Land Great Rivers Environment Protection Association was founded

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by local former teacher Hashi Tashi Dorjee to support communitybased responses to water resource protection, grassland management and supporting biodiversity. The association aims to educate and support the local population through ways that are appropriate to them, as opposed to nationally advocated solutions such as the creation of private land ownership and the movement of indigenous populations to other areas. This approach also looks to develop local methods and solutions, such as ‘tent schools’ set up to teach environmental protection practices, and mobile vans used to meet and educate local herders. Despite receiving no financial support from the government, the initiative has focused media attention of the issues facing the local population, and been widely acclaimed in China and internationally as an example of a successful locallydriven approach to development and sustainability.

K e y Ta k e away s • The importance of NGOs adopting a local approach to build a long-term approach to change. • The importance of working with communities to build trust and understand their values. • The importance of educating the local population and instilling values and approaches to maintain and maximise NGO efforts.

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C ase study 29 T he I n stitute f or S ustai n able C o m m u n ities , C H I N A Sometimes the key to unlocking the potential for change can be as simple as showing people what they can achieve together, by revealing the art of the possible. A top-down system has been at the heart of China’s economic transformation but now that the negative environmental side effects of industrialisation are being felt in its industrial heartlands, solutions will need to be developed locally, by small businesses, local governments and communities. This is where the Institute for Sustainable Communities (ISC) comes in. he ISC is working to build the capacity of Chinese companies, local governments and communities to empower them to tackle these issues – building understanding of sustainability issues, providing practical training and demonstrating the direct benefits of a more sustainable approach through pilot projects. A great example is the Guangdong environmental partnership, an ISC initiative aiming to reduce greenhouse gas emissions, improve public health, and increase environmental accountability in the ‘world’s factory’ through a cross-silo approach – working with industry, government and communities simultaneously. It set up the Environmental Health and Safety Academy in Guangdong and Jiangsu provinces to prompt an industry shift towards higher

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standards. Backed by major brands like GE and Adidas, the academy builds the environmental health and safety capacity of mid- and seniorlevel managers in factories using a mix of technical training and leadership/ advocacy education to drive energy saving, reduce emissions and increase safety. In tandem, the ISC is helping local government environmental enforcement efforts by sharing international best practice, and working with communities and schools in Guangdong to implement energy-efficiency projects in factories, schools, hospitals and homes to generate public engagement on resource efficiency. The academy has already trained 8,000 practitioners, tapping best practice from leading multinational companies to create its curriculum.

And this local initiative is having a wider impact. The Guangdong bureau of human resources and social security has worked with Academy experts to develop a new protocol for the certification of qualified environmental health and safety managers, the first of its kind in China. The protocol, based on the Academy curriculum, is currently being piloted at provincial level in Guangdong, and Beijing has expressed an interest in adopting the protocol nationally once it is approved. The ISC has also set up a lowcarbon champions’ alliance to stretch across China, creating a forum for sharing lessons and successful models for action. It is hoping to sign up 1,000 members in the next five years, from government officials and practitioners to academic experts and business leaders.

K e y ta k e away s • Education and training can play a key role in driving change among all stakeholders – business and government, communities and individuals. • A lack of action on tackling resource efficiency can come from a capacity or knowledge deficit rather than any lack of motivation.

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C A S E S T U DY 3 0 G R E E n I n G R U R A L D E v E LO Pm E n T – EmPOwERInG wOmEn fA R m E R S I n I n D I A India remains a strongly agrarian society. Agriculture is the single largest economic sector in India, employing approximately 60 per cent of the workforce and contributing to about 16 per cent of GDP. he Ministry of Rural Development is, after the Defence Ministry, India’s largest; and is currently engaged in a series of projects to measure and scale the ‘green’ impact of its programmes. This includes looking at measures to strengthen the water cycle, improve water quality and enhance the capacity for carbon sequestration in soil through improved land use management. The ministry is also examining ways of increasing agricultural systems’ resilience to climate change adaptation. One particularly good example project is the Ministry’s Mahila Kisan Sashaktikaran Pariyojana (MKSP) programme, which aims to empower women through sustainable agriculture. Women comprise 33 per cent of the agricultural labour force and 48 per cent of self-employed farmers. However, female farmers are generally not able to access government support services and programmes (such as agricultural extension services) and production assets (such as seed, water, credit, and subsidies) because most of them are not recognised as farmers for want of ownership of land. MKSP provides women farmers with support to utilise lower cost, more sustainable agricultural

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practices. The key to this programme is knowledge dissemination – building the knowledge base of women farmers regarding, for example, poly cropping, pest and soil management, water conservation and recharging. Delivery is achieved by co-ordinating existing robust local community institutions such as women self-help groups, their federations, NGOs, farmer groups and farm schools. The self-help groups and their federations are the institutional anchor for the success of this initiative. By showing women farmers an approach based on using local resources and few external inputs (eg, high cost fertiliser, pesticides – and water), MKSP responds to nexus issues – improving livelihoods through higher productivity in a more sustainable manner with lower consumption of resources, especially water. An initial pilot was implemented covering 25 per cent of all cultivable areas – some two million hectares – in the state of Andhra Pradesh. To date approximately 2.5 million women farmers across nine states of India have benefitted from the programme. The ambition is to scale it up, over the next five years, to 20 million farmers across all of India.

K e y Ta K e away s • Bringing an environmental or sustainability lens to existi ng government programmes within the nexus can be a powerful lever for change. • Signifi cant impact on nexus issues can be delivered through the educati on of rural communiti es and intelligent use of existi ng local insti tuti ons.

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RESEARCH fInDInGS

RESE ARCH fInDInGS PRInCIPLE 8 EmBR ACE BUSInESS A S A C ATA LY S T O f C H A n G E Businesses can take a lead on tackling water-energy-food-climate nexusrelated issues, achieving outcomes that neither governments nor NGOs could achieve on their own. FACTORS ENCOURAGING BUSINESSES TO TAKE A LEAD

• • • • • • •

A lack of local or nati onal government capacity or inclinati on to act A passionate business champion The desire for certainty in longer-term economic and regulatory drivers Collaborati on across sectors Collaborati on across supply chains and delivery mechanisms The ability to act at speed and scale Detailed knowledge of the technical issues on the ground.

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“who you pick to lead your vanguard can be as important to the success of your initiative as the issues you choose.” Mark Brownstein, associate vice president and chief counsel of the US energy and climate programme, Environmental Defense Fund

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Mintails’ work on acid mine drainage shows that business can build solutions around even the most complex of environmental issues. (See case study 31, p 62). Chicago’s Climate Exchange was a voluntary exchange platform for greenhouse gas emission trading in

the US, developed in 2003 by business. Unfortunately, when a national climate bill was not forthcoming, allowance prices collapsed and the exchange was not renewed for a third period. However the exchange proved the concept and has inspired similar exchanges elsewhere in the world. (See case study 32, p 63). The World Business Council on Sustainable Development’s cement sustainability initiative brings together 24 cement producers accounting for 30 per cent of the world’s cement production. Together they have achieved a 14 per cent reduction in CO₂ emissions per tonne of cement produced since 1990. (See case study 33, p 64). The Tropical Forest Alliance, recently formed to reduce tropical deforestation, brings together both industry and governments. The organisation was born out of discussions between the US government and the Consumer Goods

Forum – involving a network of over 400 companies with sales topping USD 3 trillion. (See case study 34, p 66). As a consequence of consumer pressure on one of its major customers, McDonald’s, Cargill has worked with other international food producers to reduce the use of deforested tropical rainforest land for the growing of soya for animal feedstock. In the absence of local government capacity to deal with the issue in Brazil, Cargill has brought the farming industry together to agree an approach. (See case study 35, p 67).

The Tropical forest Alliance, recently formed to reduce tropical deforestation, brings together both industry and governments.

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C A S E S T U DY 31 m I n TA I L S ’ AC I D m I n E D R A I n AG E I n S O U T H A f R I C A South Africa’s rich natural resources made it the world’s largest gold producer for decades and a mining economy for over a century. But its mining success has left a toxic legacy. Thousands of mine tailings, dumps and ponds contaminated with hazardous metals like uranium were created by decades of mining; and acidic water from abandoned mines has begun decanting into local water systems. These contaminants are now threatening the health of local communities and local and regional water systems. hese mine tailings contain not just hazardous materials, but also gold, so Mintails has created an innovative way of processing acid mine water, to extract the gold for profit (the dumps typically contain around 0.3 g/ ton of leftover gold), make the water usable for other industrial uses, and reduce the water levels in mine voids so that they are not contaminating South Africa’s rivers and groundwater. To unlock the opportunity to do this, Mintails refocused itself on being an environmental solution provider, rejecting the idea that the problem of acid mine drainage is intractable. It recognises the need to create a social licence to operate and has embarked on a long-term process of engagement with local communities, government and NGOs through its Environment Management Forum. It has decided to embrace the concept of stewardship as the guiding

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framework for its water policy and stakeholder engagement, becoming the first mining company to formally adopt the Beta International Water Stewardship Standard (developed by the Alliance for Water Stewardship, an NGO). At the Randfontein Cluster near Johannesburg, Mintails’ technology will cut the ZAR 400 million cost of rehabilitating 100Mt of tailings to just ZAR 100 million. By extracting 15 million litres of toxic water from a contaminated aquifer just outside Johannesburg for re-use in its daily production processes, Mintails is tackling the source of much of the city’s water pollution. By doing this, Mintails has created a triple bottom line, creating a social benefit through employment at closed mine sites for local communities, protecting the environment and the water supplies that people depend on

by neutralising and re-using acid mine water, and finally drawing a profit from doing so by extracting gold from the water and accessing unexploited gold from the mines it drains. While considerable progress has been made at a local level, Mintails’ challenge is to persuade central government to create the regulatory framework to enable scaling of this solution, no small task given the current levels of mistrust between the mining sector and government. Water holds the key to South Africa’s future success. Climate change will make it scarcer, a growing population will need more of it to live, and its land and industries need it to be productive. Mintails’ partnership approach with government, society and NGOs could be replicated across the globe to solve mining’s legacy while protecting water supplies.

K e y Ta K e away s • Waste can be a resource. • Profi table businesses can be built around soluti ons to even the most seemingly intractable problems of the nexus with a litt le innovati on. • An alliance of government, business and NGOs is oft en needed to mobilise support for these soluti ons.

The Chicago Climate Exchange (CCX) was a voluntary exchange platform for greenhouse gas emission trading in the US. Richard Sandor, a former economics professor, adapted the idea for the exchange from the US Environmental Protection Agency’s successful sulphur dioxide emissions trading programme. t the launch of its first commitment period in 2003, CCX’s 13 charter members each paid an entry fee and received a yearly emissions allowance, which was calculated from their baseline emissions and CCX’s emissions reduction schedule. Participants, which included large and small corporations from almost every industry as well as utilities, universities, NGOs and municipal governments, joined the exchange because they were thought leaders who believed a national climate bill was coming. When it did, CCX would be positioned to become the US’s main platform for carbon trading. But a national climate bill never materialised and allowance prices collapsed in 2010. The exchange was not renewed for a third commitment period. The lessons of this experiment

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mInTAILS’ PARTnERSHIP APPROACH wITH GOvERnmEnT, SOCIETY AnD nGOS COULD BE REPLICATED ACROSS THE GLOBE.

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C A S E S T U DY 32 THE CHIC AGO C L I m AT E E X C H A n G E

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show that industry can get only so far ahead of policy and CCX could not survive indefinitely without US climate legislation. Nevertheless, many member companies and CCX itself still describe the seven-year experiment as a success – it helped members build experience in managing climate risks and its 450 members mitigated an estimated 400 million tonnes of greenhouse gas emissions, almost equivalent to the annual emissions of France. CCX, Sandor observes, got further than the US Congress was ever able to, ‘proving the concept without the policymakers’. CCX also inspired sister exchanges in Tianjin, Montreal and the European Union – the European Climate Exchange is the largest platform for the EU’s emissions trading scheme, in which 72 per cent of the world’s greenhouse gas trade takes place.

K e y Ta K e away s • Industry can take a proacti ve role in shaping policy and in doing so develops a capacity to respond to the policy when it is put in place. • Failure with nati onal frameworks can undermine specifi c localised developments, but these can sti ll push boundaries and provide valuable experience.

“market mechanisms can be of enormous value. There’s nothing wrong with doing good and doing well. If we’re incentivised to do something for the public good we’ll do it.” Dr Richard Sandor, chairman and CEO, Environmental Financial Products

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C A S E S T U DY 3 3 THE wBCSD’S CEmEnT S U S TA I n A B I L I T Y I n I T I AT I v E The global cement industry accounts for five per cent of the world’s carbon emissions. In 1999, under the guidance of the World Business Council for Sustainable Development (WBCSD), ten of the world’s leading cement producers came together to take action in the absence of a regulatory framework. he key aim was to increase the overall sustainability of the industry, reducing emissions, waste and environmental impacts while improving worker safety and community engagement. The effort has been a success, with the cement sustainability initiative’s (CSI) members achieving a reduction of 14 per cent in CO₂ emissions per tonne of cement produced since 1990. Demand for cement continues to rise, but the initiative has also been a catalyst for the beginning of a decoupling between production and emissions, so while production from its members grew by 61 per cent between 1990 and 2010, emissions grew by only 39 per cent. The initiative now has 24 members and collectively these companies account for around 30 per cent of the world’s cement production, ranging in size from very large multinationals to smaller local producers. The CSI

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is also active in driving a shift to sustainability in growing economies, developing a low-carbon technology roadmap for the cement industry in India that outlines a growth pathway for the Indian cement industry that could lead to carbon intensity reductions of 45 per cent by 2050. The CSI’s sustainability drive has also driven a raft of innovations in cement production processes, including replacing clinker with waste materials like fly ash, and using biomass and other alternatives instead of fossil fuels to heat kilns. Cement is the key ingredient in the second most consumed substance on earth after water – concrete – but its ubiquity also means its impact is global, requiring globally-coordinated action to drive change. The CSI shows that, even in the absence of global regulations, industry can take the lead.

K e y Ta K e away s • Businesses can come together and take the lead on tackling emissions and driving sustainability, even in the absence of a strong regulatory framework. • Leadership on sustainability from businesses can drive industry innovati on.

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THE CSI SHOwS THAT, EvEn In THE ABSEnCE Of GLOBAL REGULATIOnS, InDUSTRY CAn TAKE THE LEAD.

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CASE STUDIES

CASE STUDIES

C A S E S T U DY 3 4 TROPICAL fOREST ALLIAnCE

C A S E S T U DY 35 T H E S OY w O R K I n G G R O U P

Much of the demand for just five commodities (palm oil, soy, paper, beef and timber) drives more than 50 per cent of tropical deforestation, and this deforestation accounts for up to 17 per cent of global greenhouse gas emissions. These commodities are largely required by consumer goods companies. The Consumer Goods Forum (CGF) has now committed to eliminating deforestation from their members’ supply chains. ecognising the need for public sector involvement, Unilever initiated discussions with the US government on behalf of CGF, and as a result the Tropical Forest Alliance (TFA) was launched at the Rio Plus 20 conference in June 2012. Since then other governments have joined the alliance, including Norway, the Netherlands, the UK and Liberia. The intention of the TFA is to work at local, national and international levels to achieve its aim of reducing deforestation. The TFA is relatively newly formed but has made a good start. Its first meeting in Jakarta was opened by President Yudhoyono of Indonesia and it was specifically referenced by President Obama in a speech on climate change in June 2013. It has an agreed strategy and work plan and

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is now setting up a small secretariat. In its work it faces a number of challenges, which are common to this type of activity: continuity of key personnel, alignment between partners, governance, managing the workload, anti-trust legislation and finance.

K e y Ta K e away s • Business can come together and take a lead, encouraging internati onal acti vity on issues that governments themselves are unable or unwilling to pursue.

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Cargill is the largest privately owned company in the United States, reporting over £130 billion revenues in 2013, through a business network focused around agricultural commodities. In 2006, the environmental NGO Greenpeace released a report entitled ‘Eating up the Amazon’ claiming that McDonald’s was fuelling the destruction of the Amazon rainforest by using soybeans grown in the region as feed for chickens that end up being served up in the fast-food chain’s European restaurants. McDonalds then put pressure on its supply chain, including Cargill and other major food producers and marketers, who were buying soya beans from Brazilian farmers.

THE COnSUmER GOODS fORUm (CGf) HAS nOw COmmITTED TO ELImInATInG DEfORESTATIOn fROm THEIR mEmBERS’ SUPPLY CHAInS.

ocal issues in the Amazon, including land disputes and public land rights, as well as the vast scale of the 400 million hectare forests, meant that the local and national government were ineffective in combatting deforestation by these farmers. However, Cargill knew that immediately ceasing to buy soya from the Amazon area could have devastating economic and social consequences. Therefore, they worked with other major food companies to set up the soy working group, which brought together for the first time suppliers, retailers and environmental groups to end deforestation for soya production. Through effective geo-mapping of the area, and a soy moratorium

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between farmers and buyers, Cargill has helped reduce deforestation in the Amazon – with soy accounting for just 0.41 per cent of the Amazon Biome deforested land in 2011/12.

K e y Ta K e away s • Business can take a lead to bring industry together to achieve change and build local capacity. • Working with local parti es and aff ected stakeholders is key in bringing about longterm soluti ons.

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CONCLuSIONS

CONCLuSIONS

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the cases we have highlighted here demonstrate the beginnings of what can be achieved if we join our considerable forces for the sake of all our common goals.

CONCLuSION S The work highlighted in this report represents the beginnings of a larger-scale programme aimed at spreading information and inspiring effective action on policy across the water-energy-food-climate nexus and around the world. hese initial studies have brought us to eight key design principles for how to make policy truly fit for the 21st century:

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1. Develop policy laboratories and encourage experimentation 2. Create mechanisms to break down silos 3. Institutionalise a long-term view 4. Create and use reliable sources of information 5. Share knowledge to spread and scale policy innovations 6. Use smart campaigning. 7. Strengthen local capacity to deliver 8. Embrace business as a catalyst of change We began this project by seeking out individual pockets of good policy practice wherever we could find them. At first we thought these might come exclusively from governments, but it quickly became clear that there were three key sets of players when it came to making the most effective nexus policies. Of course, governments play the most central role in the policysetting arena, but businesses and representatives of civil society are also

POLICY SHAPERS

vital. Each player brings something important to the table. GOVERNMENTS CAN:

• speak for and act as referees on behalf of the people they serve • define the policy and regulatory landscape • play a leadership role in both responding to and helping shape popular opinion and behaviour • experiment and create the mechanisms to disseminate learnings • create frameworks and support mechanisms for business innovation • encourage data transparency in policymaking • create institutions that live outside the political cycle and take a longterm perspective. NGOS AND ACADEMICS/THINK TANKS CAN:

• act as facilitators or honest brokers, bringing people together • help bridge the trust deficit among the public, businesses and governments • act as sources of data and policy ideas and collators of ideas

• support capacity building in relation to policy implementation, especially in developing economies • initiate the development of global standards, eg, water management • take a longer view – beyond political and business cycles • transmit policy ideas between different geographies • lobby governments and businesses to challenge their impacts and help them achieve change • campaign and mobilise civil society aligning with individuals’ concerns.

• assist policymakers in moving from demonstration to scale • act at speed • build local delivery capacity • bring a can-do attitude to break through bureaucratic inertia • reach very large numbers of individuals and influence their behaviour • fill the leadership vacuum sometimes left by government, specifically through the creation of cross-sectoral collaborations. But of course, as this report and the cases it describes vividly demonstrate, the real power comes when these three sectors work most effectively together. Just as the issues in the food-waterenergy-climate nexus are cross-cutting and interdependent, so the developing solutions to those issues demonstrate the need for collaborations and connections across traditional silos. Although there are many factors that hinder such collaborations, we are currently identifying powerful factors that can support them in a separate but linked piece of work reviewing the experiences of leaders

BUSINESSES CAN:

• transcend national boundaries, transmitting best practice and innovative ideas between geographies • bring urgency to the issue through their need for certainty in longerterm regulatory drivers • innovate in the policy, technology and commercial space • bring deep practical, commercial and technical knowledge to bear on policy issues that isn’t generally available in the public sector

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who have taken part in transformative collaborations. We are finding that often it is crucial to have individual champions who stand out in the different sectors by their persistence, passion, collaboration, humility and vision, and can forge the bonds of trust that these collaborations need. Neutral ground can also be vital, as well as shared accountability and ownership of the outcomes. This work is in its early stages but it will continue in parallel with the policy work as we seek to develop an effective toolkit for collaborative 21st century leaders. Meanwhile, we will continue to focus our efforts on better ways to connect innovative policymakers, representatives of civil society and business leaders, and how to spread and scale their most effective collective actions. And although it will take time to build the trust, relationships and connections that all of this implies, the cases we have highlighted here demonstrate the beginnings of what can be achieved if we join our considerable forces for the sake of all our common goals.

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04

NEXt StEPS

NEXt StEPS

We welcome all players who are truly ready to forge a community that is committed to developing transformative policy solutions and creating an investment landscape fit for the 21st century.

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NEX t StEPS This report contains only a selection of the many insights and examples that we have gathered so far in the policy shapers work. There is much more to come. owever, the goal of the programme is not only to develop and spread these innovative approaches, but also to help revitalise the relationship between business, government and civil society by creating a community that is committed to developing, piloting and scaling transformative policy ideas that will foster resource-efficient lowercarbon investment opportunities. We took the first steps towards building that community at the global policy shapers roundtable, held on 25–26 September 2013 in London, which brought together senior business leaders, policymakers and NGO representatives from Australia, China, France, the Netherlands, Norway, Singapore, South Africa, Taiwan, the UK and the USA (see Annex 1, overleaf). Over the next few years we will set the pulse of the policy shapers community via an annual global roundtable, which will focus on developing our collective understanding of the large crosscutting issues across regions, sectors and time. We intend to complement these with a larger number of regional roundtables, involving deep dives on specific geographies and/or policy themes.

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In addition, we will: • Employ targeted two-way communications to deepen the

engagement with and among the policy shaper community. • Develop and implement a digital platform that will serve two purposes: (a) act as an ideas hub and policy forum where business leaders, policymakers, academics and NGOs can exchange and discuss policy ideas relating to practical policy challenges; and (b) communicate key learinings and case studies to a broader community. • Invite members of the GLTE partnership, policymakers and NGO community to identify specific, practical policy challenges in particular geographies or sectors as a test bed for the global policy community to collaborate on. Ultimately, of course, we would like to focus all our efforts on developing new practical solutions to policy challenges, and helping to spread and scale those solutions. If you have any ideas for specific policy challenges or case studies that you wish to share, if you would like to become a partner in the project or simply become part of the community, please let us know (email glte@xynteo.com). We welcome all players who are truly ready to forge a community that is committed to developing transformative policy solutions and creating an investment landscape fit for the 21st century.

‘Leaders need to imagine what the future could look like.’ Vernon Collis, Engineer-architect and partner, Collis and Associates

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EXECutIVE SuMMARY

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ANNEX 1 ABOut tHE INAuGuRAL P O L I C Y S H A P E R S R O u N D tA B L E At our inaugural global policy shapers roundtable on 25–26 September 2013 in London we explored how businesses, policymakers and civil society can work together in new ways to develop and implement policy frameworks and processes that enable resource-efficient growth. he purpose of the roundtable was to create a neutral platform that brings together senior business leaders and pioneering policymakers to share examples of innovative policies and policymaking processes. It was the first step in developing a community committed to developing, piloting and scaling transformative policy ideas and helping to evolve policy frameworks that foster low-carbon, resource-efficient business opportunities. The programme began with a context-setting panel of senior policymakers, business leaders and NGO representatives who offered different perspectives on the challenges they face in the policy arena, the barriers to dialogue and the obstacles to long-term thinking. We heard from policy experts, NGOs and business leaders who have the ability to help shape policy all over the world, including Sir David King, special representative for climate change to the UK foreign secretary; John Thwaites, chair of the Australia National Sustainability Council; Sonia Yeh, a UC Davis research scientist and advisor to the California Air Resources Board; Michael Anti, a key figure in China’s new journalism; Li Junfeng, drector general, China’s National Centre for Climate Change Strategy and International Cooperation; and Richard Sandor, chairman and CEO of Environmental Financial Products.

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The majority of the roundtable was taken up with working sessions based on many of the case studies in this report. Questions addressed included what are the key lessons to be learned; what could be scalable in other geographies; what could be replicable in other political systems? Case studies came from policymakers, businesses and NGOs based in geographies such as Australasia, China, Europe, India and North America. The working sessions were centred on real examples of policymaking around the world. In some sessions, the participants reflected on lessons learnt from examples of recent or current policies such as Victoria’s ‘Target 155’ behaviour change initiative (p 47) and California’s low-carbon fuel standard (p 10). As well as policy initiatives already under way, the group discussed some live challenges in the nexus areas – hot topics that business, governments and society are only starting to address today. These problems are complex, multidimensional and new. One example was the Tropical Forest Alliance (see p 66) in which we discussed the many challenges of bringing a diverse group of stakeholders together to create effective change. These live challenges require creative, collaborative and effective policymaking. Some of the themes that emerged took us by surprise. Young people,

this was the first step in developing a community committed to developing, piloting and scaling transformative policy ideas.

for example, had not been a specific theme of the policy shapers project and had not previously featured significantly in Xyntéo’s conversations with nexus policymakers. And yet over the course of the roundtable, they were a recurring topic – their prospects, youth unemployment, their attitudes towards the world around them, and their enormous potential to think differently and innovate. One participant pointed out that most significant change takes around 20 years to achieve and therefore this makes 21-year-olds a target audience for any message of change. During the final session of the roundtable, we discussed the future for the policy shapers project – how to deepen the dialogue that is emerging between business, policymakers and other participants, and how to channel the energy of the roundtable participants towards action. Some of the initial ideas are captured on the next page. Overall, our discussions revealed a significant appetite among participants to act together on these problems as well as some practical outlooks on the specific scale and nature of the solutions needed. The next steps section (p 71) describes some of the ways we intend to take these ideas and practical suggestions forwards to create a forum for real and scalable change.

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“What’s different about this conference is that we really focused on case studies and strategies that have been successful. I think there’s a beginning of a dialogue here and relationships among these parties that it’s very important to continue to build.” Betsy Otto, director, Aqueduct project, World Resources Institute

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BIG IDEAS

BIG IDEAS

ANNEX 1 ( con t in u ed ) big ide A S These are all ideas put forward at the inaugural global policy shapers roundtable.

Don’t treat people in power as if they are stupid – they act because of the power structures and incentives they face.

We need to develop a long term view, a multi-region view and a multi-issue view.

It’s important

h o w b e s t C A N WE w o r k t o g t h e r ?

that we can see the bigger picture; this is about getting rid of

pollution not punishing the polluter.

Detractors tend to be more passionate than advocates; enlightened business leaders need to be passionate advocates.

POLICY SHAPERS

We need special tools for people to understand the big picture.

Change takes longer than we think so we need to start engaging today’s 21-year-olds.

It is important to give consideration to the emotional triggers, understanding what it is that makes people behave differently.

Celebrities and YouTube videos have an enormous ability to connect with people emotionally.

Give relationships across groups time to build.

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Create the platform to share positive ideas – the more transmission mechanisms we have, the better. Go to the kids – build links with universities. Co-create activities with young people.

Analyse results to understand common elements of success from different case studies.

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Create shared ownership of problems.

w h a t s h o u l d w e d o n e x t ?

Avoid stereotyping each other. We let ourselves down with characterisations but the reality is that we are all connected.

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Look for practical ways not only to share ideas but also to transfer and scale them.

Continue to build a network and relationships between businesses, NGOs and governments.

Seek live policy challenges and co-create solutions with all stakeholders.

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COUNTRY CONTEX TS

COUNTRY CONTEX TS

RUSSIA

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P88

OIL AND GAS REVENUES ACCOUNT FOR 11 PER CENT OF THE COUNTRY’S GDP FOSSIL FUELS AS A PERCENTAGE OF TOTAL ENERGY USE: 91 PER CENT

UK

P94

KEY CHALLENGE IS TO RE ALISE THE AMBITIOUS EMISSIONS REDUCTION TARGETS SET FOR 2050 CO2 EMISSIONS: 7.93 T PER C APITA (47TH HIGHEST IN THE WORLD)

P80

CALIFORNIA C ALIFORNIA HAS AMBITIOUS GREENHOUSE GAS REDUCTION TARGETS TO CUT STATE WIDE EMISSIONS TO 1990 LEVELS BY 2020

EUROPEAN UNION

P84

CHINA

P82

GOVERNMENT INTENDS TO SPEND USD 275 BILLION OVER THE NEX T 5 YE ARS ON IMPROVING AIR QUALIT Y

KEY CHALLENGES ARE TO REDUCE THE DEPENDENCY ON FOSSIL FUELS AND IMPORTED ENERGY

CO2 EMISSIONS: 6.17 T PER C APITA (63RD HIGHEST IN THE WORLD)

INDIA

P86

MAIN FOCUS IS ON MAKING SURE IT IS ABLE TO FEED 1 .2 BILLION PEOPLE, POPUL ATION: 1 .2 BILLION (2ND L ARGEST IN THE WORLD)

ANNEX 2 COUNTRY CONTE X T S In this section you will find information about each of the territories we have analysed during our research. This includes each country’s ‘vital statistics’, plus information about governance, areas of policy focus, key insights and identified opportunities.

SINGAPORE

P90

OFFERS AN EXCELLENT TEST BED FOR NE W NEXUS POLICIES, TECHNOLOGIES AND APPROACHES

SOUTH AFRICA

P92

AUSTRALIA

THE GOVERNMENT’S NUMBER ONE FOCUS IS ON JOB CRE ATION

P78

THE BIGGEST CHALLENGE IS MANAGING SC ARCE WATER RESOURCES THAT WILL BE INCRE ASINGLY UNPREDICTABLE IN THE FUTURE

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POLICY SHAPERS


78

COUNTRY CONTEX TS

COUNTRY CONTEX TS

79

The biggest challenge is managing scarce water resources that will be increasingly unpredictable in the future.

POPULATION

22.68 million (51st largest in the world) GDP PER CAPITA

USD 67,036 (5th in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 94 per cent

KEY CHALLENGES

E N E R GY U S E P E R C A P I TA

POLITICS: The new government leader Tony Abbott has promised to make the removal of the carbon tax a priority, increasing uncertainty about climate policy and possibly the projected ETS-scheme.

5,366 kg oil equivalent WATER RESOURCES

Annual freshwater withdrawals as a percentage of total resources: 5 per cent CO2 EMISSIONS

18.3 t per capita (11th in the world)

ENERGY: Most of Australia’s power comes from inefficient coal plants, giving it (according to some data sources) the highest emissions per capita of any developed country in the world. Exploitation of huge shale, coal seam gas and oil resources face challenges of water access because of scarcity and competing uses such as agriculture; and public opposition which is also affecting a burgeoning LNG industry.

AUSTRALIA

WATER: Climate change is set to make Australia even more arid with a projected 20–30 per cent cut in rainfall in the east and southwest, bringing prolonged droughts. Higher temperatures will also mean higher levels of evaporation where rain falls, further drying up rivers, reducing water seeping into water tables and reaching cities. Australia’s agricultural industry consumes over half of the water available. With less rain, and less reliable rainfall, competition between uses (people, energy, industry, agriculture) will rise. The mismatch between increasing water demand and decline in water availability is the major resource issue in Australia.

GOVERNANCE Stable parliamentary democracy (with recent minority governments and coalitions). Free market economy. Powerful federal state governments.

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AREAS OF POLICY FOCUS

Using market mechanisms and water pricing is a key focus for Australia, but effective implementation of these policies has proven a real challenge because of vested interests. Australia is striving to balance the strongly competing needs of industry, energy, agriculture and households for limited water resources in the context of an expanding economy based mainly on resource extraction. Bringing together corporate, government, academic and community interests to develop novel solutions is a key part of Australia’s attempts to deal with a future with longer periods of drought and more pronounced climate change effects than other countries. Driving local solutions and behaviour change is a key plank of tackling nexus issues – finding effective ways of involving local communities in decision-making without allowing local interests to overcome broader public good goals. KEY INSIGHTS

1. Australia has been very good at developing high level policies and market-based mechanisms, including developing a world leading water trading market, but these efforts have often been undermined because the instruments have been adjusted to cater to regional, political or industry (mining, agriculture) interests, thus reducing overall effectiveness.

2. Australia has been successful in getting business, government and academia together to tackle problems relating to the nexus. Its Cooperative Research Centres offer a world-leading example of industry, government and academia coming together to tackle whole-ofsociety challenges in a collaborative way. Their research is driven from the bottom up, so communities have a key role to play, while governments gain by being directly involved in applied research and learn from it for policy formulation – companies get a competitive advantage by accessing innovative research and insights into key future challenges that will present a commercial opportunity. 3. The Australian experience shows business can play a leadership role by working in collaboration with academia and government but local, distributed solutions often prove most effective with regard to implementation. THE OPPORTUNITY

Within an environment that encourages government-corporatecommunity collaborations there is a real opportunity for business leadership on implementation of nexus policies, with approaches that can secure high level societal goals while engaging all stakeholders effectively.

POLICY SHAPERS


80

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COUNTRY CONTEX TS

81

California has ambitious greenhouse gas reduction targets to cut statewide emissions to 1990 levels by 2020

POPULATION:

38 million

GDP PER CAPITA

USD 51,914 (10th in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 81 per cent E N E R GY U S E P E R C A P I TA

KEY CHALLENGES

5,225 kg oil equivalent

ENERGY: Historically, a secure energy supply has been a major issue for California, with blackouts a relatively recent memory. California still imports a large proportion of its electricity, at around 25 per cent, and these imports generate about 50 per cent of the state’s power sector emissions, mainly because they are sourced from coal-fired plants.

CO2 EMISSIONS

9.55 t per capita

WATER: Climate change will not alter the overall north-south divide on water. 75 per cent of California’s water supply comes from north of Sacramento, while 80 per cent of the water demand occurs in the southern two-thirds of the state. Increasing demand from a growing population and a drier climate will increase competition between urban, agricultural and environmental water use. Reform of water rights and allocations is a major issue in this context.

CALIFORNIA

AREAS OF POLICY FOCUS

California has ambitious GHG reduction targets to cut emissions to 1990 levels by 2020. It has also introduced a cap and trade system for major sources of GHG emissions, a renewable energy portfolio standard for utilities (33 per cent by 2020) and has adopted a range of ‘discrete early actions’, including its world-renowned low-carbon fuel standard. California sees sustainability, clean technology and renewable energy as things that can provide it with

GOVERNANCE High regulation environment. Very progressive, liberal political outlook. Global leader on sustainability, clean technology development.

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a competitive edge in the future, believing them to be the next stage of global industrial development and a logical next step to follow Silicon Valley’s success. By aiming for a global leadership position in these areas, and attempting to transition its industrial base to a new level of sustainability, it believes it is building a cutting edge industry that can be a major global exporter and a driver of future growth for California’s economy.

respective positions, these institutes also have a validation role in screening relevant data and information. 4. Long-term policy signals do work. From the California Renewables Portfolio Standard and the Low Carbon Fuel (LCF) Standard to the Light Bulb Standard, the key common reason why they have been successful is that they set clear, long-term trajectories to which business can respond.

KEY INSIGHTS

1. California has demonstrated that policies developed with wide stakeholder input and collaboration can be successful. 2. Companies hold the key to addressing the stress nexus challenge. Corporations can provide the muscle and technical expertise to drive real change, but politicians and policymakers need to make sure they support positive movement by industry, by making their innovations the next standard and letting them know policy will back them if they innovate to solve climate change challenges. 3. Independent science and scientific research institutes can play a key role in providing a bridge between policymakers and businesses, providing independent analysis of policy options and industry proposals. While finding solutions that can achieve the objectives of both sides without compromising

5. California’s CARB worked with EU agencies and the Federal government to develop its most effective policies including the LCF, but it also worked closely with industry, bringing in corporations to get their input and using their company data to directly shape and amend policies as they are developed. It demonstrates international collaborations can be really effective. THE OPPORTUNITY

California has shown that pioneering policies on climate change do not have to be a loss leader. With its collaborative and ‘listening’ approach, industries that want to develop technologies and approaches that tackle the nexus have both a ‘laboratory’ in California, and willing collaborative partners that are open to regulating to reward innovation that drives solutions to the nexus.

POLICY SHAPERS


82

COUNTRY CONTEX TS

COUNTRY CONTEX TS

83

The government intends to spend USD 275 billion over the next five years on improving air quality

POPULATION

1.4 billion (1st in the world) GDP PER CAPITA

USD 6,188 (84th in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 88 per cent KEY CHALLENGES

E N E R GY U S E P E R C A P I TA

1,807 kg oil equivalent

By 2011 more Chinese citizens were living in cities than in rural areas. This extremely rapid urbanisation process has had major implications for all nexus areas.

WATER RESOURCES

Annual freshwater withdrawals as a percentage of total resources: 20 per cent' CO2 EMISSIONS

6.17 t per capita (63rd highest in the world) ENERGY: China’s energy challenge is how to meet its ongoing and growing demand for energy at the same time as cutting emissions. Large efforts are being made to increase the share of renewables and test out various schemes for emissions trading. At the same time, coal remains a cornerstone of the Chinese energy portfolio. WATER: China’s water resource challenge consists of both water quantity and quality issues. The Chinese government’s water strategy, like other environmental strategies risks being undermined by intergovernmental rivalries, corruption and incentives that favor economic development over sustainable resource use. Ultimately, water has the potential to become a significant constraint to economic development eg, holding back coal production unless water use becomes more efficient.

CHINA

AREAS OF POLICY FOCUS

China’s core goal is one of economic development for its vast population. The new leadership in China is more aware of the negative impact of economic development on the environment and public health. Central policies have a larger focus than previously on environmental

GOVERNANCE Single party socialist republic. Strong centralising control with local regions implementing centrally-driven policy. Regular overhauling of ministries and responsibilities.

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issues and sustainable development – there are low carbon city demonstration projects, energy efficiency activities, renewable energy development goals, etc. Air quality is a focus – the Chinese government recently announced its intention to spend USD 275 billion over the next five years on improving air quality. That is the same as the GDP of Hong Kong, and twice the size of their annual defence budget. KEY INSIGHTS

1. China demonstrates a surprisingly creative policymaking process. Our research suggests that government officials take the time to join up responsibility for complex issues (through the National Development and Reform Commission), learn from other countries and have developed a culture of experimentation with a mantra of learning-by-doing. 2. Whilst the communist government is controlling and centralising, there is a relatively dynamic relationship between central and regional governments, with central government setting a framework in which regional experimentation can take place. All regions have their own personalities and leaders and some are by nature more innovative and pioneering than others. 3. Despite efforts by the government to tackle environmental issues the scale of the task is immense (see Key Challenges) and in many cases there is a lack of knowledge

about environmental issues at local government level and lack of capacity to deal with them. Monitoring data is lacking, for example in relation to levels of pollution, however when data is available and when it is shared with the Chinese people, significant change can be achieved. 4. Government monitoring of the media remains intense and there is little transparency in the government system. However, social media, in the form of Sina Weibo (a combination of Facebook and Twitter), although still controlled by government officials, provides a vehicle that can give voice to concerns around environmental issues. 5. NGOs are a relatively new phenomenon to China, and the country lacks the numbers, diversity and influence of these organisations that can be observed in other countries. THE OPPORTUNITY

China’s political context remains a constraint to outsiders operating in China. Resource constraints may yet start to hamper economic development. Some regions, like Shenzhen, appear to offer more promise than others with the ambition to unite behind new ideas and to clean up the environment. Government is the dominant player, but there are opportunities for Chinese businesses that can harness local support and international backing to look for opportunities.

POLICY SHAPERS


84

COUNTRY CONTEX TS

COUNTRY CONTEX TS

Key challenges are to reduce the dependency on fossil fuels and imported energy

POPULATION

506 million (3rd largest in the world) from 28 countries GDP PER CAPITA

USD 32,672 (26th in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 72 per cent E N E R GY U S E

2,929 million tonnes oil equivalent

KEY CHALLENGES

WATER RESOURCES

ENERGY: Key challenges are to reduce the dependency on fossil fuels and on imported energy. Targets for emission reduction and renewables’ share are decided at the EU level, yet states decide support schemes for renewables. Member states remain largely in control over the national energy mix. In 2009, an integrated energy and climate package that mandates considerable change in the national energy mix was adopted.

Annual freshwater withdrawals as a percentage of total resources: 13 per cent CO2 EMISSIONS

8.6t per capita (3rd in the world)

WATER: There are increasing concerns for water supply, in particular in the southern states. Water scarcity affects 11 per cent of the EU’s population (17 per cent of its territory), while consumption is growing and severity of droughts has increased. At the same time ineffective systems mean that 20–40 per cent of available water is wasted. Policies have been adopted at the EU level (Water Framework Directive from 2000, a blueprint for a water management strategy from 2012) and at the national level (market-based instruments like tariffs based on consumption and funding targeting water saving) to address this.

EUROPEAN UNION

AREAS OF POLICY

GOVERNANCE Supranational governance where member states have transferred part of their sovereignty to the EU institutions. Decision-making distributed between the national and the European levels of government. Over time, more power has been delegated to the EU, and, within the EU, the use of majority voting has increased.

POLICY SHAPERS

85

FOCUS

Having adopted an integrated energy and climate package for EU policy towards 2020, the EU has now started work on policies towards 2030. The 2030 discussions are taking place to a backdrop of energy prices, which are much higher than in the US. Europe is seeking to improve its economic growth, with several

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countries struggling with large budget deficits. At the same time, the EU seeks to reduce its emissions and stimulate the development of lowcarbon technology. Currently, existing measures for low-carbon growth are struggling – the price on credits under the EU’s emission trading system (ETS) is too low to incentivise low-carbon innovation, while consumption of cheap coal has increased in some member states. Moreover, the expansion of electricity production based on renewable energy sources has been accompanied by concerns over security of supply eg, during windless periods. KEY INSIGHTS

1. The EU has been successful in making an integrated climate and energy package for 2020, which reconciled the different objectives concerning competitiveness, climate change and security of supply. The package was made possible through compromise, where different member states as well as industries were compensated for concessions. However, some issues included in the package had not been resolved by the time of adoption (sustainability criteria of biofuels, default values for calculating lifecycle emissions of different fuels, and car emission standards are still under discussion). 2. There are different time horizons for different actors, in particular between policymakers, industry and academics. With long-term plans of major impact under discussion, there is an uncertain

investment climate for business. Today, there is a low willingness to invest in second generation biofuels because of a risky landscape for prospective biofuels policy, thus making it difficult to overcome the sustainability issues of first generation biofuels. 3. Policymakers are generally interested in making concrete policies upfront, rather than awaiting the results of research and development. Ideally, sustainability impacts of technologies should be assessed in depth before policies are made. 4. Water policy is increasingly on the agenda and issues vary considerably across the EU member states, from too little (scarcity issues), too much (flooding), to water quality and pollution. Prospects for shale gas extraction in EU member states have drawn further attention to water policy. As demonstration projects are underway in some member states, concerns for groundwater pollution have been raised. THE OPPORTUNITY

Policymaking on nexus issues in Europe has the potential to open up new opportunities by changing the policy dynamics that are central to stakeholders operating in the different nexus areas. Areas such as biofuels can in this way represent opportunities for finding comprehensive solutions that address a challenge that must be tackled by several sectors.

POLICY SHAPERS


86

COUNTRY CONTEX TS

COUNTRY CONTEX TS

87

India's main focus is on making sure it is able to feed its 1.2 billion people

POPULATION

1.2 billion (2nd largest in the world) GDP PER CAPITA

USD 1,489 (137th in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 73 per cent

KEY CHALLENGES

ENERGY: India’s key challenge is a large energy deficit. This has ramifications for energy access, for reliability, and for distribution aspects within population groups. The government is seeking to address the deficit by importing fuels (and planned electricity transmission connections from Nepal in particular) as well as developing alternative sources of energy such as PV, wind and nuclear. Energy access is often used as a political tool at local and state level, leading to mismanagement of resources and inefficient use. Wider energy infrastructure is often unreliable and pricing does not reflect cost recovery.

E N E R GY U S E P E R C A P I TA

575 kg oil equivalent

WATER RESOURCES

Annual freshwater withdrawals as a percentage of total resources: 53 per cent CO2 EMISSIONS

1.65 t per capita (136th in the world)

WATER: India has serious issues around water rights, in terms of who has access and to how much, with competing demands from energy companies, industry and farmers. Watershed management in terms of sustainable levels of extraction from aquifers is a serious issue, with vested interests often winning out to the detriment of the wider society and economy. Pollution of drinking water is also a significant problem caused mainly by untreated sewage.

INDIA

AREAS OF POLICY FOCUS

India’s main focus is on making sure it is able to feed 1.2 billion people, and consequently raising agricultural productivity and food security are key policy goals. India’s demographics bring this into sharp focus with more than 50 per cent of

GOVERNANCE Weak regulatory environment – not much regulation and weak enforcement of what exists. Serious governance issues (eg, lack of capacity, corruption, silos) at national, state and local level. Political landscape often split along regional, ethnic and religious lines.

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its population under the age of 25. Establishing reliable water and energy supplies across the whole country are considered to be the levers for moving people into more productive activities. De-centralised solutions and development are the key to creating a sustainable economy and society facing resource constraints, where large infrastructure systems either do not exist or are in poor condition. KEY INSIGHTS

1. There is a big gap between national government and states, especially on national policies that are not being implemented as envisioned at the state level because they are not grounded in local realities. States often operate autonomously which leads investors and corporations to go directly to 'business-friendly' states but leaves India without a coordinated approach to dealing with the stresses of the nexus. Reforms are being led at state level especially on water and energy. 2. Short term political concerns and election cycles are still shaping India’s state policies on energy, water and food, despite the fact that India is already feeling the negative effects of resource constraints acutely. Although there are signs of a new generation of politicians with a longer term perspective, and of a new raft of entrepreneurs who are not willing to engage in the crony capitalism

of the past, most key decisions still appear based on vote counting rather than sustainability goals. 3. Silos are a major barrier to progress on any kind of unified policy to address nexus issues. There is an absence of fora for a range of stakeholders, from domestic to international companies, to come together to develop common good policies, and India’s political system appears to encourage a disproportionate influence for vested interests often creating stalemate and political blockages. 4. Innovation and invention is alive and well among India’s entrepreneurs, but scale is lacking. THE OPPORTUNITY

Given India’s fragmented political and policymaking landscape, there is a real opening for an effort to bring together key actors and stakeholders from across the country and unite them behind a national initiative on the nexus. Corporations may be alone in having the reach and ability to implement country-wide policies that can have an impact, to convince state governments that it is in their interests to act together. Some of the Indian states (such as Gujarat) have the potential to become real drivers of change, and herein perhaps lie opportunities for influence through the by-passing of the federal level.

POLICY SHAPERS


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COUNTRY CONTEX TS

COUNTRY CONTEX TS

89

Oil and gas revenues account for 11 per cent of the country’s GDP KEY CHALLENGES

ENERGY: Russian hydrocarbon reserves are ample but new fields of oil and gas are found in more remote areas than before, and are generally more geologically complicated and smaller on average. This means that the unit cost of production is soaring. Due to insufficient exploration there is a significant risk that new fields, especially of oil, will not be brought on stream soon enough to avert a fall in production. However, the biggest challenge relates to the state’s income from the sector since the resource rent is getting smaller. In the case of gas, conditions of international oversupply are hitting Russia’s export earnings hard. Energy efficiency is also a major issue in Russia. The country uses more than seven times as much energy per unit of GDP than the average for Western European economies. Energy wastage in public sector buildings and housing is significant.

POPULATION

143 million (9th largest in the world) GDP PER CAPITA

USD 14,037 (45th largest in the world) E N E R GY R E S O U R C E S

Fossil fuels as a percentage of total energy use: 91 per cent

RUSSIA

E N E R GY U S E P E R C A P I TA

4,927 kg oil equivalent

KEY INSIGHTS

WATER RESOURCES

WATER: Due to poor water management and pollution, there is a scarcity of clean water in many of Russia’s more densely populated areas, as well as in its most important agricultural regions. Water treatment facilities are largely obsolete and inefficient, and poor quality of drinking water is a serious health concern. Another issue is community attitudes, for example towards water conservation.

Annual freshwater withdrawals as a percentage of total resources: 2 per cent CO2 EMISSIONS

12.18 t per capita (22nd in the world)

GOVERNANCE Strong centralising tendencies – regions have their own governments, but major decisions and competencies rest with Moscow. Elections are characterised by high barriers to entry and manipulation. Heavy regulatory environment, preference for statedominated companies. Judicial system heavily influenced by political and administrative bodies.

POLICY SHAPERS

are a key focus of interest for Russian policymakers. Efficiency of economic activity was a rhetorical policy goal in Russia in Soviet times. President Medvedev’s modernisation initiative was the most recent campaign launched around this issue, however, with little practical outcome. Government favours control over efficiency, and it is also complicated to break with traditions from the Soviet period with its wasteful technologies and infrastructure. Synergies with environmental goals have been identified (for example, energy efficiency legislation and climate change mitigation) and demonstrated (for example, the contribution of the Kyoto Protocol’s joint implementation mechanism to cutting down associated petroleum gas flaring as legislated domestically).

AREAS OF POLICY

V I T A L S T A T I S T I C S

FOCUS

Oil and gas revenues account for 11 per cent of the country’s GDP, and constitute approximately half of the federal budget’s revenues, and thus

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1. Given its vast resources, Russia is less conscious of needing to engage in a discussion that focuses around sustainability and scarce natural resources. However, orientating discussions around ‘energy efficiency’ is much more likely to gain traction.

shoots of a regional awakening, hoping that the government’s intention to grant more regional autonomy will see power begin to shift, to some extent, away from the centre. 3. Culturally the Russian world view is a challenge with a strong us and them mentality – an outlook that can hamper the efforts of foreign companies to enter the Russian market, and that can also prevent Russians from looking for and learning from innovations outside their own back yard. The general view is that, to be successful it is important to adapt and align your organisation. The ‘holy grail’ is to be regarded as ‘one of us’ or at least to maintain a presence below the radar. 4. The gap between legislation on paper and its practical implementation is vast due to the informal practices and traditions, as well as the lack of neutrality by the public administration. This often leads to corrupt personal or organisational interests driving policy initiatives and choices with regard to their implementation. THE OPPORTUNITY

2. Politics, rather than policy, remains the dominant driver of change, with political changes sweeping away hard work around policy activity, a case in point being the ‘Russia Energy Roadmap to 2050', which was shelved with the 2012 change in government. However, those who know Russia well suggest that they see the green

There is a need to diversify the Russian economy through technological development and innovation, but current policies in this area seem to exist only as declarations – the main focus remains on energy exports and political control over the population. Little innovation is likely to occur under the current circumstances.

POLICY SHAPERS


90

COUNTRY CONTEX TS

COUNTRY CONTEX TS

91

Offers an excellent test bed for new nexus policies, technologies and approaches

POPULATION

5.4 million (115th in the world) GDP PER CAPITA

USD 51,709 (9th in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 99 per cent KEY CHALLENGES

E N E R GY U S E P E R C A P I TA

Singapore is the second most densely populated country in the world (behind Monaco) – this presents significant challenges in every element of the nexus.

6,458 kg oil equivalent WATER RESOURCES

Annual freshwater withdrawals as a percentage of total resources: 32 per cent CO2 EMISSIONS

WATER: Water security is a major issue, resources are extremely limited in Singapore so it has pioneered recycling water in innovative ways (including from sewage) and focused on improving efficiency. Increased climate change will make rainfall patterns less predictable, with more flooding and longer drought periods.

2.64 t per capita (113th in the world)

ENERGY: Singapore is dependent on oil and gas imports and has no fossil fuel resources of its own. Reducing demand (smart grids), efficiency of use (public transport), and distributed energy through using buildings as power plants (solar panels – selfsufficient buildings) are all deployed as strategies. Singapore’s first LNG import terminal began operating in May 2013.

SINGAPORE

AREAS OF POLICY FOCUS

Singapore is targeting self-sufficiency in relation to water. Engaging industry and ensuring that they continue to come up with innovative solutions is a key area of focus. In tandem, Singapore also wants to continue to build on its reputation as a hub for knowledge and expertise in water solutions to drive expansion of its water industry and exports. Job creation and attracting

GOVERNANCE Parliamentary representative democratic republic. Command economy and political system, dominated by the People’s Action Party, which has been in government and won every General Election since 1959. Highly regulated but innovative environment. Long-term outlook and sustainability focus – responsive policy system open to cutting edge new ideas.

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investment to steadily increase living standards and provide an improved living environment are extremely important in this ethnically diverse immigrant society. The overarching aim is to maintain societal harmony. KEY INSIGHTS

1. Singapore’s response to scarcity has been a combination of sustainability and innovation. It has little water so it has transformed itself into a global centre of excellence for innovation in water supply and sourcing, becoming a leading centre for water research and development and commercialisation. Driven by necessity, it is not afraid to pioneer solutions with long paybacks while investing in research and development and drawing in knowledge from the outside, learning from the experience of other countries and cities to produce effective solutions. 2. Collaboration has been the key to Singapore’s success, not just abroad but also at home. The Singaporean government has worked closely with the private sector to deliver integrated solutions on water issues that can produce real public benefit while also developing new technologies and cuttingedge companies. It is committed to a public-private approach to solutions that could hold the key to tackling the nexus effectively elsewhere, especially in an era of global cities.

3. Integrated and long-term planning, and cross-silo thinking are central to the Singapore story. Space and scarcity are the drivers of all its policies. Understanding that policies in one area can spark a chain reaction across other nexus points, led Singapore to pioneer highly integrated land-use planning that created policies that could touch all critical resources and drive efficiencies. And because the problems are so complex and cross so many disciplines, Singapore has looked to bring together diverse groups from different backgrounds to try to find solutions in energy, water, transport, and housing. 4. Singapore’s rule-bound culture perhaps makes it unique in successfully implementing policies that might have less chance of achieving traction in more liberal cultures. THE OPPORTUNITY

With its government’s partnership approach to industry, Singapore offers an excellent test bed for new nexus policies, technologies and approaches as a country that is willing to try new things and pilot them on a large scale in a relatively closed system. Its challenges around resource scarcity in a global city context mean that there is a lot to be learned from Singapore’s existing policy solutions around the nexus. It also offers an environment that is already stressed where policies can be tested for the future.

POLICY SHAPERS


92

COUNTRY CONTEX TS

COUNTRY CONTEX TS

93

POPULATION

51.19 (25th in the world)

The government’s number one focus is on job creation

GDP PER CAPITA

USD 7,508 (70th in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 87 per cent E N E R GY U S E P E R C A P I TA

2,738 kg oil equivalent

KEY CHALLENGES

WATER RESOURCES

ENERGY: South Africa’s total electricity consumption has grown by about 20 per cent over the last decade. The government has set out ambitious plans to expand the sector in an attempt to avoid another power crisis, which the country experienced in early 2008. But with more than 90 per cent of energy supplies generated from coal, key challenges relate to reducing emissions while meeting rising demand, ending power shortages and keeping electricity prices affordable for everyone. Investment has been made in renewable sources at a small scale in wind but with extensive solar projects recently connecting to the grid.

Annual freshwater withdrawals as a percentage of total resources: 28 per cent CO2 EMISSIONS

9.18 t per capita (38th in the world)

SOUTH AFRICA

policies focusing around economic development. The National Development Plan, released in August 2012, proposes the creation of 11 million more jobs by 2030, for example by expanding the public works programme, lowering the cost of doing business and costs for households and helping match unemployed workers to jobs. KEY INSIGHTS

1. The complexity of the social context in South Africa makes it a challenging environment in which to create and develop policy. Politics add further complexity with disagreement at coalition level around the right policies to pursue.

is regarded as uncoordinated despite, for example, good international links. There are a number of common communities of practice between South Africa and Australia working on water catchment management and environmental flows but government-to-government relationships are not so strong and increasingly the private sector is stepping in to develop projects in the absence of government leadership. 5. Increasing educational attainment needs continued and ongoing focus and development. THE OPPORTUNITY

WATER: In South Africa, water is a scarce commodity with an average annual rainfall of approximately 464 mm compared with a world average of 860 mm. Water in South Africa is also unevenly distributed geographically and socio-politically, which further exacerbates access. A growing population, inefficient management and lack of local capacity (qualified managerial and technical staff) as well as inadequate institutional arrangements (in water boards and municipalities) mean that water services are inadequate, particularly in rural areas and in relation to sanitation.

GOVERNANCE Constitutional parliamentary republic. Very progressive constitution, with policy sophistication but lack of capacity at local and central government level is a significant challenge. Provincial governments have limited autonomy as the central government controls funding.

POLICY SHAPERS

AREAS OF POLICY

2. In South Africa the biggest issue with policymaking is not the absence of good ideas at national level but rather their implementation. Challenges are significant when seeking to translate high level detailed policy to activity on the ground. Municipalities are seen as vehicles for delivery but generally do not have the capacity to do so efficiently.

National policy frameworks offer the opportunity for NGOs and civil society to develop local initiatives that respond to the nexus issues, and certainly opportunities exist for businesses to take the lead. The energy sector itself could act as a growth facilitator, given the extent of the large grid implementation plans developed by the South African transmission service operator.

3.There are many examples of businesses and NGO’s demonstrating clear leadership on tackling nexus issues in a joined-up fashion and seeking to build local capacity.

FOCUS

The government’s number one focus is on job creation, with core

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4. Water is perhaps South Africa’s biggest nexus issue, but the sector

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COUNTRY CONTEX TS

COUNTRY CONTEX TS

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POPULATION

63.23 million (22nd in the world)

Key challenge is to realise the ambitious emissions reduction targets set for 2050

GDP PER CAPITA

USD 38,514 (23rd in the world) E N E R GY R E S O U R C E S

V I T A L S T A T I S T I C S

Fossil fuels as a percentage of total energy use: 86 per cent E N E R GY U S E P E R C A P I TA

3,252 kg oil equivalent WATER RESOURCES

Annual freshwater withdrawals as a percentage of total resources: 9 per cent

KEY CHALLENGES

GHG EMISSIONS: A key challenge is to realise the ambitious emissions reduction targets set for 2050.

CO2 EMISSIONS

7.93 (47th highest in the world)

ENERGY: The current energy market in the UK has, up to a point, served the UK well over the past four decades. Following years of exports of both oil and natural gas, the UK became a net importer of natural gas and crude oil in 2004 and 2005, and is now importing more and more of its energy so the potential for price volatility will continue to increase. Owing to plant closures and the need to meet the projected future increases in electricity demand from the electrification of sectors such as transport and heat, the replacement upgrading of the UK’s electricity infrastructure will need around £110 billion of capital investment over the next decade. This level of investment requires the reform of the UK electricity market.

UNITED KINGDOM

WATER: Water sustainability seems to have limited engagement at the national level with the UK lacking some of the joined-up thinking and approaches to efficiency being developed across Europe. AREAS OF POLICY FOCUS

Reforming the electricity market in the UK is the key area of focus, to provide the massive investment required to deliver new infrastructure and power generation capacity. Contracts for Difference and the

GOVERNANCE Parliamentary system. Devolved local assemblies in Northern Ireland, Wales and Scotland.

POLICY SHAPERS

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development of the capacity market are the key planks of government policy to support new low-carbon generation capacity. Planning for large energy infrastructure projects is becoming increasingly problematic with protests taking place when projects are planned or in the first phases of development (as is often the case with onshore wind). There is a large number of initiatives relating to energy efficiency, including the roll out of smart metering, improving the energy efficiency of building stock and the green deal. So far, these have had mixed public response. The Green Deal under which householders can borrow money to install doubleglazing, insulation and more efficient boilers, is considered to have got off to a slow start. Smart metering is scheduled to be rolled out between 2015 and 2020. KEY INSIGHTS

1. The UK government has led the way, setting challenging targets to reduce emissions through the Climate Change Act. The Act puts in place a framework to achieve a mandatory 80 per cent cut in the UK’s carbon emissions by 2050 (compared to 1990 levels), with an intermediate target of between 34 per cent by 2020. The Committee on Climate Change (CCC) is an independent body that advises the UK and devolved governments on tackling and preparing for climate change. The CCC provides advice on setting carbon budgets

(for the UK government, carbon budgets are designed to place a limit or ceiling on the level of economy-wide emissions that can be emitted in a five-year period), and reports regularly to parliament and the devolved administrations on the progress made in reducing greenhouse gas emissions. The existence of the CCC provides a body that has a long-term view on pertinent climate changes issues that is not necessarily found in all geographies. 2. Security of energy supply has risen up the political agenda while the importance of dealing with climate change amongst government departments appears to have dissipated since the economic crisis of 2008. 3. With a quarter of the UK’s generating capacity coming to an end of its life over the next ten years, strategic decisions will need to be made that will affect the UK’s long-term infrastructure for the rest of the century. The challenge is to create the framework that will encourage companies to make the long-term investments required. THE OPPORTUNITY

Investments in infrastructure can simultaneously realise the government’s economic goals and help achieve the ambitious emissions reduction goals the UK has set.

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CONTRIBUTORS

CONTRIBUTORS

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ANNEX 3 CONTRIBUTORS The policy shapers project has welcomed insights and contributions from business, government and NGO representatives from all over the world. We thank them all for taking the time to be involved.

contributors to rese arch phase Australia  arolyn BAYLISS > director for Australia, The Climate Group C Stuart BUNN > director and professor, Australian Rivers Institute, Griffith University Tristan EDIS > editor of Climate Spectator Garry EGGER > director and professor of the Centre for Health Promotion and Research, Sydney, Australia; and Lifestyle Medicine and Applied Health Promotion, Southern Cross University Ross GARNAUT > vice-chancellor’s fellow and professor of economics, University of Melbourne; distinguished professor of economics, Australian National University Daniel KHONG > senior development manager, Places Victoria Peter NEWTON > research professor in sustainable urbanism, Swinburne Institute for Social Research, Swinburne University of Technology Dr Jamie PITTOCK > programme leader for Australia and the United States – Climate, Energy and Water US Studies Centre and ANU Water Initiative, Australian National University Chris RYAN > director and professor, Victoria Eco-Innovation Lab (VEIL) Anna SKARBEK > executive director, ClimateWorks Australia Professor John THWAITES > chair, Monash Sustainability Institute, Monash University; and chair, National Sustainability Council, Australia Tony H F WONG > director and chief executive, Cooperative Research Centre for Water Sensitive Cities; and professor at Monash University

C h i na  HEN Haiou > president and CEO, China Shenzhen Emission Exchange C Dr Xavier CHEN > vice president for strategy, Beijing Energy Club D  r FENG Fei > director-general of the State Council Development Research Centre, Department of Industrial Economics Research

POLICY SHAPERS

E u r opean Un i on

 r Victor GAO > director of the China National Association of D International Studies and Beijing Private Equity Association HUANG Guoshu > vice president, Sinew Corp JIANG Dalong (Kai Johan JIANG) > chairman, State Power Group LI Junfeng > director general of the National Centre for Climate Change Strategy and International Cooperation, National Development and Reform Commission (NDRC) Dr LIU Dengwei > director and senior engineer, Development and Research Centre of the Ministry of Water Resource MA Jun > founder and director, China Institute of Public and Environmental Affairs (IPE) MA Linjuan > assistant chief executive officer, Sinew Corp Dr QI Ye > professor of environmental policy and management at Tsinghua University School of Public Policy and Management Jiacou RINPOCHE > founder, Ci’ai Foundation TANG Wenqian > secretary general, China Renewable Energy Industry Association (CREIA) Hashi TASHIDORJEE > secretary general, Snowland Great River Environment Protection Association  WAN Yang > country director, Institute for Sustainable Communities WANG Fang > director, Ningbo Environment Exchange Dr WANG Jinzhao > division chief, Development and Research Centre of the State Council of China Dr WANG Jizhou > chairman, Suzhou Environment Energy Exchange WANG Zongting > commissioner, China Quality Certification Centre Dr XU Ting > chief engineer for the planning department, Huaqiao Government, Jiangsu Province YING Jun > head of research, Bloomberg New Energy Finance Dr ZHANG Yinghua > professor, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Science ZHANG Zhe > senior operations manager, Sina Weibo ZHAO Yanwei > deputy director for the International Cooperation Department, Shanghai Environment and Energy Exchange Dr ZHAO Yongqiang > deputy director, Energy Research Institute, NDRC

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J ohn ASHTON, CBE > former special representative for climate change to the UK foreign secretary; and founding director of E3G Ruta BALTAUSE > policy officer for renewables and carbon capture and storage, European Commission, DG Energy Bernard BIGOT > chairman, Commission on Atomic Energy and Alternative Energies, France Anthony COX > head of division, Environment and Economy Integration, OECD Lord DEBEN > chairman of the UK Committee on Climate Change Tom DELAY > CEO, Carbon Trust Harald DOVLAND > former deputy director general, Ministry of Environment, Norway Mark DRISCOLL > head of food, Forum for the Future Jason EIS > deputy director, Global Green Growth Institute (GGGI), London office Anselm EISENTRAUT > bioenergy analyst, International Energy Agency Gunnar GJERDE > former director general, Ministry of Petroleum and Energy, Norway Jaime GORNSZTEJN > head of the Brazilian Development Bank (BNDES) Limited, a subsidiary of BNDES in London Lasse GUSTAVSSON > executive director of conservation, WWF International, World Wildlife Fund (WWF) Sir David KING > special representative for climate change to the UK foreign secretary, British Foreign and Commonwealth Office Geraldine KUTAS > head of the Brazilian Sugarcane Industry Association’s (UNICA) Brussels office Carina LARSFALTEN > managing director, World Business Council for Sustainable Development (WBCSD) Imke LÜBBEKE > senior policy officer for renewable energy, World Wildlife Fund Oliver MACE > biofuels head of strategy and regulatory affairs, BP Ben MOXHAM > senior policy advisor on energy and the environment, office of the UK Prime Minister William NEALE > member of the EU cabinet of Commissioner Potočnik, DG Environment Lord OXBURGH of Liverpool > former chairman of Shell; former chair of the House of Lords science and technology select committee, UK Usha RAO-MONARI > global head of water, infrastructure and natural resources, International Finance Corporation Alexandre STRAPASSON> former head of department of sugarcane and agroenergy, Ministry of Agriculture, Brazil

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 drian SYM > executive director, Alliance for Water Stewardship (AWS) A Ignacio VAZQUEZ-LARRUSCAIN > policy officer for biofuels, DG Climate, European Commission Camilla VAMILLAA > senior advisor, The Natural Step International Carina VOPEL > head of unit for the chief economist, impact assessment and evaluation, DG Environment, European Commission Taco WESTERHUIS > senior policy advisor for Sub-Saharan Africa, Netherlands Ministry of Foreign Affairs

Ind i a Tarun DAS > former chief mentor, Confederation of Indian Industry (CII) Pramod DEO > chairman, Central Energy Regulatory Commission Arunabha GHOSH > CEO, Council on Energy, Environment and Water (CEEW) Sunita NARAIN > director general, Centre for Science and Environment (CSE); and director, Society for Environmental Communication MK NARAYANAN > governor, West Bengal Varad PANDE > officer on special duty to India’s minister for rural development Aromar REVI > director, Indian Institute for Human Settlements Shyam SARAN > former foreign secretary and former advisor on climate change to the Indian Prime Minister

russia Yuri BARON > deputy director of energy efficiency, Ministry of Energy, Russian Federation Yuri DEIKUN > director, Moscow Innovation Development Centre Tim GOULD > senior energy analyst, International Energy Agency Nigel JOLLANDS > principal policy manager, European Bank for Reconstruction and Development (EBRD) Igor LYSYKH > advisor to the governor, Krasnodar region government Michael PEDERSEN > president and CEO, RuDanEnergo Nelly SEGISOVA > independent consultant and former head of department at the Russian Energy Agency Vladimir SYROMYATNIKOV > ESCO project developer, Yakutsk

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CONTRIBUTORS

S i ngapo r e  HEONG Koon Hean > CEO, Housing Development Board (HDB) C CHEW Men Leong > CEO, Public Utilities Board (PUB) Richard HOO > group director of strategic planning, Urban Redevelopment Authority (URA) KHOO Teng Chye > executive director, Centre for Liveable Cities NG Lang > CEO, Urban Redevelopment Authority (URA) Leo YIP > chairman, Singapore Economic Development Board (EDB)

So u t h A f r i ca James AIELLO > senior project advisor for the public private partnership unit, South African Treasury Felicity BLAKEWAY > operations and special projects manager, Council of Scientific and Industrial Research, Natural Resources (CSIR) A  lan BRENT > professor and associate director, Centre for Renewable and Sustainable Energy Studies (CRSES) Mark BRUNE > chairman, Mintails Limited J enny CARGILL > special advisor in the office of the Premier, Western Cape Vernon COLLIS > engineer-architect and partner of Collis & Associates Dr Roseanne DIAB > executive officer, Academy of Science of South Africa (ASSAf) Scott DRIMIE > associate professor in the department of interdisciplinary health sciences, Stellenbosch University; and visiting research associate, African Centre for Migration and Society Megan EUSTON-BROWN > programme manager, Sustainable Energy Africa (SEA) Philip GOYNS > supply option modelling specialist, Department of Energy Ralph HAMANN > associate professor and research director, Graduate School of Business, University of Cape Town Dr Inga JACOBS > research manager, Water Research Commission Professor Mohammad KARAAN > dean of the agrisciences faculty, Stellenbosch University; and commissioner on the National Planning Commission Eiman KARAR > executive manager for water resource management, Water Research Commission Rebecca MASERUMULE > demand modelling specialist, Department of Energy Milla MCLACHLAN > co-founder of the Southern Africa Food Lab; and professor, division of human nutrition, faculty of health sciences, Stellenbosch University, South Africa Ismail MOMONIAT > deputy director-general of economic policy

POLICY SHAPERS

CONTRIBUTORS

and international financial relations, The National Treasury  ecil MORDEN > chief director of economic tax analysis, C The National Treasury Dhesigen NAIDOO > CEO, Water Research Commission Steve NICHOLLS > programme manager for climate change, water and biodiversity, National Business Initiative Edgar PIETERSE > professor and South African research chair in urban policy; and director of the African Centre for Cities, University of Cape Town Dr Gisela PRASAD > group leader, energy, poverty and development, Energy Research Centre, University of Cape Town Barbara SCHREINER > director at Pegasys Strategy and Development; former deputy director-general for policy and regulation at the department of water affairs and forestry Anthony TURTON > professor and trustee of the University of Free State, Centre for Environmental Management; and the Water Stewardship Council Trust of South Africa Tatjana VON BORMANN > manager, market transformation, WWF-SA Dr Jeremy WAKEFORD > independent economist specialising in energy and sustainability Sarah WARD > head of energy and climate change, City of Cape Town

Un i t ed S t a t e s Mark BROWNSTEIN > associate vice president and chief counsel of the US energy and climate programme, Environmental Defence Fund Daniel KAMMEN > distinguished professor of energy; and director of the Renewable and Appropriate Energy Laboratory (RAEL), University of California, Berkeley Charles ICELAND > manager of the Aqueduct Alliance, World Resources Institute Steven E. KOONIN > former under-secretary of energy for science, Department of Energy Dr Upmanu LALL > director of the Columbia Water Center, Earth Institute, Colombia University Dr Amory LOVINS > chairman and chief scientist, Rocky Mountain Institute Dr Mary D. NICHOLS > chairman, California Air Resources Board (CARB) Bruce NILLES > senior director of the ‘Beyond Coal’ campaign, The Sierra Club Glenn PRICKETT > chief external affairs officer, The Nature Conservancy Dr Richard SANDOR > chairman and CEO, Environmental Financial Products

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 aniel SPERLING > director of the Institute of Transportation Studies D (ITS-Davis), University of California, Davis Terry TAMMINEN > president of Seventh Generation Advisors; and former secretary of the California Environmental Protection Agency for Governor Arnold Schwarzenegger Dr Sonia YEH > researcher, Institute of Transportation Studies (ITS-Davis), University of California, Davis

G L OBA L PO L IC Y SHAPERS ROUN D TAB L E ATTEN D EES , 2 5 - 2 6 SEPTE M BER 2 0 1 3

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LI Junfeng > director general, National Centre for Climate Change Strategy and International Cooperation (NCSC), National Development and Reform Commission (NDRC) Sir David KING > special representative for climate change to the UK foreign secretary, British Foreign and Commonwealth Office Ma LINGJUAN > executive assistant to the president, Sinew Corp Andrew LLOYD > vice president (communication), global strategy and business development, Statoil UK Sascha MÜLLER-KRAENNER > regional managing director, Europe programme, The Nature Conservancy Ragnvald NÆRØ > director of business development, Statkraft Gavin NEATH CBE > Unilever Professor Kevin NOONE > director, Swedish Secretariat for

Environmental Earth System Sciences Betsy OTTO > director, Aqueduct project, World Resources

John ASHTON > CBE, former special representative for climate change to the UK foreign secretary; and founding director of E3G Dr Osvald BJELLAND > chairman and CEO, Xyntéo Maike BOGGEMANN > projects manager in the Shell strategy and scenarios team, Royal Dutch Shell Dr Norbert BOTH > vice president, corporate communications, Royal Dutch Shell Harry BREKELMANS > executive vice president of upstream operated assets, Shell International Exploration and Production BV Jean-Marc CAPDEVILA > nuclear advisor, Embassy of France Vernon COLLIS > engineer-architect and partner, Collis and Associates Karen DODDS > country manager, risk management UK, DNV GL Dafydd ELIS > senior analyst, Xyntéo Steve ESAU > senior advisor and project manager, Xyntéo Ruth FLOOD > partner, Madano Partnership Maria Rita GALLI > senior vice president of portfolio supply strategies and market intelligence, Eni Alison GOLIGHER > executive vice president, upstream international and unconventionals, Shell International Exploration and Production BV Wieteke GRAVEN > business advisor to the executive vice president of upstream operated assets, Shell International Exploration Production BV Professor Cameron HEPBURN > director, Vivid Economics Ltd Hannah HISLOP > global advocacy manager, Unilever HUANG Guoshu > vice president, Sinew Corp Tan KONG HWEE > regional director for Europe, Singapore Economic Development Board Jack JACOMETTI > partner, Jacometti Associates Erica JOHNSON > group executive, enterprise development, Eskom Holdings

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Institute (WRI) OUYANG Xin > analyst, Xyntéo Paul PICHÉ > vice president of corporate strategy, Statoil Simon RATCLIFFE > energy advisor, UK department for international development Ruth RAWLING > vice president of corporate affairs, EMEA, Cargill Paolo ROCCHI > senior mechanical engineer, Eni Dr Richard SANDOR > chairman and CEO, Environmental Financial Products Professor John THWAITES > chairman, Monash Sustainability Institute, Monash University; and chairman, National Sustainability Council, Australia Alexander VERBEEK > strategic policy advisor on global issues, Netherlands Ministry of Foreign Affairs Dr Gabrielle WALKER > chief scientist, Xyntéo Peter WHEELER > executive vice president, The Nature Conservancy Dr Sonia YEH > researcher, Institute of Transportation Studies, University of California, Davis

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DISPATCHES FROM THE POLICY FRONTLINE

EXAMINING THE RESPONSE TO THE WATER-ENERGY-FOOD-CLIMATE STRESS NEXUS

© Copyright Xyntéo, November 2013 registered address 3 Wesley Gate Queen’s Road Reading RG1 4AP, UK registered in England Company number 5314641; VAT registration number 857 5824 79. www.xynteo.com

Dispatches from the Policy Frontline  

Joint report by Shell, Unilever and Xyntéo examining the reponse to the water-energy-food-climate stress nexus

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