WATER GLOBAL PRACTICE Water in Circular Economy and Resilience (WICER) The Case of Águas de Portugal Implementing Circular Economy and Resilience Principles in the Long-Term Strategy of Urban Utilities This case study is part of a series prepared by the World Bank’s Water Global Practice to highlight existing experiences in the water sector. The purpose of the series is to showcase one or more of the elements that can contribute toward a Water in Circular Economy and Resilience (WICER) system. This case focuses on the experience of Portugal. Context and infrastructure, modernizing services, and advanc- ing corporate management and regulation. These Portugal is a “downstream country.” Almost 70 percent improvements have brought the country widespread of its annual water resources are generated in Spain, its and well-deserved international ­ recognition. Its neighbor to the north and east. Its temperate continen- ­ political commitment and hard work supported tal climate, with variable annual and seasonal precipi- through European Union (EU) funding, enabled the tation, is subject to “water scarcity events,” especially country to improve water and sanitation coverage, in the south. As a result, and to foster efficient prac- quality, and wastewater treatment. From 1993 to 2018, tices, Portugal has adopted integrated management the supply of safe drinking water rose from 50 percent practices for its water resources and environmental ­ ercent, and access to wastewater management to 99 p policies that acknowledge the entire water cycle. ­ercent to 86 percent, services increased from 28 p The water services sector has made remarkable progress ­ reaching 98 percent in urban areas. Portugal is in com- over the past twenty-five years, improving governance water standards. pliance with European drinking-­ 1 The year 1993 marked a milestone in the Portuguese the 2030 Agenda on Sustainable Development. Central water sector with the creation of Águas de Portugal to the roadmap is the Circular Economy Action Plan (AdP) and the establishment of a new manage- for a Cleaner and More Competitive Europe, adopted ment model based on integrated solutions at a in March 2020. To achieve the goals set out in the supra-municipal scale (that is, across regional utili- European Green Deal, at least EUR 1 trillion is expected ties). AdP is a state-owned holding company whose to be mobilized. Over the next decade, Portugal will mission is designing, building, and managing water have nearly EUR 68 billion from the EU budget to help supply and wastewater systems. Thirteen regional implement its strategy for 2030, particularly related utilities now operate under the AdP Group in Portugal, to climate transition and sustainability of resources. most of them in a public-public partnership model Additional funding will be available through the with the municipalities. AdP holds a majority of the national budget in addition to bank loans, private utility’s equity, while the remaining shares are held by investment, and research and innovation programs participating municipalities. Presently, these regional such as Horizon Europe. utilities provide water supply and wastewater services At the national level, the government of Portugal to around 80 percent of the population. AdP Group is adopted a national action plan for circular economy in also present in international markets through its sub- 2017. It is intended for governmental agencies, the pri- sidiary, AdP International. vate sector, and society large, the action plan focuses After twenty-five years of success—increasing service on tools to accelerate, first, the transition toward a cir- levels and environmental protection under a framework cular economy and, second, the mobilization of stake- of economic and social sustainability—AdP recognized holders. Using a flexible approach, the plan centers the need for a paradigm shift to meet new challenges on seven macro actions: (i) design, repair and reuse; to the water sector. Recently, it defined a new strategic (ii)  incentivizing a circular market; (iii) educating framework for 2020–22 in support of its vision to be one for a circular economy; (iv) eating without wasting; of the most efficient and sustainable operators in water (v)  giving waste a “new life”; (vi) regenerating water management worldwide, with a focus on excellence in and nutrients; and (vii) innovating for a circular econ- customer service, innovation, resilience, carbon and omy. These seven actions are reinforced by sector-level energy neutrality, and circular economy. This case study actions (for example, construction and procurement) aims to showcase how circular economy and resilience and actions taken at regional and local levels (for exam- principles can be implemented in the long-term strate- ple, circular cities and industrial symbiosis). gies adopted by urban water utilities. The action plan defines the financing framework and highlights the main economic opportunities arising Policy, Institutional, and Regulatory from the analysis of national and European initia- Environment tives, programs, and instruments. Some of this fund- At the global level, the 2030 Agenda for Sustainable ing will be available to AdP. For example, water-reuse Development (including the seventeen Sustainable initiatives will be cofinanced by the European Union Development Goals) defines the priorities and aspira- and the Environmental Fund  of Portugal’s Ministry tions of global sustainable development for 2030, of of Environment and Climate Action. Moreover, AdP which water is a cross-cutting element. also supports  policy making to accelerate circular economy in Portugal. At the European level, the European Green Deal road- map released in December 2019 is a key component of In addition to its circular economy action plan, the the European Commission’s strategy for implementing country has adopted legislation on water reuse, energy 2 Water in Circular Economy and Resilience (WICER) efficiency, and waste, combining these with regula- As a public holding, the AdP Group both partici- tions on efficiency. These steps induced utilities to pates in the design and implements relevant public adapt their management models to reflect circular policies. It has focused on creating a “challenger” economy principles. Decree 119/2019, which estab- culture to help the Group and its regulated utilities lished the legal framework for water reuse, also clar- focus on meeting present and future challenges. It ified rules for producers and final users of treated is building several triggers into this new ecosystem. wastewater. The Portuguese government is aiming for For instance, AdP Group attracted skilled profession- a reuse rate of 20 percent by 2030 for the fifty largest als from the market and invested in human capital. wastewater treatment plants in the country. Moreover, AdP Group, through its subsidiary EPAL (Empresa Portuguese law has been modified to include waste- Publica das Aguas Livres), has developed the Water water reuse as a principal activity in water concession Academy, which facilitates the valorization of talent contracts across municipalities. In terms of energy effi- within AdP talent and among water professionals ciency, the combination of high energy operating costs from other utilities, taking advantage of in-house at water utilities with new regulations for obligatory competencies and promoting partnerships with rep- energy audits at certain facilities and for the valoriza- utable technical and business schools. Top manage- tion of energy generated onsite have fostered energy ment has also incentivized innovation as a critical efficiency and energy production initiatives in the element in improving the quality, efficiency, and water ­ sector. The costs of producing sludge from sew- resilience of water services. age have spiked over the past few years. These higher In summary, to shift its management models toward costs have affected not only service tariffs but also reg- a circular and resilient economy and build on sector ulations on the waste hierarchy. A new strategy aiming regulations focused on efficiency, AdP took advantage to minimize waste production and landfill deposits, of Portugal’s political and social momentum, adopted and new regulations arising from the first two circu- a circular economy action plan, and responded con- lar economy action plans on waste-based fertilizers structively to new legislation on water reuse, energy (such as wastewater biosolids) promote projects to efficiency, and waste (see figure 1). revalorize and reuse sludge. The water sector regulation model is based on key per- formance indicators of quality and efficiency, which Solution: The Development of the Strategic are reflected in the management performance indica- Framework tors of the utility’s board. Performance targets are set The AdP  Group addressed the social challenges for the quality of the service, such as efficiency and described above by developing a strategic framework affordability. Under their thirty-year concession con- centered on circularity and the efficient use of tracts, AdP Group utilities must balance the sustain- resources, using the methodology illustrated in ability of tariffs with the costs accepted by the national figure 2. An open and inclusive internal dialogue regulator (Entidade Reguladora dos Serviços de Águas engaged AdP’s entire staff of 3,300 and generated e Resíduos) and its criteria. In this context, the regu- nearly five hundred creative and innovative lated utilities are encouraged to implement innovative solutions. All members of the staff participated in changes and seek continuous efficiency improve- the dialogue, demonstrating high involvement and ments. The external pressure from customers and cit- a clear perception that the organization was taking izens also challenges the utilities to deliver ever more ­ urpose. The utility a robust path toward a common p sustainable solutions. underwent a thorough diagnosis to set the baseline Water in Circular Economy and Resilience (WICER) 3 FIGURE 1. Key Triggers Pushing Águas de Portugal Toward Circular Economy and Resilience Principles Key triggers LEGISLATION BE A CHALLENGER Water reuse Innovation is part of Energy efficiency Adp’s DNA and is key for Waste talent management REGULATION ENVIRONMENTAL AWARENESS Regulation model based on efficient Citizens and enterprises service delivery value increasingly more sustainable solutions PUBLIC POLICIES TARIFF PRESSURES Adp responsibility, as a Sustainability of traiffs public enterprise, to lead (30-year concession the implementation of contracts) and pressure the environment from the regulator policy agenda leads to continuous improvement Source: Águas de Portugal. FIGURE 2. Steps in Developing the Strategic Framework INTERNAL AND EXTERNAL DECISIONS ENVIRONMENT IDENTIFICATION OF ASESSMENT THE MAIN PRIORITY SETTING OPERATIONALIZATION ORGANIZATIONAL MANDATES Identify principal strengths, weaknesses, Define of strategic Translate priorities Pinpoint principal opportunities, and themes and respective into strategic pillars Convert of the regulatory and threats impacts in the water strategic areas into operational obstacles sector and the AdP operational objectives Group Source: Águas de Portugal. 4 Water in Circular Economy and Resilience (WICER) FIGURE 3. Águas de Portugal Strategic Framework HUMAN CAPITAL VALORIZATION - "NÓS AdP" KNOWLEDGE R I - ORAGANIZATIO A N CU PILL LTU RE ORGANIZATION COMMUNITY AND OPERATION SYMBIOSIS STRUCTURAL ECONOMIC EFFICIENCY SUSTAINABILITY FICIENCY SERVICE QUALITY L EF CIRCULAR ECONOMY OCIA PI -S LLA II RI AR I LL - S I OC P IA OPERATIONAL L INNOVATION 360° UT EFFICIENCY IL IT Y INFRASTRUCTURAL BUSINESS AND RESILIENCE INTERNATIONAL COOPERATION Source: Águas de Portugal. (defining “where we are”) and to allow improvements challenge, a set of defined actions. These twelve stra- to be tracked. tegic challenges will mark the AdP Group’s agenda for the coming years. The strategic framework was built on three strate- gic pillars: group culture (people and organization); The importance of circular economy and resilience service excellence (customers and the municipality); principles was emphasized as the framework was and social utility (environment and society) (figure developed. Both principles are now enshrined in the 3). Each pillar has four strategic challenges and, each framework. Water in Circular Economy and Resilience (WICER) 5 The Creation of AdP VALOR twenty-two wastewater treatment plants to adapting ­ In developing the framework, the holding company improve or add processes to treat and dry sludge. The realized that most water utilities focus on day-to-day initiative will be financed out of AdP’s own budget, activities and short-term challenges. For that reason, supplemented by European funds. AdP adjusted its governance model by creating AdP The plan also envisions the reuse of biosolids VALOR (“value”) to drive the change process and ensure produced, in addition to the recovery and sale of ­ accountability. This new company-within-a-company products of wastewater. In this case, the other by-­ will catalyze and accelerate the paradigm shift within regional utilities in the AdP Group are responsible for the Group toward sustainable services. investments in effluent-polishing treatments, while Toward this end, AdP VALOR will engage with AdP AdP  VALOR will identify and encourage different Group companies and related sectors, focusing on agri- business models for the biosolids, from agricultural culture, industry, energy, and tourism. It aims to boost uses of different grades to their incorporation into innovation initiatives and collaboration inside and industrial or construction products (such as bricks). outside AdP Group, supporting utilities with special- At this time, while investments are being made, AdP ized resources to improve operational efficiency and to VALOR is establishing new partnerships with farm- digitalize processes. ers, academia, and industries to diversify biosolids destinations. Once the businesses are developed, the AdP VALOR will also lead the transition to circular costs of sludge management will decline, putting the economy models and the development of innovative regional utilities on a more sustainable footing. business models for valorizing resources from waste- water (such as biosolids, energy and water resue). Other benefits include lower transport costs—which It will also lead the digital transformation and other in turn reduce CO2 emissions—and more renewable innovations of the company and its businesses) and energy production in the form of biogas generated by foster energy neutrality. This effort will be supported the sludge-treatment process. Farmers will also be able by AdP’s engineering business operations and its water to use biosolids, a low-cost and sustainable fertilizer. and wastewater services. Portugal enjoys ample sun, so solar-based solutions will be used to dry the sludge. Circular Economy Action Plan for Water Reuse Circular economy is a strategic challenge in the AdP framework. Described below are three key areas of the Portugal suffers from water shortages, particularly in circular economy challenge: sludge, water reuse, and the south, where agriculture production is important. energy neutrality. Yet only 1.2 percent of treated wastewater is reused, owing to low prices for raw water, lack of regulation, Sludge Strategic Plan and poor matching of supply and demand. The vision is to reduce the amount of sludge pro- In response to Decree 119/2019, AdP prepared a water duced by 50 percent (that is, from 480,000 to 240,000 reuse action plan, setting an overall target of 15 percent tonnes per year) and improve the quality and safety water reuse by 2030, that is, 70 million cubic meters a of sludge by 2023 to enable its reuse. The annual year. The action plan aims to increase reuse by finding costs of sludge management are expected to fall by the most appropriate end users for treated wastewater, around 45 percent, representing savings of EUR 7 mil- focusing on a fit-for-purpose approach. This approach lion  each year. The total investment for the plan is seeks to promote innovation, knowledge, and commit- estimated at EUR 120  million, including building or ment among end users by tailoring treatment to the 6 Water in Circular Economy and Resilience (WICER) FIGURE 4. Photo of the Beirolas Wastewater Treatment Plant, Located in Lisbon. The Plant is Integrated in the Urban Landscape, and it Produces Treated Wastewater Fit to Irrigate Green Spaces in the City. Source: Águas de Portugal. intended end use, employing the most efficient and Energy Neutrality by 2030: The Zero Program cost-effective methods. AdP VALOR will be a facilitator The AdP Group is the largest public consumer of elec- in this process, identifying and creating new partner- tricity in Portugal. Its grid consumption was 725.1 ships with farmers and other end users. GWh in 2019—1.4 percent of all the electricity con- AdP Group has finalized the water reuse action sumed in the country. The ZERO program sets the path plan for the various regional companies, assessing toward carbon and energy neutrality in the water sec- demand, forming partnerships, gauging additional tor, first, by decreasing energy consumption1 (e.g., by treatment needs (and associated investment), and raising energy efficiency and cutting water losses and computing potential water tariffs based on capital excess inflows); and, second, by producing renewable and operational costs. In parallel, the Portuguese law energy that meets 100 percent of AdP’s energy needs is being modified to fold wastewater reuse into con- (figure 5). cession contracts, avoiding the need for regulatory The program’s estimated total investment cost is EUR approval as each new project arises. 370 million, with EUR 40 million to improve efficiency, Benefits of the plan include freeing up freshwater EUR 292 million to increase generation from renew- resources for other uses, reducing and preventing pol- able sources, and the remaining amount to adjust lution of water bodies, reducing the use of synthetic operational controls and increase digitalization. It is fertilizers, and increasing resilience to drought. estimated that the program will save EUR 47 million Water in Circular Economy and Resilience (WICER) 7 FIGURE 5. Summary of AdP’s ZERO Program AdP 2030 VISION: To reach energy neutrality by 2030 HOW: 10% reduction of Electricity consumption AdP 2020 80% increase in Electricity generation from renewable sources: Electric Energy (Electricity) Biogas 48 GWh Annual consumption 725.1 GWh Wind 116 GWh % Total consumption in Portugal 1.4 % Hydropower 45 GWh Annual costs €65 M Solar PV 478 GWh Annual generation 34 GWh INVESTMENTS: Estimated amounts (2020-2030) €370 M Biogas 29.6 GWh OUTCOMES: Hydropower 0.2 GWh Annual Electricity generation (2030) 707.9 GWh/year Solar PV 34 GWh CO2 emissions reduction 206 Kt/year Source: Águas de Portugal. annually through avoided costs. Therefore, the pro- turbines are well known, their application in drink- gram’s payback period is about eight years. ing-water pipelines and in wastewater treatment plants is quite innovative. To become 100 percent self-sufficient with renew- able energy by 2030, AdP intends to use the internal Regarding energy efficiency, the group objective is to resources of the Group’s companies to boost energy cut 35.6 GWh/year from the energy required to treat generation from biogas, hydropower, and solar PV, and pump water for household consumption, equiv- and to start generating electricity from wind. In par- alent to a reduction of 8.5 percent over current con- ticular, AdP will invest in two new hydrolysis sys- sumption. Regarding wastewater treatment, estimated tems to produce biogas from sludge (included in the savings are in excess of 13 percent, with a forecast “sludge strategic plan”), forty-eight wind turbines, reduction of 37.8 GWh/year. thirty-eight hydropower plants, and solar plants This program aims to neutralize the equivalent of powered by floating panels on twenty-five reser- 746 GWh (corresponding to the estimated energy con- voirs. Various turbine technologies will be used in the sumption in 2030), thereby achieving energy neutrality hydroelectric power plants, including Francis, Pelton, at a 105.3 percent rate and equivalent carbon neutral- Kaplan, cross-flow (water supply), and Archimedes ity. The program is also designed to achieve neutrality screw (wastewater or small head). Although these in fuel consumption—765 GWh. 8 Water in Circular Economy and Resilience (WICER) In environmental terms, the neutrality program is pre- managed by agriculture irrigation associations. The dicted to eliminate 205,000 tonnes/year of CO2 emis- aim of this process is to increase and diversify supply sions by 2030. Other benefits include independence in order to promote integrated management of water from energy markets and price fluctuations. resources and hedge against potential failures of one of the sources. Water partnerships with relevant stake- Besides these key action areas, the plan also envisions holders are important to boost installed capacity, in cross-cutting issues such as the development and pro- combination with better water-use efficiency practices. motion of nature-based solutions and the preparation and implementation of a plan for green procurement Regarding infrastructure and equipment, a well-­ as part of the circular economy strategic challenge. structured strategy of asset management has been Also part of this challenge is implementing a national designed to reduce the vulnerability of critical assets solution for the control and treatment of agricultural to climatic and nonclimatic uncertainties, favoring and agro-industrial effluents. interoperability and redundancy. In this case, the objective is to maximize the value in the life cycle Resilience of assets based on the balance between risk, cost, AdP has developed over the past few years a strate- and performance. In terms of business continuity, gic plan for climate change adaptation, reflecting the AdP will develop an overall risk assessment, making group’s recognition that risks posed by future climate the best possible use of digitalization to improve the and extreme weather events are of growing concern. ­decision-making process. Triggered by this realization, each utility in the AdP Group developed its own operational plans for adapta- Implementation and Major Challenges tion and mitigation. AdP’s approach to addressing cross-cutting issues, AdP is currently monitoring, at a corporate level, the such as circular economy and resilience, includes implementation rates and achievements of those two major phases: (1) planning and guidelines devel- plans, and measuring, whenever possible, the impact oped at the corporate level based on best practices; of each action. and (2) adaptation and application of those plans and Additionally, the measures identified and imple- guidelines by regional utilities. The ZERO program, the mented by AdP utilities in response to past weather water reuse action plan and sludge strategic plan were events represented an important contribution to the developed using this approach within AdP’s strategic development of a portfolio of adaptive measures that framework. In a first phase, AdP focused on leveraging can be replicated within the Group. the best practices already in place for circularity and resilience. The basic idea was to build on the knowl- Special attention has been paid to measures related to edge and expertise already available and then to iden- governance, regulation, and communication across tify gaps and specific actions to address them, thereby different water stakeholders, which play increas- achieving the established goals in an adaptive process. ingly important roles in utilities management. In fact, debate among stakeholders is essential, as the effects Since the establishment of partnerships is crucial for of climate change do not follow sectoral boundaries, sound circular economy and resilience measures, one and urban users represent just a small part of water of the main challenges has been to streamline various demand when compared with agriculture, for example. objectives and expectations and create an effective communication channel in which each partner’s role Currently, AdP is identifying interconnecting systems is clearly defined. Constant dialogue and collabora- that draw on different water sources, including those tion with the scientific community are key to develop Water in Circular Economy and Resilience (WICER) 9 innovation; joint studies and projects that commingle The long-term (30  years) concession contracts under knowledge and “cultures” ensure that benefits flow in which AdP companies operate are crucial to imple- both directions. The same applies to projects with local menting the needed changes and investments without and regional stakeholders, such as agriculture and raising tariffs too high. industry, where potential conflicts in the use or avail- ability of water have led to an open dialogue among Lessons Learned the various users. With industry stakeholders, the util- Focus on what is working and build up slowly, while ity plays a key role—for instance, in producing treated involving everyone. The journey should start by focus- wastewater for reuse, collecting industrial wastewater, ing on practices that already contribute to circularity, and promoting sustainable solutions. To accelerate resilience, and efficiency, and conducting a thorough the implementation of solutions, it is always neces- diagnosis to set the utility’s baseline. Then, design a sary and appropriate to work with the environmental roadmap to become a sustainable utility, introducing authorities and the regulator. In the case of energy new practices and solutions that complement those self-consumption within the framework for renewable already in place to achieve the organization’s goals. energy communities, the distribution system operator The strategy should be developed through an open must be directly and permanently involved. But the and inclusive internal dialogue, involving as many objective is to create partnerships with other entities staff members as possible so they have ownership of as well—namely, local municipalities—to extend the the change. renewable energy community to every consumer and ensure system-wide energy self-consumption. Human resources matter. It is crucial to bring together resources and knowledge from different areas and to At the internal level for AdP, human resources pre- have the right skills and competencies. Institutional sented immense challenges during the transition. One commitment and empowerment of the staff are crucial, short-term challenge was finding workers with design as is identifying the individuals who will be the cham- skills and expertise in circular economy and resilience pions for driving change at later stages. “Acceleration solutions. To meet the challenge, AdP identified staff teams” in the holding company, made up of key already involved in developing innovative activities experts from the regional utilities, have also proven to at the regional utility or Group level, and incentivized be an important source of ideas and forward motion. discussions and knowledge dissemination through working sessions that fostered a collective approach to Partnerships are an excellent way to gather ideas from devising solutions. Also effective was the formation of the various sectors and to design integrated solutions thematic working groups or functional units involving that provide more value-for-money. Partnerships are colleagues across job functions. In the mid- and long- and will continue to be at the core of AdP’s business term, AdP has a human-resources strategy to identify models with local authorities, other water users (agri- skills, core competences, and training needed to drive culture, industry, tourism), research centers, other the water utility to excel. AdP collaborates with pro- utilities (at the national and international levels), and fessional associations and academia to prepare future public agencies and financing institutions. This vir- professionals for the water sector. tuous-circle approach fosters internal and external cross-fertilization in ways that generate innovative These pillars of the AdP strategy will be financed ways to meet imminent challenges. through Portugal’s budget plus funds of the EU Recovery and Resilience Facility, carefully consider- An enabling environment is indispensable. The ­external ing the impact of each measure on the service tariff. ­ regulations and ­policies) aspects of that environment ( 10 Water in Circular Economy and Resilience (WICER) (leadership and complement its internal aspects ­ Note ­expertise) to incentivize utilities to go the extra mile. 1. Even before the ZERO program was conceived, AdP had adopted and By shifting to a new business model, the water utili- implemented the Energy Efficiency and Production Plan for the period 2017–20. tomorrow’s providers ties of today can transform into ­ sustainable services. of ­ Background Documents In summary, the transition to a model centered on circu- AdP (Águas de Portugal). 2019. Project REUSE—Innovative production of lar economy and resilience requires a systemic approach water for reuse in agriculture. https://www.adp.pt/business/innovation​ that cuts across the entire society, engaging all parties /reuse. in interactive cycles of learning. From AdP’s point of AdP (Águas de Portugal). 2020. Strategic framework to address societal view, the following key factors for a successful transi- challenges. https://www.adp.pt/Quadro Estratégico de Compromisso do Grupo AdP. tion deserve to be highlighted: AdP (Águas de Portugal). 2020. ZERO program—energy and carbon • Sectoral policies should be aligned with an approach ­neutrality. https://www.adp.pt/Carbon Energy Neutrality. to competitiveness that decouples economic growth EC (European Commission). 2020. Communication from the Commission from resource depletion. to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions “A new circular • Action plans, policies, and regulations—like the economy action plan for a cleaner and more competitive Europe.” https:// ­ action plan on circular economy or the regulations eur-lex.europa.eu/A new Circular Economy Action Plan. on water reuse, energy efficiency, and waste—are EC (European Commission). 2019. Communication from the Commission to the European Parliament, the Council, the European Economic and important enablers. Social Committee and the Committee of the Regions: “The European Green • Financial instruments should be designed Deal.” https://eur-lex.europa.eu/European Green Deal. and deployed to trigger investments on the IAPMEI (Agency for Competitiveness and Innovation). 2015. Guide of financial incentives for circular economy initiatives. https://www.iapmei​ ground—for example, organization qualification, .pt/Guia Economia Circular. innovation and development, and productive MAAC (Ministry of Environment and Energy Transition). 2020. Regional innovation. water efficiency plans. https://apambiente.pt/agua/planos regionais de • The right governance models, such as the creation eficiência hídrica. of AdP VALOR, can accelerate changes that address MAOTE (Ministry of Environment, Spatial  Planning and Energy). 2015. PENSAAR 2020—A new strategy for the water and sanitation sector in societal challenges. Portugal. https://apambiente.pt/agua/PENSAAR 2020. • Corporate social responsibility should be viewed as Presidency of the Council of Ministers. 2017. Resolution of the Council of Ministers no.  190-A/2017 that approves “Leading the transition: A circu- an essential commitment. lar economy action plan for Portugal”. https://dre.pt/home/Plano de • Human capital fosters cultural change; a knowl- Ação para a Economia Circular em Portugal. edgeable and empowered workforce is essential to Presidency of the Council of Ministers. 2019. Decree 119/2019 establishing the legal framework for water production for reuse, obtained from the accomplishing change. treatment of wastewater, as well as its use. https://dre.pt/home/egime • The utility’s targets, strategies, and actions must be jurídico de produção de água para reutilização. sensitive to context. Presidency of the Council of Ministers. 2020. Decree 102-D/2020 that approves the general regime for waste management. https://dre.pt​ • Engaged stakeholders connected in partnerships /home/regime jurídico da deposição de resíduos em aterro e altera o regime da gestão de fluxos específicos de resíduos. help create a cooperative and trustful environment. Presidency of the Council of Ministers. 2020. Resolution of the Council of • Private service providers have an important role to Ministers no. 98/2020 that approves the Strategy. “Portugal 2030”. play in the value chain. https://dre.pt/home/Portugal 2030. Water in Circular Economy and Resilience (WICER) 11 © 2021 International Bank for Reconstruction and Development / The World Bank. Some rights reserved. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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