Resource Efficiency for Green and Resilient Urban

Development in the Asia-Pacific Region – The case of water –

Prepared by:

Prof. Seungho Lee

Korea University

December 2015

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Executive Summary ii

Table of Contents

1. Introduction 1

2. Issues and Challenges of Water Resources for Urban Development in Asia and

the Pacific 2

2.1 Urbanization and Water Resources 2

2.2 Key Challenges 3

3. Resource Efficiency and Resilient Urban Development 4

3.1 Eco-efficiency and Water Resource Efficiency 4

3.2 Green and Resilient Urban Development 6

3.3 Eco-efficient Water infrastructure for Green and Resilient Urban Development 8

4. Good Practices 10

4.1 Smart Water Grid in the Republic of Korea 11

4.2 3Rs (Reduce, Reuse and Recycle) Policies in Japan 12

4.3 Decentralized wastewater system and rainwater harvesting in Nepal 13

5. Policy Framework 17

5.1 Integrated Approach 17

5.2 Increase of Economic Efficiency 18

5.3 Conservation for Ecological Efficiency 20

5.4 Enhancement of Quality of Life 22

5.5 Enabling Environments 23

6. Conclusions 24

Bibliography 26

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Executive Summary

The study assesses the opportunities and challenges in achieving resource efficiency

for green and resilient urban development in Asia and the Pacific with special reference to

water. As an analytical framework, the research employs eco-efficiency and resource

efficiency approaches coupled with discussions of green and resilient urban development in

achieving sustainable water resources management in Asian cities. Attention is paid to

suggestion of appropriate policy measures on how to achieve resource efficiency and green

and resilient urban development in the region based on good practices from the Republic of

Korea, Japan, and Nepal.

Asia and the Pacific embrace the majority of the world’s mega cities and are

characterized by high growth rates of small- and medium-sized cities. The region shows a

unique pattern of urbanization and accounts for about 65% of the demographic expansion of

all urban areas in the world since the onset of the 21st century (UN-Habitat, 2013). Such rapid

pace of urbanization in the region has caused numerous problems, and may bring about many

uncertainties. Amongst them, water is one of the most challenging issues for sustainable

development.

There is an ensemble of challenges in terms of urban water management in Asia and

the Pacific. First, water resource endowment per capita in the region is much lower than

global averages. Second, water quality has rapidly deteriorated in urban streams, lakes, and

wetlands as well as major rivers in the region due to numerous polluting industries around

urban areas. Third, conventional water management systems in urban areas of the region have

proved to be inefficient. Fourth, more demands of water in developing urban centres pose a

threat to sustainability of water resources and have implications for the nexus between water

and energy. Fifth, middle-class urbanites have increased demand for various goods that use

more water resources in the industrial process. Sixth, the ecological efficiency of water use is

not adequately managed. Finally, natural disasters, i.e. floods, are expected to be detrimental

to the security and sustainability of urban areas in the region, especially coastal cities.

In order to overcome such problematic issues, innovative strategies are required for

resource efficiency and green resilience in urban development. Eco-efficiency indicates more

efficient resource use with less environmental impacts. Three principles relevant to eco-

efficiency are: 1) internalization of externalities; 2) adequate pricing of resources and

pollution; and 3) removal of perverse subsidies and incentives for compliance.

Together with eco-efficiency, the study pays attention to resource efficiency with

reference to water resources. Resource efficiency is defined as the rationing of resource

inputs on one hand to economic outputs, and social benefits on the other, and encapsulates the

perspectives of a life cycle and value chain. This approach is useful in making water supply

and consumption more effective. The quantity of water used in production and relevant

resources have various implications with regard to water resource efficiency: 1) distribution

and consumption; 2) pollution load generation and emission intensification; and 3) urban

water and sanitation services operation with high energy efficiency (the nexus between water

and energy).

Adverse impacts of urbanization on ecosystems can be ameliorated through the

adoption of green and resilient urban development paradigms, such as eco-city, smart growth,

urban resiliency and green buildings. Eco-city is referred to as human settlements in a sound

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relationship with ecosystems without giving pressure on their carrying capacity. Eco-cities

consume fewer resources and reduce amount of wastes and are associated with the idea of

compact cities that advocate reduction of commuting distance and decrease of energy use in

multiple-home buildings. This leads to easier maintenance of water infrastructure and

conservation of ecosystems (wetlands, small streams and biodiversity).

Smart growth embraces a series of green ideas, including more compact growth, use

of existing infrastructure, and investment in system maintenance, and these elements can help

decrease costs, conserve and protect water resources in the long run. In a similar context,

urban resiliency can strengthen the capacity of cities to implement diverse, multi-faceted,

inclusive, and well-conceived ways in order to adapt to global environmental changes. One of

the best ways to increase urban resiliency is to adopt green buildings. This type of building

uses fewer resources such as water and energy whereas providing positive impacts on the

health of those who live and work in them.

Water resource efficiency is instrumental in increasing efficiency in water

management for green and resilient urban development. In coping with challenges in

urbanization, infrastructure is one of the key areas that Asian cities should focus on. The idea

of eco-efficient water infrastructure for green and resilient urban development is useful. The

combination of physical (dams, embankments, piped water supply facilities, and wastewater

treatment facilities) and non-physical infrastructure (laws, regulations, regulatory programs,

government bureaus and civil society groups) is necessary for achieving an optimal level of

water utilization and less burden to limited water resources, especially for urban areas in the

region.

As good practices, the study highlights the experiences of three countries - the

Republic of Korea, Japan and Nepal. The Korean government has embarked on the Smart

Water Grid (SWG) Research Project since 2012 in order to manage the limited water

resources efficiently. SWG is considered as an innovative solution to achieve efficiency of

water resources management through the application of information and communication

Technologies (ICTs), such as advanced metering infrastructure (AMI), smart sensors, and

smart servers, etc. in water and wastewater treatment, distribution and supply systems.

Japan’s 3Rs (Reduce, Reuse and Recycle) approach is something to do with the idea of

‘Sound Material-Cycle Society’ which was initiated in 2012. This society works towards

conservation or minimization of the natural resources consumption and reduction of

environmental loads, as much as possible. Related policies are prevention or reduction of

wastes, encouragement of cyclical methods of products, i.e., reuse, recycle, and heat recovery

and recyclables (3Rs). In this scheme, environmentally friendly alternatives are taken into

account in order to move towards a zero waste society.

The decentralized wastewater treatment system and the rainwater harvesting system

installed at a School in Tokha, Kathmandu show the efforts to improve sanitation services and

augment water supply together with consideration of sustainability in the rapidly expanding

urban areas. The decentralized wastewater treatment system helps to enhance sanitation,

adequate water supply in community or household level, to reduce the load of wastewater,

and to decrease negative environmental impacts caused by wastewater. Rainwater harvesting

plays a key role not only in providing additional water resources but also reducing flood (i.e.

flashflood), soil erosion and contamination of surface water with pesticides and fertilizers

from rainwater run-off.

The policy framework of this study encompasses five policy measures. First, the

integrated approach is suggested. This approach necessitates the shift from piecemeal to

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integrated and from centralized single-purpose to decentralized and multipurpose policies.

Such policies and management systems require an integration of water supply, rainwater

harvesting, wastewater treatment, solid waste (sludge) management, recycling and disaster

prevention measures. More specifically, cities need to consider linking urban water issues

with other non-water issues in an integrated fashion, i.e. transport and housing within the

framework of green and resilient urban plans, the nexus between water and energy, and land

use planning.

The second policy measure is the increase of economic efficiency. Economic

efficiency for urban water management can be increased through various ways. As non-

structural methods, municipal governments can consider the adoption of sound water tariff

systems and the water budget approach. For instance, cities are recommended to employ the

system of increasing block tariffs, which are also called, ‘conservation pricing’. The

examples of structural measures are the reduction of water losses through leakage and the

prioritization of retrofitting existing infrastructure rather than constructing new infrastructure.

Distribution losses are much larger than production losses, and therefore, primary attention

should be paid to the distribution losses. Public utility authorities in urban areas should

consider a pursuit of ‘fix-it-first’ policy, which can improve of finances, conserve water

resources, and lower costs for their customers.

The conservation of ecological efficiency is the third policy measure in order to

revitalize natural environments in urban areas and provide practical benefits such as the

improvement of air and water quality, living conditions, water-related disaster prevention,

and biodiversity. A fast track to increase ecological efficiency is to value ecosystem services

in an adequate manner, which requires a prerequisite, the establishment of proper institutional

settings, such as the Payments for Environmental Services (PES) system that values

environmental services for conservation. The adoption of sustainable landscaping implanted

with local plants can save large amounts of water and guarantee sustainability in urban areas

in which landscaping in residential and commercial buildings is increasing in Asia and the

Pacific.

As the fourth policy measure, the enhancement of quality of life is recommended.

Universal access to clean drinking water and adequate sanitation services needs to be

guaranteed in cities in the region, and human health, livelihoods, gender quality and

economic development should be considered in a comprehensive way. Also, priority should

be given to policies on how to empower the public, in order to increase resource efficiency

and achieve green and resilient urban development. Small-scale solutions for water supply,

such as rainwater harvesting, rooftop gardening and water reuse and recycling should be

emphasized. Together with central or federal governments, municipal governments should

advocate policies and plans for enhancing the capacity of urban dwellers to prepare for floods

and respond to disaster and recovery.

Enabling environments are the fifth policy measure and the solid platform in

achieving sustainable water management in urban areas. A good set of clear legal frameworks

for the water sector should be introduced together with consideration of urban water issues.

In addition, municipal governments in the region should mobilize funds to ensure financial

sustainability through adequate levels of water tariffs or taxes and promotion of consumption

pattern changes by education and demand management. Private sector participation should be

considered for introducing cutting-edge technologies, management know-how, and additional

funding from the private sector. Stakeholder participation is imperative in identifying

opportunities to decrease water demand or make existent systems more efficient.

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1. Introduction

The magnitude of urbanization at the global level is associated with not only the

concentration of resources, people, capital, and technologies but also patterns of resource

consumption and its pressure on the environment. Cities require approximately 80% of the

world’s energy and claim the same share of CO2 emission. Additional pressures from urban

development have been put on water supplies, waste collection and treatment systems,

biodiversity and other crucial resources (Engelke, 2012).

Urbanization is rapidly taking place in Asia and the Pacific. In 2014, approximately

48% of the region’s population (or more than 2 billion people) lived in urban areas. The share

of urban dwellers in the region has been rising over the last 25 years as a result of natural

population growth, rural to urban migration and the reclassification of rural areas into urban

areas. An estimated 120,000 people are migrating to cities on a daily basis (UNESCAP,

2014a). By 2018 more than half of the regional population will live in urban agglomerations.

In just over 30 years from this milestone, no less than two-thirds of the region will be urban,

or around 3.2 billion people.

Whilst a complexity of challenges remains in cities in terms of resource efficiency

and sustainability, cities provide new opportunities to enhance global sustainability by

promoting low-carbon and resource efficient urban development. This window of opportunity

leads to improvement of well-being, sustainable life styles and conservation of natural

resources for future generation in urban development.

This study appraises the opportunities and challenges in achieving resource

efficiency for green and resilient urban development in Asia and the Pacific with special

reference to water. As an analytical framework, the research employs eco-efficiency and

resource efficiency approaches coupled with discussions of green and resilient urban

development in achieving sustainable water management in Asian cities. The case studies are

drawn from the experiences of the Republic of Korea, Japan and Nepal which reflect the

extent to which cities can contribute to enhancement of urban development through adoption

of green and resilient and resource efficiency approaches for water management. As policy

framework, the report suggests five policy measures. The first and overall principle is an

integrated approach for resilient urban development, and the second measure is to increase

economic efficiency. The conservation for ecological efficiency is also necessary as the third

measure, and the enhancement of quality of life is emphasized as the fourth measure. Last,

the study recommends an establishment of enabling environments.

The first part of the report pays attention to various issues and challenging factors of

resources for urban development in Asia and the Pacific. A review and discussion on resource

efficiency, and green and resilient urban development are followed with a special focus on

eco-efficiency and its relevance to urban water management. Fourth, the research refers to

good practices from the Republic of Korea, Japan, and Nepal as benchmarking cases. These

cases illustrate sustainable ways of urban water management highlighting the significance of

structural and non-structural measures. The five policy suggestions are discussed in the final

chapter.

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2. Issues and Challenges of Water Resources for

Urban Development in Asia and the Pacific

2.1 Urbanization and Water Resources

Sustainable urban development is becoming one of the imperative issues. Over half

of the world’s population (54 %) live in cities in 2014, and the urban population grows by 2

people every second (UN-Water, 2013). Asia and the Pacific embrace the majority of the

world’s megacities and are characterized by high growth rates within small-and medium-

sized cities. The region shows a unique pattern of urbanization after the turn of the new

millennium and accounts for approximately 65% of the demographic expansion of all urban

areas in the world since the onset of the 21st century (UN-Habitat, 2013). The new century

can be dubbed as the ‘Asian Urban Century.’ In 2014, about 48% of the total regional

population, which is more than 2 billion people, lived in urban areas. The region still has

large number of population living in informal settlements/slums. For example in 2009, more

than half a billion people in the region continued to live in slums, equal to 30% of the urban

population (a decrease from 50% in 1990).The urban population is projected to reach 3.3

billion, which accounts for 63% of the total population in the region by 2050 (UNESCAP,

2014a; UN-Habitat, 2013)

Such a rapid pace of urbanization in the region will cause many possible challenges.

National governments will need to mobilize a massive amount of resources for housing,

water and energy infrastructure, and other physical elements of the built environment together

with meeting tremendous resource and waste implications. Without urgent actions, cities in

the region will be confronted with bitter realities of their sustainable development being

undermined due to formidable challenges, particularly related to resource consumption

patterns (Engelke, 2012; UN-Water, 2015).

Water is one of the most challenging issues for sustainable development. Water

consumption per capita has increased in accordance with fast urbanization in developing

countries because of two reasons. First, urbanization entails an increase of energy and goods

production, which requires more freshwater consumption. For instance, coal-based power

plants and nuclear power plants use a vast amount of freshwater. Thermal power is expected

to be responsible for a third of China’s industrial water withdrawals in 2030 (Engelke, 2012;

UN-Habitat, 2011a).

Second, people in urban areas tend to consume more water when their income level

increases. Piped water supply systems encourage rich urbanites to consume more water

through personal use (showers, toilets), household appliances (dishwashers), and other direct

forms of use (watering gardens and lawns or washing cars). Indirect water use by urbanites

impacts on water availability, such as urban energy, increased goods items and even more

food consumption (virtual water) (Engelke, 2012).

In addition to these, more challenges remain with regard to urban water management

in Asia and the Pacific. Water quality control is a lingering problem in many cities, and the

situation is increasingly more acute than before, which jeopardizes the amount of drinking

water available. A lack of adequate sewage treatment facilities and well-connected sewers

exacerbates the level of water pollution in numerous urban streams in the region.

Water-related disasters should draw more attention. The region is one of the most

disaster-prone regions in the world, and in 2013, water-related disasters claimed over 17,000

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lives, which were estimated at 90% of all water-related disaster deaths at the global level.

Over US$ 51.5 billion were recorded as economic losses. One of the side-effects of

urbanization is that more highly valuable economic assets and people are situated in disaster-

prone areas such as floodplains, especially in large cities in the region (UN-Water, 2015).

2.2 Key challenges

There is an ensemble of challenges in terms of urban water management in Asia and

the Pacific.

First, water resource endowment per capita in the region is much lower than global

average. Population density of the region is 1.5 times higher than the global average with the

lowest fresh water availability per capita of all global regions. Poor management of water

resources decreases per capita availability. The availability per capita in the region is second

lowest in the world because of population size and misuse and overuse of the supply

(UNESCAP and KOICA, 2012).

Second, water quality has rapidly deteriorated in urban streams, lakes, and wetlands

as well as major rivers due to the establishment of polluting industries in the outskirts of main

cities or suburban areas in the region. The grave situation of water pollution worsens the

availability of clean water for drinking, manufacturing and energy generation purposes in

cities. Poor water supply and sanitation services can spawn detrimental impacts on the

economy because of increased risk of disease and premature deaths. An aggregated US$ 2

billion per annum in financial costs and US$ 9 billion per annum in economic losses due to

poor sanitation services are estimated in the countries like Cambodia, Indonesia, the

Philippines, and Viet Nam (UNESCAP and KOICA, 2012).

Third, conventional water resource management systems in urban areas of the region

have proved to be inefficient, which consist of a centralized piped water supply system,

single water uses and large-scale and centralized wastewater treatment systems. For example,

water losses in the course of delivery are defined as ‘non-revenue water’ that should

adequately be addressed when considering an upgrade, retrofitting or construction of water

management facilities. The total cost for non-revenue water can reach around US$ 14 billion

per annum at the global level, of which over one third takes place in developing countries

(UNESCAP and KOICA, 2012).

Fourth, demands of water in rapidly developing urban centres pose a threat to

sustainability of water resources in the region, and negative impacts are often extended to

surrounding environments thanks to urban sprawl. This phenomenon has implications for the

nexus between water and energy, since more electricity is required in the course of water

distribution if urban areas are expanded and less densely populated.

Fifth, wealthy middle-class urbanites have begun to scramble for various goods that

demand more water resources in the industrial processes. The global supply chain has paved

the way for consumers in urban areas to have easier access to various products, and

consumers have been encouraged to consume more agricultural and industrial goods, which

require more water. Such a change of consumption patterns puts heavy pressure on water

availability in cities.

Sixth, the ecological efficiency of water use is highly variable in the industrial sector

and does not necessarily reflect the availability of water in the region. According to

Alexander and West (2011), some water-stressed countries have greatly developed industrial

sectors that use much more water in producing US$ one of GDP than those countries that are

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rich in water resources in Asia-Pacific region.

Seventh, natural disasters are expected to be detrimental to the security and

sustainability of urban areas in the region. Economic, social, and strategic advantages have

led people to settle in these areas, and urbanization has intensified the trend of population

growth in the cities of coastal zones. The share of people living in low-elevation coastal

zones (below 10 meters above the sea level) is more than 80% in Australia and New Zealand.

In 2000, there were around 144 million people living in low-elevation zones in China, 63

million people in India, and 63 million people in Bangladesh (i.e., 46% of the country’s total

population). Some of the largest and the most important cities are also situated in these zones,

such as Dhaka, Shanghai, Guangzhou, Mumbai, Ho Chi Minh City, and Bangkok (Engelke,

2012). Climate change will intensify the frequency and severity of oceanic storms, which

would impact directly upon the cities in the coastal zones. South and Southeast Asian cities

are particularly subject to tropical storms (cyclones, monsoons and typhoons). In addition,

low-lying urban areas can also be damaged by long-term sea level rise.

Together with human casualties, cities in coastal zones need to prepare how to protect

their infrastructure, including power plants, water supply and sanitation facilities, transport

infrastructure (roads, railroad and transit lines, underground tunnels, and waterfront airports),

port facilities, landfills, and the electrical grid (Engelke, 2012; ULI and Ernst & Young, 2013).

3 Resource Efficiency and Resilience

3.1 Eco-efficiency and water resource efficiency

Eco-efficiency is defined as ‘the delivery of competitively priced goods and services

that satisfy human needs and bring quality of life, while progressively reducing ecological

impact and resource intensity throughout the life cycle to a level at least in the line with the

earth’s carrying capacity’ (WBCSD, 2000). In other words, eco-efficiency is an approach to

promote more added values with less environmental impacts. The term, ‘eco’, indicates both

economy and ecology. The simple equation illustrates how to measure eco-efficiency in

industrial manufacturing processes, cities, and nations as below.

Eco-efficiency =

The practicability of the concept is associated with not only its applicability to industrial

activities and their environmental impacts but also its ability to reflect two of the three pillars

of sustainable development, the environment and economy (Burritt and Saka, 2006;

Ehrenfeld, 2005). WBCSD (2000) recommends three principles with regard to government

policies for eco-efficiency. First, externalities should be internalized, and second, resources

and pollution should be priced adequately. Third, perverse subsidies should be removed, and

incentives should be given to those who show good compliance with regulations for pollution

abatement. These principles are applicable to the water sector.

Similar with eco-efficiency, it is worth paying attention to the discussion of resource

efficiency. Resource efficiency is defined as ‘the ratio of resource inputs on one hand to

economic outputs and social benefits on the other’. Relevant technologies or policy measures

lead to bringing in more benefits from limited environmental resources, which indicates

Product or service value

Environmental influence

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decoupling between resource consumption and economic growth and resonates to the essence

of ecological and economic efficiency together with social benefits (Werner and Collins,

2012). This is an innovative approach to resource consumption by reducing the total

environmental impact of the production and consumption of goods and services from raw

material extraction to final use and disposal. This approach adopts the perspectives of a life

cycle and value chain (Jacobsen, 2014; UNEP, 2012).

Resource efficiency for urban areas plays a pivotal role in providing employment,

health, education and quality of life and channeling, processing and utilizing resources. More

sustainable patterns of consumption and production should be introduced to society by cities,

and municipal governments should shed light on the opportunity to improve resource

efficiency, decrease CO2 emissions, reduce environmental risks and safeguard ecosystems.

This approach is useful in making water supply and consumption more effective.

Cities can save water by up to 30% through a small scale of investment and behavioral

change and save energy in existing buildings by 30-50% through behavioral change and

green technologies based on the approach of water resource efficiency. The approach helps

reduce the needs and operating costs of infrastructure in the future, including water, waste,

transport and energy which amounts to US$ 41 trillion (UNEP, 2012).

Water resource efficiency is related to not only water but also non-water issues. The

quantity of water used in production and relevant resources have various implications with

regard to water resource efficiency: 1) distribution and consumption; 2) pollution load

generation and emission intensification; and 3) urban water and sanitation services operation

with high energy efficiency (the nexus between water and energy). Figure 1 shows the

schematic framing of the urban water cycle, and efforts to improve water resource efficiency

should be made throughout the process in relation to other resource consumption (Jacobsen,

2013; 2014).

Figure 1. Schematic Framing of the Urban Water Cycle.

Source: Jacobsen (2014). Originally from Waterboard Groot Salland, the Netherlands, 2014.

In order to achieve a good level of water resource efficiency, the status and trends of

water resources should be well understood in both quantitative and qualitative terms, physical

processes including retention capacity, flow regulations, and water recycling, and habit

structure and functioning. More importantly, there should be social consensus that economic

development should not relentlessly be pursued at the expense of the sustainability of

ecosystems including water environments (Werner and Collins, 2012).

Water resource efficiency can be gained not necessarily through an increase of

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ecological and economic efficiency within the hydrological cycle but also an awareness of

interactions with other resources. In particular, urban water management encompasses

profound implications for energy and food security. For example, policy measures and plans

for increased water resource efficiency have to be established reflecting various targets for

energy reduction and energy use efficiency. Relevant policy shifts should be pursued from the

narrow aim of water use efficiency to a comprehensive objective of sustainable use of all

natural resources in urban settings (Werner and Collins, 2012).

Water resource efficiency for green and resilient urban development should be

incorporated into green growth from social, economic and environmental perspectives. As for

economic aspects, urban water management based on water resource efficiency helps scale up

economic well-being without taking a toll on the environment and overexploiting water

resources. In this context, ecological and economic efficiency is both considered and needs to

be in equilibrium.

Nevertheless, policy measures on water resource efficiency do not guarantee gradual

or declining water consumption or sustainability in society. For instance, urbanites would be

likely to consume more water if economic efficiency were increased. Ecological resilience

should be taken into account simultaneously together with economic efficiency.

Ecological and economic efficiency for water meets part of the requirements for

sustainability. Sustainability is completed with the consideration of social perspective that

includes various subsectors, i.e. health, employment, job satisfaction, social capital and equity.

Furthermore, a fair allocation of benefits between different stakeholders is a key to

achievement of green growth with regard to water resources management (Ministry of Land

and Transport and K-Water, 2012; Werner and Collins, 2012).

3.2 Green and Resilient Urban Development with regard to water

As discussed above, urbanization is a major phenomenon across the region, and this

trend has given serious impacts on ecosystems, including water environments. In order to

avoid detrimental impacts on the environment, it is urgent to adopt green and resilient urban

development pathways. Here, a myriad of efforts are introduced, the Eco-City approach,

Smart Growth, Urban Resiliency, and Green Buildings.

Eco-city is referred to as human settlements in a sound relationship with ecosystems

without overdue and unsuitable giving pressure on their carrying capacity. Eco-cities

consume fewer resources and reduce an amount of wastes. The concept of eco city stems

from urban ecology dating back to the 1970s. Since then, there have been several ideas

developed, i.e., restoration of urban environments, promotion of local agriculture and

development of vibrant communities (UNESCAP and KOICA, 2012).

This approach is often associated with the idea of compact city. Compact cities often

prefer to introduce mass transit options, i.e. buses, trams, subways, and trains, which can

entail energy savings in the transport sector. Whereas urban sprawl often triggers hefty

investment in new infrastructure in the outskirts of cities, compact cities can decrease such

investment, thereby resulting in providing good quality services of water and electricity.

Significant changes are related to integration of green spaces that entail water, land,

forest, energy, and socio-economic benefits. Compact cities reduce commuting distance and

decrease energy use in multiple-home buildings, which culminates in reduction of energy

consumption and an increase of energy efficiency (UNCRD and UNDESA, 2012). Water

infrastructure is more easily maintained in compact cities, and if a problem occurs, authorities

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can detect and retrofit the problem quickly. Whilst the apparent economic benefits are

something to do with less construction costs, environmental benefits from compact cities

include conservation of ecosystems, i.e. wetlands, small streams, and biodiversity thanks to

giving more room to nature.

Since major facilities and buildings are concentrated in city centers, the residents of

compact cities do not necessarily need to travel, and streets are well-connected and workable.

Densely populated, well-connected streets, and highly developed mass transit systems

discourage urban dwellers from driving private cars, which eventually results in reducing

Green House Gas (GHG) emissions (UNESCAP & KOICA, 2012).

Smart growth encompasses a series of green ideas, including more compact growth,

use of existing infrastructure, and investment in system maintenance, and these elements can

help decrease costs and make water resources conserved and protected in the long run. This

approach advocates development that enhances the community, economy, public heath, and

the environment. More compact development leads to shorter transmission systems, which

improves operation efficiency and reduce the possibility of water loss through leakage. There

are 10 principles for smart growth that have been developed in the US as seen below (EPA,

2006).

Smart Growth Principles

1) Mix land use

2) Take advantage of compact building design

3) Create a range of housing opportunities and choices

4) Create walkable neighborhoods

5) Foster distinctive and attractive communities with a strong sense of place

6) Preserve open space, farmland, natural beauty, and critical environmental areas

7) Strengthen development and direct it toward existing communities

8) Provide a variety of transportation choices

9) Make development decisions predictable, fair and cost-effective

10) Encourage community and stakeholder collaboration in development decisions

One of the key issues in smart growth is to make urban development more predictable.

A prerequisite to this is to ensure that communities should have a good understanding of

future water availability and the feasible strategies to safeguard water quality. Then, a

realistic and sustainable approach to growth can be strongly supported by local communities,

which act to enhance efficiency and take good care of water quality and future supply (EPA,

2006).

When broadly accommodating natural resource shortages and generalized climate

stress, the definition of urban resiliency is referred to as the capacity of cities to implement

diverse, multi-faceted, inclusive, and well-conceived ways in order to adapt to global

environmental changes. A resilient city could effectively reduce its exposure to external risks,

i.e. commodity-driven shocks (e.g. oil) or climate change-induced shocks. A city is secured

through successful management of this process when many citizens have access to the

benefits thanks to the reduced risk exposure (Engelke, 2012).

In order to increase urban resiliency, one of the best methods is to adopt green

buildings. Such buildings are designed to use fewer resources such as water and energy

while providing positive impacts on the health of those who live and work in them. Designers

for green buildings take into serious consideration several factors engaged in the design,

8

construction, and use of the building in order to decrease water and energy use without

compromising human health (UNESCAP and KOICA, 2012).

The evidence from the United States shows that such buildings are slightly more

costly than conventional buildings (around 2%) whereas bringing in long-term benefits. Such

green design method would create large benefits for a community, region and country, i.e.

water and energy savings, avoidance of CO2 emissions, an increase of renewable energy

investments, health and productivity gains, creation of more jobs, and financial savings

(Engelke, 2012). Net gains from the widespread of green buildings can be guaranteed when

‘green communities’ are established considering socio-economic and environmental factors.

The examples are population density levels, the combination or separation of land use types

(housing, retail, commerce), urban transport and water and energy infrastructure, and the

types of technologies in various sectors (Engelke, 2012).

3.3 Eco-efficient Water Infrastructure for Green and Resilient Urban

Development

Water resource efficiency is instrumental in increasing efficiency in water

management for green and resilient urban development. As discussed above, there are

numerous approaches to achieving sustainability for urban development with regard to water,

such as eco-cities, smart growth, urban resiliency, and green buildings. In coping with

challenges in urbanization, infrastructure is one of the key areas that Asian cities should focus

on. Although many fields require an urgency to introduce basic and essential infrastructure,

water is one of the most fundamental sectors to be highlighted. It is imperative to urgently

provide and adequately maintain water infrastructure in Asia and the Pacific with the

framework of eco-efficiency for green and resilient urban development.

Water infrastructure indicates physical infrastructure such as dams, embankments,

piped water supply facilities, wastewater treatment facilities, sewers, and aqueducts. Also,

non-physical infrastructure or non-structural measures are emphasized, i.e. institutions such

as laws, regulations, regulatory programmes, and organizations such as government bureaus,

private sector players and civil society groups including environmental NGOs. In order to

achieve eco-efficiency of water infrastructure in cities, it is necessary to shed light on the

dimensions of physical as well as non-physical infrastructure issues when relevant policies

and programs are established.

Eco-efficient water infrastructure is defined as the combination of physical and non-

physical infrastructure in the water sector for achieving an optimal level of water utilization

and a less burden to limited water resources (See Figure 2). The approach of eco-efficient

water infrastructure resonates the life cycle principles in planning, design, construction,

operation and maintenance. Over the last few years, UNESCAP has undertaken several

projects for establishment of eco-efficient water infrastructure in the region with special

reference to institutional frameworks (the Philippines and Indonesia) and pilot projects (green

school in the Philippines) (UNESCAP, 2014b).

Particular attention is paid to the application of eco-efficient water infrastructure into

urban areas from the green and resilient perspectives. Green and resilient urban development

requires a paradigm shift of urban design and planning considering less environmental

impacts. Conventional urban development encompasses single land use, large-scale

development, wider roads and expressways, heavy built environments, fossil-fuel vehicles,

9

Figure 2. Concept of Eco-Efficient Water Infrastructure

Source: Modified based on UNESCAP (2014b).

building with high energy consumption, and top-down decision-making. The new approach

embraces multiple land use, compact development, walkable streets, more space for the

environment, green public transport, green buildings and community-centered and bottom-up

decision making.

Such urban policy shifts will have a positive impact on an increase of water resource

efficiency and will lead to establishment and operation of eco-efficient water infrastructure.

For instance, compact development instead of large-scale new urban development can reduce

the cost of installation of water pipelines, sanitation networks, and electricity for pumping

and delivering water for a long distance. Green buildings require less water for residents and

workers in the premises thanks to various eco-efficient water infrastructure facilities,

including rainwater harvesting, water reuse, and water recycle. Figure 3 shows the concept of

eco-efficiency water infrastructure for green and resilient urban development.

Figure 3. Eco-Efficient Water Infrastructure for Green and Resilient Urban Development

Source: author.

10

4 Good Practices

4.1 Smart Water Grid in the Republic of Korea

The Smart Water Grid (SWG) is a smart approach to increasing efficiency of water

resources management via Information and Communication Technologies (ICT). The

definition of SWG is referred to as an innovative system to achieve efficiency of water

resources management through adoption of various ICT, i.e. Advanced Metering

Infrastructure (AMI), smart sensors, and smart servers and design, and operate relevant

systems for households, agriculture, industries, and ecosystems.

In simple terms, the SWG indicates a network for smart water resources management

based on various ICT methods (Water Innovations Alliance, 2012). Detailed sectors include

management of various water resources, i.e. rivers, rainwater, groundwater, treated

wastewater, and desalinated water, and production and distribution of water, treatment and

reuse or recycle of water (Lee, 2014) (See Figure 4).

Figure 4. Flow of Smart Water Grid

Source: Modified based on Farhangi (2010).

Technical advancement and policy measures through SWG can serve as solutions to

address an array of challenges in urban water distribution and sewage treatment systems,

11

ecosystem rehabilitation in urban areas and to minimize damages from natural disasters such

as droughts and floods. More specifically, SWG solutions are useful in tackling issues as

follows (Brzozowski, 2011).

Water conservation

Alternative water resources including water reuse and recycling

Decentralized water treatment and sewage treatment

Investment in urban water infrastructure

Preparedness for climate change and population growth

The nexus between water and energy, i.e. water pumping and demand management for

electricity efficiency

The Korean government has embarked on a four-year research project to promote

SWG since 2012. The Smart Water Grid Research Project aims to achieve water security

through efficient distribution of water resources in the first phase. The first sub-project

primarily focuses on development of alternative water resources by utilizing various water

resources, i.e. river, groundwater, rainwater, sewage, and seawater.

The purpose of the second phase is to evaluate the current distribution systems in the

country and assess the situation of water scarcity faced with climate change. In addition, the

study will pay attention to establishment of the Integrated Water Resources Management

(IWRM) system through SWG between regions, urban and rural areas, cities, and sectors.

The third phase highlights the efforts to install and operate real-time and optimal operation

technologies and develop smart meters, sensors, and AMI and operation networks (SWG

Research Group, 2014).

Careful consideration is underway in choosing pilot projects, and amongst them is

the application of SWG into Jeju Island. The island is one of the most popular holiday

destinations among holidaymakers from mainland and overseas Korean. Water resources in

the island are mostly from groundwater resources, because there are no major surface water

bodies such as rivers and lakes. An average precipitation per annum in the island reaches the

range between 1,500 and 1,800 mm. The abundant precipitation well replenishes groundwater

tables and is providing sufficient amount of water for local residents (Woo et al., 2013).

Such sufficiency does not last forever. New developments in urban and semi-urban

areas have rapidly accelerated the speed of urbanization, which have accompanied side-

effects on the island, including negative impacts on unique ecosystems. Groundwater

resource is likely to run out in the future if urbanization, population growth, and tourism

accelerate much faster and further. A growing level of pollution throughout the island can

also pose a grave threat to the quality of groundwater resource. In addition, water resources

are unevenly distributed in the island, which increases vulnerability in water supply,

especially in the western part of the island (SWG Research Group, 2014).

The pilot project for Jeju Island is geared towards establishment of multi-water

supply systems that can nurture the capacity of self-reliance in water supply. The systems will

be comprised of desalination plants, rainwater harvesting, and cutting-edge water treatment

facilities, which would be inter-connected through smart water facilities, i.e. smart meter,

smart sense, and AMI. Ultimately, there would be more reliable access to clean water through

SWG throughout the seasons and regardless of climate change (SWG Research Group, 2014)

(See Figure 5).

12

Figure 5. Smart Water Grid Pilot Project in Jeju Island

Source: SWG Research Group (2014).

4.2 3Rs (Reduce, Reuse, and Recycle) Approach in Japan

Waste management in cities often gives various implications to water management in

developing countries. For instance, highly contaminated leachate from untreated garbage

seeps into groundwater resources, the major drinking water sources for many urbanites in

Asia and the Pacific. The magnitude of water stress in the region is immense, and challenges

are related to not only how much water can be secured (quantity) but also how clean water

can be sourced (quality). More emphasis should be placed on enhancement of water quality

against untreated industrial discharges and municipal sewage, and agrochemicals in suburban

areas (Mohanty, 2012).

In this context, Japan proposed the idea of ‘Sound Material-Cycle Society’ in 2012,

which is defined as a society where the patterns of natural resource consumption is changed

towards conservation, and environmental loads will be decreased to a great extent. These

tasks can be completed through prevention or reduction of wastes, encouragement of cyclical

methods of products, i.e. reduce, reuse, recycle, and heat recovery, and adequate disposal of

circulative resources or recyclables (3Rs) (UNCRD and UNDESA, 2012).

The 3Rs approach is an epitome for a policy framework to promote resource

efficiency for green and resilient urban development in the region. In this scheme,

environmentally friendly alternatives are taken into account for a society in order to move

towards a zero waste society. The society should also prepare potential impacts of increasing

wastes on water quality, public health, economy, and ecosystems (Mohanty, 2012) (See

Figure 6).

南 北

西

東

Multi-Smart

Water Systems

Flood Prone

Areas

Desalination

Cluster

High precipitation, dry

streams Droughts &

Floods

13

Figure 6. 3Rs Approach of Japan to Resource Efficiency and a Zero Waste Society

Source: Mohanty (2012).

Primary attention is placed to the challenge of inappropriate disposal of wastes and

hazardous cycling activities, especially in developing countries in Asia and the Pacific. Japan

advocates the market for waste management and recycling activities in the region, which can

be enlarged up to a worth of US$ 35 billion by 2020 by not only transferring cutting edge

technologies but also offering institutional capacity building (UNCRD and UNDESA, 2012).

As a good practice, the City of Kitakyushu is discussed. The city has been committed

to transforming itself into an ‘Eco-Town’, which is the first case in Japan and has

endeavoured to achieve a resource efficient and zero waste city together with its willingness

to pursue green growth in the long-term. Political commitment and relevant plans and

policies are prerequisites to a pursuit of resource efficiency and minimum waste under the

framework of green growth. In addition, the achievements have been possible through multi-

stakeholder dialogues between stakeholders.

There have been over 80 projects with an investment of more than Japanese Yen 66

billion (US$ 550 million) in the project, including 16 research facilities and 29 business

facilities. Benefits from these efforts are a vast scale of CO2 emission, resource savings, and

economic development. The city has been active in fostering international cooperation with

cities in other countries, i.e. the City of Surabaya, Indonesia. In Surabaya, a new solid waste

management system was introduced with community-based composting in 2002 and a 30%

of reduction of reclaimed solid waste was achieved (Mohanty, 2012; UNCDR and UNDESA,

2012).

4.3 Decentralized Wastewater Treatment System and Rainwater

Harvesting System in Nepal

Nepal is endowed with abundant water resources that are estimated at around 22

14

billion m3 per annum. In 2006, a 95.6% of water resources in the country has been allocated

for the agricultural sector, only 3.8% for households and 0.3% for industries (ADB and

ICIMOD, 2006). Looking at situations in urban water management, water scarcity and

groundwater depletion, and deterioration of public health owing to inadequate sanitation

services give detrimental impacts on economic development, quality of living, and ecosystem

services. Such challenges are compounded by adverse impacts of climate change, which has

caused socio-economic damage with an estimation of 1.5 to 2% of the current GDP per

annum (about US$ 270-460 million per annum based on prices in 2013) (Uprety, 2014).

In order to resolve the challenges, the country has recently been supported by

UNESCAP in setting up a strategy through the Eco-Efficient Urban Water Infrastructure

Development Project. The project includes an implementation of pilot demonstration project

on eco-efficient water and energy infrastructure in the peri-urban area of the Kathmandu

Valley. In the course of the project, special emphasis is placed on the development of

rainwater harvesting and decentralized wastewater treatment facilities combined with the

concept of green school in the Kathmandu Valley.

Sathya Sai Shiksha Sadan was selected as the pilot project school, which is located in

Tokha, Kathmandu, and 4 km north of Kathmandu City. There are over 450 students and 50

teachers, and two dormitory buildings accommodate the students. The area around the school

displays a rapid urban development pattern, and the construction of houses, apartments and

multi-story buildings is on-going. Large plots of land are being converted from agricultural

land to non-agricultural uses. This pattern of urban growth may undermine sustainability of

groundwater resources, which are the main source for the school’s water consumption. In

addition, there will be more students and teachers thanks to the continuous urban

development in the area, which can lead to increasing demands of water (KVDA and ADA,

2014).

The pilot project consists of two major components: ‘Decentralized Wastewater

Treatment System’ (DEWATS) and ‘Rainwater Harvesting System’. The decentralized

wastewater treatment system embraces construction of wastewater treatment facilities

including provisions for recycling and distribution of water after treatment for toilets and

gardening. The benefits of DEWATS are as follows:

Improvement of sanitation and adequate supply of water in community or household

level

Integration of the system as part of the landscape

Complimentary role in reduction of the load of wastewater in main grid

Decrease of environmental impact caused by wastewater

Adequate size for small- and medium-sized apartments, community housing, school

or office buildings and hospitals

Regarding the cost of construction, the new wastewater treatment system can be more

costly than a centralized wastewater treatment system for the Kathmandu Valley. For instance,

per liter cost of a centralized system is about US$ 0.76 whereas per liter cost of DEWATS at

the project site reaches around US$ 1.5, almost double. Nevertheless, the operating cost

would be much higher in a centralized system than DEWATS (KVDA and ADA, 2014)

(Figure 7) and the environmental returns much greater.

15

Figure 7. Decentralized Wastewater Treatment System in Sathya Sai Shiksha Sadan

Source: KVDA and ADA, 2014.

The rainwater harvesting facilities comprise the elements of rooftop harvesting and

groundwater recharge. Two rainwater collection tanks with a 25,000 liter capacity have been

installed on the top of the school’s dormitory and are connected to the school’s existing water

treatment system through pipes to distribute the store water.

With regard to groundwater recharge, four recharge ponds and four recharge wells

are constructed in the school. Both ponds and wells infiltrate collected rainwater to recharge

the ground and help keep the underground water table stable (See Figure 8 and 9). The

benefits of rainwater harvesting are listed as below (KVDA and ADA, 2014).

Simple technology and easy maintenance

Low cost of installation and operation of the system

Reduction of water bills

Prevention of groundwater depletion and ecosystem rehabilitation in the area

Reduction of flood (i.e. flash flood), soil erosion, and contamination of surface water

with pesticides and fertilizers from rainwater run-off

Non-drinking functions, i.e. flushing toilets, washing clothes, and watering gardens

Although there are several benefits in rainwater harvesting, some challenging issues

need to be considered. Most importantly, rainfall is hard to predict. Regarding this project

case, the system is only able to collect rainwater in the monsoon season between June and

September. The feasibility of the system would be tarnished if the area faced a serious

drought. It is necessary to consider auxiliary supply sources. For instance, the Bohol Island

State University, Tagbilaran City in the Philippines, installed a rainwater harvesting system

on its campus in June, 2015 with financial support of UNESCAP. The system is connected to

the small-scale water treatment facility which collects rainwater as well as groundwater from

a well on the premises. Water supply in the university is possible not only through rainwater

harvesting but also groundwater resources, which can help make a steady water supply for

the campus (Castil, 2015).

16

Figure 8. Rainwater Collection System in School Dormitory

Source: KVDA and ADA (2014).

Figure 9. Rainwater Recharge Ponds and Wells

Source: KVDA and ADA (2014).

Although there are several benefits in rainwater harvesting, some challenging issues

need to be considered. Most importantly, rainfall is hard to predict. Regarding this project

case, the system is only able to collect rainwater in the monsoon season between June and

September. The feasibility of the system would be tarnished if the area faced a serious

drought. It is necessary to consider auxiliary supply sources. For instance, the Bohol Island

State University, Tagbilaran City in the Philippines, installed a rainwater harvesting system

on its campus in June, 2015 with financial support of UNESCAP. The system is connected to

the small-scale water treatment facility which collects rainwater as well as groundwater from

a well on the premises. Water supply in the university is possible not only through rainwater

harvesting but also groundwater resources, which can help make a steady water supply for

the campus (Castil, 2015).

In addition, the initial cost is relatively high. The total cost of construction of the

rainwater harvesting system in this project was around US$ 15,000. The cost of a rainwater

harvest system varies dependent on the type of catchment, conveyance, storage tank materials

used. A typical cost ranges between US$ 0.17 to 0.37/m3 of water storage. This is rather low

17

compared with the countries in Africa (GDRC, 2015). Nevertheless, without substantial

financial support, it might be difficult to install such costly systems in other peri-urban areas

in the Kathmandu Valley in Nepal or other developing countries.

5 Policy Framework

5.1 Integrated Approach

As discussed, emerging cities in the region face a range of challenges. In order to

cope with such complex problems, an integrated approach is necessary. This approach

necessitates the shift from piecemeal to integrated, and from centralized single-purpose to

decentralized and multipurpose policies. Such policies and management systems require an

integration of water supply, rainwater harvesting, wastewater treatment, solid waste (sludge)

management, recycling and disaster prevention measures.

Cities need to consider linking urban water issues with other non-water issues in an

integrated fashion, i.e. transport and housing within the framework of green and resilient

urban plans. In addition to structural measures, the central and municipal governments have

to introduce non-structural measures, such as full-cost recovery through an adequate level of

water pricing (UNESCAP, 2014b; UNESCAP and KOICA, 2012).

The framework of an integrated approach to water management for green and

resilient urban development should reflect the nexus between water and energy. Water

resource efficiency in cities can be achieved through recognition of its connectivity with

energy use efficiency and consumption. One of the basic steps is to set targets for energy

efficiency with regard to water. For instance, local water operators in the French towns of

Orleans and Hyeres have been requested by local governments to enhance energy efficiency

and bonus or penalties would be levied depending upon performance. The primary indicator

for drinking water is the energy consumption (and emission in CO2 equivalent) per m3 of

water produced (Werner and Collins, 2012).

Generating energy requires more water than any other industrial processes. Urban

dwellers tend to consume more energy, i.e. electricity, natural gas, and oil compared to rural

residents indicating that water footprints in cities are larger than in rural areas. Typical values

for water consumption to produce fuel production are in the range between 0.5 and 1 litre of

water per litre of gasoline through refining crude oil or 1,100 litres of water per litre of

ethanol from biomass (Olsson, 2012).

It is imperative to connect water planning with land use planning in urban areas in

order to increase predictability in the development process. In March 2001, Frederick,

Maryland in the United States announced a suspension of new development and annexations

in water services faced with difficulty coping with the rapid pace of urban development. After

an acute water shortage in 2002, the municipal government passed the ordinance of effective

water allocation. Now developers that apply for a building permit should acquire a water

allocation permit and make a service contract with the city. This type of strict regulation will

continue until the construction of a new water treatment plant in Frederick is completed (EPA,

2006).

Table 1 explicitly elaborates a list of policy measures in achieving eco-efficient water

management for green and resilient urban development. The measures encompass the

18

practical approaches on relevant policies that have positive impacts on the improvement of

the overall urban water management. Attention is paid to an array of policy measures

touching upon political, institutional, and financial issues alongside the introduction of

democratic decision-making and public private partnership schemes. Green and resilient

urban development is also reflected in the policy suggestions that encapsulate major

implications from the good practices.

Table 1. Integrated Approach to Eco-Efficient Water Management for Green and Resilient

Urban Development Integrated

Policy

Approaches

Water Management Eco-Efficient Water Management for Urban

Development

Political

Willingness Political stability

Political willingness

Coordinating institution

Feedback system

Public awareness

Legal,

regulatory &

administrative

settings

Basic water law

Adequate legislations &

regulatory programs at the

urban, basin, and national levels

Cross-sectoral collaboration

River basin management

Eco-efficiency principle embedded in Basic Water

Law at the national level and relevant laws and

regulations at the city level

Financial incentives or levying penalties to companies

depending on how eco-efficient they are

Appropriate standards and conditions of eco-

efficiency in the water sector and other sectors in urban

development, i.e. consideration of the nexus between

water and energy

Coordinating mechanism (institutions, regulations,

programs) between ministries and city bureaus

River basin management and urban planning for

ecological efficiency

Financial &

economic

practices

Rational water tariffs, water

savings, full-cost recovery

Rational water tariffs with provision of safety nets for

the poor and the marginalized in slum areas (esp. the

informal urban sector)

Promotion of water saving technology for eco-

efficiency in urban buildings, i.e., households, schools,

and hospitals and green buildings for water reuse and

recycling, rooftop gardens, and resiliency against flood

Stakeholder

participation

Institutionalization of

stakeholder participation in

planning and policy-making

Principle of stakeholder participation embedded in

Basic Water Law and other laws and regulations at the

city level

Private sector

involvement Enhancement of service quality

Institutional incentives for private players and

improvement of service quality through private

investment, advanced technology and management

skills in urban areas

Adequate regulatory settings prepared prior to invitation

of private players to ensure universal access to water for

the poor and the marginalized in urban areas

Source: Modified based on UNESCAP (2014b).

5.2 Increase of Economic Efficiency

Economic efficiency for urban water management can be gained through various

ways. As non-structural methods, municipal governments can consider the adoption of sound

19

water tariff systems and the water budget approach as seen from the case of the US. The

examples of structural measures are the reduction of water losses through leakage and the

prioritization of retrofitting existing infrastructure rather than constructing new infrastructure.

The nexus between water and energy highlights the interconnectivity between water and non-

water issues in urban settings.

Appropriate water pricing is to guarantee financial health to water authorities,

increase water resource efficiency and encourage urban customers to consider conservation of

water resources. In numerous cases in Asia and the Pacific, volume charges are flat in cities

and it is not common to identify the cities that employ the system of increasing block tariffs

as seen in Chennai, Colombo, and Kathmandu in South Asia (Whittington, 2003).

This type of tariff is often called, ‘conservation pricing’, because the system

discourages customers from consuming more water resources. Conservation pricing in urban

areas can be effective in encouraging urbanites to play a pivotal role in saving water

resources and their own money. According to the US statistics, conservation pricing reduces

water demand by 5-8% or more (EPA, 2006) (See Figure 10).

Figure 10. Increasing Block Tariff Structure

Source: http://www.sswm.info (accessed 21 March, 2015)

There is an essential element to let the system work effectively in urban areas, which

is to install water meters in households and read the meters properly. The information on the

volume of water consumed by different water users should be well taken care of by urban

water utility bureaus, and then be shared with customers. This can be possible through the

Smart Water Grid policy as seen from the Korean case. Local communities’ engagement in

the tariff setting process is crucial in reflecting local needs, identifying the costs of providing

a good quality of water and sanitation services, and seeking the most feasible ways to recover

the costs (Cardone and Fonseca, 2003).

An innovative approach to conservation of water resources in urban areas needs

attention. Albuquerque, New Mexico created a resolution which supported development of a

regional ‘water budget’. Water budget includes the ideas of water revenue (supplies) and

expenditures (uses) and encourages local residents to take into serious consideration the need

to protect invaluable water resources. This approach can help the city to carefully plan future

water supply and consumption and eschew possible deficits (EPA, 2006).

20

As urbanization has accelerated in Asia and the Pacific, urban sprawl is a common

scene in many countries, particularly in transitional economies, i.e. China, India and Thailand.

Newly developed areas in these countries are located out of the traditional city centres, which

require a longer system than compact areas. The leakage rate can be higher in less dense

developments than that in compact developments (EPA, 2006).

One of the most common and effective ways for an increase of water resource

efficiency is to reduce the rate of water leakage. Distribution losses (5-50%) are much larger

than production losses (2-10%). Primary attention should be paid to the distribution losses,

which indicate the total of the real losses in the network and unbilled consumption (i.e. fire-

fighting) and apparent losses (i.e. meter inaccuracies and illegal consumption) (Jacobsen,

2014). Water systems leak both through pipes and at joints. There are two primary factors that

affect leakage are length and system pressure. Shorter systems leak less than longer systems.

Systems with higher pressures leak more than systems with lower pressures. Low-density

areas should employ higher pressures in systems in order to deliver water through longer

mains and may have higher demand of water for lawns (EPA, 2006).

More emphasis should be paid to existing infrastructure rather than constructing new

infrastructure which entails not only more capital investment but also more burden on the

environment. Public utility authorities in urban areas have to consider a pursuit of ‘fix-it-first’

policy, which can guarantee improvement of financial situation, conservation of water

resources, and lowering costs for their customers. Such policy would be more effective if it

entailed fees for system expansion and local efforts towards redeveloping existing

neighborhoods. Eventually, the fix-it-first policy can lead to higher bond ratings, lower

borrowing costs, and reduce overall costs for water delivery (EPA, 2006).

This is the reason why municipal governments should retrofit existing systems rather

than install new systems in newly development areas. In addition to water losses through

leakage, new developments can reduce the overall return on a community’s water

infrastructure investment. New infrastructure is constructed for new customers, and then

public authorities may deter improvement of existing systems. This eventually spawns higher

costs per customer than if the new customers joined the existing system (EPA, 2006).

5.3 Conservation for Ecological Efficiency

Ecological efficiency should be pursued so as to revitalize natural environments in

urban areas and provide practical benefits such as the improvement of air and water quality,

living conditions, water-related disaster prevention, and biodiversity. Restoring ecosystem

services and biodiversity is a fundamental platform to accelerate rehabilitation of urban

resilience and environmental sustainability with regard to water resources. In principle, more

room should be given to ecosystem services in urban areas in order to preserve endangered

species (flora and fauna) and ensuring livable environments for urbanites and other living

creatures. Cities should focus on preventing deterioration of surface and groundwater

resources, improving and restoring surface water bodies, and achieving reasonable chemical

and ecological status of surface and groundwater resources.

Regarding water pollution, cities have to decrease point and non-point source

pollution from wastewater and solid wastes from household, industrial, and commercial users

in urban areas. Groundwater resources should be recharged through environmentally friendly

pavements and building materials together with adequate institutional settings for keeping a

sustainable level of groundwater abstraction (Ministry of Land and Transport of the Republic

21

of Korea, 2015).

A fast track to increase ecological efficiency is to value ecosystem services in an

adequate manner, which requires a prerequisite, the establishment of proper institutional

settings. Municipal governments should take into account the adoption of the Payments for

Environmental Services (PES) system as a good reference to value environmental services for

conservation. As the first step, local authorities in the region should introduce small-scale

projects and adopt a ‘learning by doing’ process. A sufficient amount of information about

protection and restoration of ecosystem services, especially water environments, should be

given to the lay public. It is essential to identify beneficiaries from suppliers of ecosystem

services and ensure receipt of payments for services from main water users in urban areas, i.e.

households, industries, water and sewage utilities, and energy facilities. Flexibility is a key to

success, and continuous efforts are required to improve a PES scheme (Ministry of Land and

Transport of the Republic of Korea, 2015).

The city of Loja, Ecuador has made a municipal ordinance with regard to levying a

special consumption tax on water in order to mobilize the fund for conservation of water

resources. The collected tax amounts up to US$ 300,000 per annum and is used to finance

conservation initiatives, environmental awareness programs and reservoir management. The

tax is known as an environmental charge in household water bills. This PES is regarded as a

successful practice in terms of restoring ecosystem services and securing financial sources for

green and resilient urban development (Ministry of Land and Transport of the Republic of

Korea, 2015).

To reduce the amount of water use in urban areas, natural landscaping in residential

and commercial buildings should be emphasized. Large grass lawns + green spaces represent

a basic feature of traditional landscaping for both homes and businesses, and in recent few

decades, a rise of middle class in many urban areas in the Asia-Pacific region has led to a fast

increase of grass lawn areas, including China and India. Highly dense Asian cities seem to be

far less dense in the future, which implies far-reaching impacts on the amount of land cities

occupy (Engelke, 2012).

A sustainable landscape embraces a basic element of the adoption of native plants

which often require little additional water beyond the amount of water the local climates

provide. The idea of ‘xeriscaping’ is worth being referred to, which seeks to conserve water

through landscaping in which plants are adequate to local climates and attention is paid to

avoiding waste of water due to evaporation and runoff (EPA, 2006).

In order to support a wide adoption of xeriscaping and natural landscaping, it is

imperative to provide following actions, such as collaboration with homeowners’ associations,

local landscapers, and organizations to educate citizens. Local authorities should be ready to

establish a system of providing financial incentives, i.e. property tax breaks for commercial

building owners and homeowners. In addition, it is crucial to set up natural landscaping

demonstration projects (a pilot project) on public spaces and parks. More importantly, a

provision of adequate legal framework is essential, such as municipal ordinances for

encouraging the adoption of sustainable landscaping (EPA, 2006).

22

5.4 Enhancement of Quality of Life

Universal access to clean drinking water and adequate sanitation services needs to be

guaranteed in cities in Asia and the Pacific. In order to do that, municipal governments have

to establish proper institutional settings together with relevant plans and policies, especially

for the poor and the marginalized. This issue is closely associated with the improvement of

human health, livelihoods, gender equality and economic development.

Considering various policy options for enhancement of quality of life, priority should

be given to the policies on how to empower the lay public, especially women. An urgent task

is to provide a specific mechanism to promote stakeholder participation in urban water

management. Special education and training programs have to be introduced for capacity

building aimed at both women and men for gender balance.

Gender mainstreaming is necessary in order to improve water and sanitation services

in urban areas. The concept encapsulates the process of evaluating the ramifications for

women and men of any planned action, including legislation, policies or programs in all areas

and at all levels, including the urban water sector. This is also a strategy for reflecting the

concerns and experiences of women and men when designing, implementing, monitoring and

assessing policies and programs in all political, economic, and social spheres. Ultimately,

there should not be any inequity. The capacity of both men and women should be reflected in

policy to support meeting their water sector objectives (WSP, 2010).

The Slum Sanitation Programme in India led approximately 400,000 people to have

access to sustainable urban sanitation facilities within Mumbai, which was partly funded by

the World Bank as part of the Mumbai Sewage Disposal Project. The partnerships were

established between the municipal government, NGOs, the private sector, and Community-

Based Organizations (CBOs) (mainly women’s groups) and played an instrumental role in

securing public pay-and-use facilities (WSP, 2010).

Small-scale solutions such as rainwater harvesting, rooftop gardening and water

reuse and recycling should be promoted in the region. These options aim to secure auxiliary

water supply sources against water scarcity situations such as heavy droughts and channel

emergency water resources in urban areas, such as water supply system damage due to

typhoons and floods.

Confronted with the adverse impacts of climate change, municipalities should pay

attention to building urban resiliency in order to cope with water-related disasters. This

reflects an approach to improving quality of life for urbanites from a water security point of

view, which highlights the protection of people from water-related disasters. Together with

the central or federal governments, municipal governments should establish specific policies

and plans for enhancing the capacity of urban dwellers to prepare floods and respond to

disaster and recovery in accordance with the Sendai Framework for Disaster Risk Reduction

(2015-2030).

Water-related disaster policies and plans should be mainstreamed, which calls for the

incorporation of the policies and plans into urban development plans. Financial mechanisms

should be adequately considered to support relevant policies, plans, and programs at times of

disasters. More emphasis should be placed to green infrastructure, i.e. terraces, planning

native species along urban waterways and reforestation of protected areas in urban and peri-

urban areas.

23

5.5 Enabling Environments

Enabling environments are the solid foundation in achieving sustainable development

in urban areas with regard to water issues. Following guidelines from the central government,

municipal governments have to develop relevant policies, plans and legislative tools in order

to promote water resource efficiency for green and resilient urban development. Water

resources planning and management systems should be incorporated into a river basin plan,

which oversees a hydrological cycle in the river basin and strives to balance different

environmental elements from a comprehensive perspective of ecosystem rehabilitation and

conservation.

As essential part, a good set of clear legal frameworks for the water sector should be

introduced together with consideration of urban water issues. In particular, water laws and

regulations should reflect special features in urban water management for increasing

efficiency in water use, i.e. water conservation facilities such as rainwater harvesting, water

reuse and recycle, rooftop gardens, and introduction of Smart Water Grid (SWG).

In order to establish and implement the policies above, municipal governments in the

region should mobilize funds to ensure financial sustainability. City mayors should allocate a

sufficient amount of budget for promoting water resource efficiency and green and resilient

urban development, which also needs to be buttressed by the central or federal government.

Water tariffs or taxes should be adequately set and levied to water users based on the sound

water tariff structure that guarantees payback to all costs involved in water supply and

sanitation facilities and encourages the change of consumption behaviors for saving more

water. As discussed above, the system of Payment for Environmental Services (PES) should

be introduced, and private sector participation in urban water management should be

considered in order to introduce cutting-edge technologies, management know-how, and

additional funding from the private sector.

Together with an influx of investment in infrastructure, cities in the region provide

institutional settings to introduce innovative and novel technologies and educate and train

government officials and experts for appreciating the policy shift for enhancement of water

resource efficiency. Public campaigns should be arranged to raise awareness of the new way

of living among urban residents alongside the establishment of information and knowledge

sharing platform (Werner and Collins, 2012).

Faced with climate change, decision makers have to take into serious consideration

more investment in reducing vulnerability to floods and droughts through promotion of green

buildings and infrastructure. In addition, a myriad of policy measures and legal settings is

imperative in preparing cities for extreme water events, i.e. flash flood and concentrated

rainfall in a short period of time and advocating water reuse and recycling (Werner and

Collins, 2012).

Stakeholder participation is one of the key drivers to making green and resilient

urban development possible. Citizen engagement is useful in identifying opportunities to

decrease water demand or make existent systems more efficient. In addition, this system

ensures stakeholder involvement in important decision-making, thereby encouraging citizens

to decide their own future (EPA, 2006).

Data collection and sharing between the countries in the region is a prerequisite to

achieving green and resilient urban development with reference to water management. At the

moment, there are no existing Asia-wide technical requirements, and such work is only dealt

with at the individual utility level depending on the countries.

24

Feasibility of cooperation at the regional level has so far been low, and therefore,

cities should take an initiative in order to achieve Asia-wide universal technical standards or

requirements with which municipal water authorities can make their utilities greener and

more resilient together with a higher level of water resource efficiency. As seen from the case

of the European Innovation Partnership on Water (EIP Water), this type of collective efforts

will bring about acceleration of developments in water innovation, lead to continuous socio-

economic growth and creation of jobs, and scale up water innovation by market and society.

The trend will eventually help enhance water resource efficiency in cities across the region

(Jacobsen, 2014).

6 Conclusions

This research has evaluated the opportunities and challenges in achieving resource

efficiency for green and resilient urban development in Asia and the Pacific with special

reference to water. Universal access to clean water and sanitation services in urban areas is

urgent in the region, which is included as one of the goals in the 2030 Agenda for Sustainable

Development. In addition, numerous challenges remain in the water sector, due to rapid

urbanization in the region. The examples are deteriorating water quality, inefficient urban

water infrastructure, i.e. non-revenue water, more water demands due to urban sprawl and

more middle class people, low ecological efficiency, and water related disasters in relation to

climate change.

In order to tackle an array of serious challenges ahead, the study has shed light on

how to improve water resource efficiency for green and resilient urban development. The

research employs the approaches of eco-efficiency and resource efficiency coupled with

discussions of green and resilient urban development in order to achieve sustainable water

resources management in Asian cities. Water resource efficiency is emphasized in the course

of water distribution, consumption, pollution generation and service provision in connection

with electricity supply.

Green and resilient urban development can be achieved through a variety of

environmentally friendly approaches, i.e. eco-city, smart growth, urban resiliency, and green

buildings. The approach of eco-efficient water infrastructure is useful in promoting water

resource efficiency for green and resilient urban development.

The Korean case has highlighted the Smart Water Grid (SWG) project, which shows

an novel approach to resolving the complexity of water challenges through inter-connectivity

and advanced ICT. Although it is still early to assess the impacts of SWG, this new attempt

will be effective in optimizing existent infrastructure and using them more effectively under

the idea of eco-efficiency.

The 3R (Reduce, Reuse, and Recycle) Principles have been discussed in the case of

Japan which delivers the message for reducing resource consumption and disposal. An

emphasis has been placed on not only reducing solid wastes in urban areas but also achieving

resource efficiency, which will bring about positive impacts on the environment, including

the urban water sector. The case of Nepal has shown a good example of bundling a series of

green and resilient building designs for lower income population, such as decentralized

wastewater treatment systems and rainwater harvesting in the Kathmandu Valley. Nepal’s

experience can be emulated by many other developing countries in the region.

As policy framework, the report recommends five policy measures. The first policy

25

measure is an integrated approach towards more multiple, decentralized policies with

reference to the nexus between water, energy and land planning. The second measure is to

increase economic efficiency through diverse demand management tools, such as adequate

water tariffs and the Payment for Environmental Services (PES). The conservation for

ecological efficiency is suggested as the third measure with an emphasis of the rehabilitation

and conservation of ecosystem services in urban areas. The enhancement of quality of life is

emphasized as the fourth measure, which stresses the significance of stakeholder participation

with empowerment of women, small-scale water supply solutions and an increase of

community capacity for water related disasters. Last, the study recommends an establishment

of enabling environments such as proper institutional settings, organizations, and financing

mechanisms.

Green and resilient urban development should be prioritized together with increased

water resource efficiency in Asia and the Pacific. In order to do that, the countries in the

region should take into serious account the adoption of the framework of eco-efficiency and

water resource efficiency. At the same time, cities in the region take into consideration the

adoption of green and resilient urban development. Institutional rearrangements will be

necessary for implementing relevant policies that help decrease the level of water resource

and energy consumption in urban living and invest in water infrastructure that reduce the risk

to being exposed to external resource and climate-related impacts. The decision making

process for such policies should advocate inclusive and participatory forms of governance,

and this will result in enhancing the quality of life of urban population into the future

(Engelke, 2012).

26

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