Transcript Damage costs from Inadequate Waste Management

The Cost of Inaction in the Middle
East and North Africa (MNA)
Countries
by
Sherif Arif
Regional Environmental Advisor
Middle East and North Africa Region (MNA)
The World Bank
Presented at the 2nd International Expert Meeting
on Sustainable Consumption and Production
Costa Rica, San Jose 5 September, 2005
MNA Environmental Strategic Tools
To increase decision-makers’ awareness of the need
to conduct economic assessments to support policy
formulation, particularly as they relate to strategic
environmental decisions linked to environmental
inter-sectoral planning, and sectoral planning
(energy , water , waste ICZM policies)
Assessment is at two levels:
MACRO LEVEL THROUGH
• COST OF INACTION known as the
ENVIRONMENTAL DEGRADATION (COED)
Cost of
SECTOR LEVEL THROUGH:
• THE ASSESSMENT OF IMPACTS OF ENVIRONMENTAL
MEASURES IN THE ENERGY , WATER and WASTE
SECTORS
Why Calculating the Cost of
Inactions
1.
2.
3.
4.
5.
6.
It allows comparison between various environmental
categories (air, water, land, forest, waste etc.)
It represents an indicator of the present resource's assets
It enables comparison with other economic indicators
It enables comparison between the “benefits” and the
“costs” of investing in natural resource management
It raises awareness about environmental degradation
beyond the environment audience
It gives “environment ministers” a tool to discuss the
importance of environmental protection using the same
language as ministers of finance.
Mediterranean Environmental Technical
Assistance Program
(METAP)
Established in 1990
Beneficiaries: All Southern and Eastern
Mediterranean Countries
Supported by: EC, EIB, UNDP, WB,
Switzerland & Finland
Objective: To bring together the
Mediterranean countries to cope with and
reduce the effects of environmental
degradation.
COST ASSESSMENT OF ENVIRONMENTAL
DEGRADATION
Objective: Estimate the Damage Costs resulting from
environmental degradation.
Damage costs include:
 Impact on human health and on the
quality of life (morbidity, mortality, loss in
recreational value, etc.)
 Impact on natural resources (e.g. impact
on ecosystem, deforestation)
 Estimates reflect order of magnitude and
therefore represent an indication of actual
costs.
Financed through the Mediterranean Environmental
Technical Assistance Program (METAP) by the Swiss
Government
Conducted by a team of World Bank staff and local
consultants under the task leadership of Ms Maria
Sarraf
The Cost of Environmental Degradation
in the MNA countries
Environmental Category: Percentage of GDP
6
Percentage of GDP
Water
4.8%
5
Soil
Air
4
Coastal Zone
Waste
3.41%
3.49%
3.67% 3.7%
2.74%
3
2.1%
2
1
0
Tunisia
Jordan
Lebanon
Syria
Algeria
Morocco
Egypt
Damage costs from Air Pollution
Annual damage costs from Air pollution as % GDP
Outdoor
Indoor
2.00%
1.50%
1.00%
0.50%
0.00%
Egypt
Syria
Morocco
Lebanon
Algeria
Tunisia
Impact on the poor
Egypt: Index of Per Capita Cost of
Environmental Degradation –
Poor vs Non-Poor.
120
Poor
100
NonPoor
80
60
40
20
0
Urban
Air
Indoor
Air
Water
Soil
Mun.
Waste
Coastal
Damage Costs in the Energy Sector
in Iran and Egypt
Damage costs were based on Western
European estimates supplemented where
possible with local studies
The assessment of damage from air pollution
was based on ExternE, a methodology used by
the EU member states applied for power
generation and transport, Results have been
used to support EU legislation concerning:
incineration,
the Large Combustion Plant Directive,
the EU strategy to combat acidification,
the National Air Quality Strategies
Damage Costs in Iran’s Energy Sector is 2.3
% of GDP
10^12 Rls (US$1 bn = 8x10^12 Rls)
The main problem in Iran is the growth of
pollution from private gasoline vehicles
180
160
140
120
CO
100
NOx
80
SO2
60
PM10
40
20
0
2001
2004
2009
2014
2019
Iran :Sectoral Measures and Price Reform
Combined
The combined effect reduces damage substantially below the 2004
value by 2009 in all three cases.
Even by 2019 the damage is less than in 2004.
Only the combination of measures and price reform will achieve a
cleaner environment in 2019 than now.
Price reform by 2009 plus sectoral measures provides the cleanest
environment over the period.
100
12
Damage cost (10 Rials)
90
80
70
60
CO
50
NOx
40
SO2
30
PM10
20
10
0
2004
No
-09
-14
-19
2009
No
-09
-14
-19
2014
No
-09
-14
-19
2019
Egypt: Health Damage Costs due to
Transport, Industry and Burning of
Wastes
Local Damage Costs
(LE billion/year)
10
8
CO
6
SO2
NOx
4
PM 10
2
0
1999/00
2010/11
Egypt: Damage Costs 2010/2011
with
Price Reform & Sector Measures
Compared with Business as Usual
10000
L.E. Million
mn LE
8000
6000
4000
2000
0
Actual
(1999/2000)
BAU
Price reform
Sector
measures
Combined
EGYPT: DAMAGE COSTS RELATED TO WATER QUALITY
Damage Costs of Components Under Actions as a % of National GDP
Water Treatment
3.50%
Fisheries
% of GDP
3.00%
Agriculture
2.50%
Health
2.00%
1.50%
1.00%
0.50%
0.00%
2003
2014 No
Action
2014
Central
Action
2014
Central +
Decentral
Action
2014 Full
Coverage
2014
Hygiene
Promotion
Comparing Inaction with Action:
Action Cost vs. Forgone Benefits
(health + crops + fisheries)
10
9
Total Costs
LE Billion/year
8
7
6
Forgone Benefits
(damage costs)
5
Cost of added
treatment/control
4
3
2
1
0
BAU
Central measures
Central + communitydriven measures
Outcome of the Cost of Environmental
Degradation (COED)
Within the World Bank, COED has been adopted in
Asia ( China)
Africa ( Ghana)
Latin America ( Columbia)
Within the MEDA countries, COED was recognized in
the “Athens Declaration of 2002”as one of the
mainstreaming tools for environmental integration
In the MNA region, COED is used by other donors
and national agencies in Algeria, Morocco and Egypt
In the Gulf countries, COED is used by ESCWA for
economic evaluation
Outcome of COED in Algeria
The Government decided to provide in
2001 an additional US$ 450 million for
environment-related investments
Methodology used in other sectors
( cement and coastal zone management)
OUTCOME of COED in the Energy Sector in
Iran
Damage costs assessment assisted in
the policy formulation in the
forthcoming fourth year development
plan as follows:
Increase of the energy fuels ( gasoline,
diesel, and electricity should reach their real
market values by 2009;
As of March 21 2006, The gasoline price
above the subsidized quota (10 cents per
liter) will be 2200 Rials/liter ( 25.6 cents
per liter). It is expected that the price of
gasoline should reach its market value in
2009.
Damage costs from Inadequate Waste
Management
Annual damage costs from inadequate waste management as % GDP
0.5%
0.3%
0.0%
Morocco
Egypt
Jordan
Tunisia
Algeria
Syria
Lebanon
Damage costs from Inadequate Waste
Management
Annual damage costs from inadequate Waste Management in million USD
200
150
100
50
0
Egypt
Morocco
Algeria
Tunisia
Jordan
Syria
Lebanon
Solid Waste Sector in the MNA Region: Key Numbers …
The METAP Mashreq and Maghreb countries
• Host about 170 million people, of which more than 50% live in urban
areas.
• Produces about 40 million tonnes of municipal waste per year (254
Kg/cap/y)
• The projected urbanisation and economic growth in the region during
the coming years is expected to result in a waste tonnage increase of 44
% by 2010, equivalent to 55 million tonnes per year.
• In all countries, most of the cities are characterised by high population
densities and rapid growth and suffer from several forms of urban
pollution.
• Across the region, countries currently spend between US$ 325 – 400
million annually to manage municipal solid waste.
Solid Waste Sector in the Region: Common MSWM Issues in the MNA Region
• Gaps in SWM policies and strategic planning
• Institutional and legal barriers
• Limited involvement of stakeholders and low environmental awareness
• Financial constraints and lack of appropriate municipal finance
systems
• Deficiencies of technical and management capacity at the local and
municipal level
• Inadequate cost accounting, financing and cost recovery
• Constraints for private sector involvement in the SWM market and its
performance
RSWMP OBJECTIVES
Launched:
in January 2003
Ending:
in March 2006
Beneficiary:
and Tunisia
Algeria, Egypt, Jordan, Lebanon, Morocco, Syria, Palestinian Authority
Supported by :
European Commission with a grant to METAP for of EURO 5.0 million
Main Objective: Promote the adoption of sustainable integrated Solid Waste
Management in the Mediterranean Eastern & Southern Countries
Specific Objectives:
• Assist target countries in designing, developing & applying main elements of ISWM;
• Promote regional exchanges of information & experience within the region and capacity
building in the SWM field;
• Lay down the foundation and build up the necessary environment and conditions for
international and regional financial institutions to invest in MSWM projects in the region
Concept of Guidance documents
of Terms
Concept ofGlossary
Guidance
documents
Introduction &
User’s Guide
Decision Maker’s
Support Document
Why is SWM important ?
Policy
Legal &
Institutional
Explanatory
Documents
Finance &
Cost Recovery
Tools
Private sector
Participation
Case
Studies
Public Awareness
& Community
Participation
Examples
Training
Manuals
Guidelines
Training
Manuals
Development of Regional and National Expertise
Antenna









Regional
Centre
of Expertise


Cluster of Experts





 





SWM professionals








RSWMP Progress: Regional Information exchange and dissemination
• Design and development of a Regional Electronic Network (www.metap-solidwaste.org)
• Co organisation with UNDP/EC USWM Project of the first Policy Dialogue Workshop on ISWM in Cairo in July
2003 (70 participants from national and municipal institutions, donors, international and local experts, and the
eight NCs of the RSWMP).
• Preparation & issue of a set of dissemination tools (CD ROMs; 2 biannual Newsletters; project brochure;
technical brochures, etc.)
• Visits of regional experts and exchange of experiences among the region (Tunisia & Jordan).
• Establishment of Electronic database on key stakeholders, donors’ initiatives, applied technologies, regional
and local expertise, etc.
• Organisation of the Regional NGOs Workshop
•ORGANIZATION OF REGIONAL FORUM ON SOLID WASTE MANAGEMENT IN
CASABLANCA, MOROCCO IN NOVEMBER 14-16, 2005
Understanding the impact of carbon finance on
project financing and financial sustainability
Construction Capital for underlying climate friendly project
World Bank Emissions Reductions Purchase Agreement is bankable
and additional revenue commitment helps bring projects to financial closure
Cash
in
= annual payments under carbon purchase agreement
= annual payments under power purchase or other
source of revenues to underlying project
Carbon Revenues for
10-21 years
Debt
Equity
Operation
Construction
Yrs
Cash
out
0
1
2
3
4
5
6
7 8 …………………………………….15-20
Carbon sales revenues are commonly
in the range from 10-50% of total
revenues for power and waste
management projects
Carbon Economics
Increases in Project Rates of Return as a result of
additional revenues from sales of Emissions
Reductions (“Carbon”) at $4/tCO2e
Technology
DIRR
financial
Hydro, Wind,
Geothermal
0.5-2.5%
Crop/Forest Residues
3-7%
Municipal Solid Waste
5-15+%
Combining Lending with Carbon
Emissions Revenues
Tunisia
Integrated Solid Waste Management
• IBRD Loan: US$ 22.2 million
• Carbon Emissions Revenues: US$ 29.4 million
Egypt
Egypt-Pollution Abatement Program
• IBRD Loan: US$ 20.0 million
• Carbon Emissions Revenues: US$ 10 million ( est)
THANK YOU VERY MUCH FOR
YOUR ATTENTION