WATER IN CIRCULAR ECONOMYAND RESILIENCE (WICER) Anna Delgado, Diego J. Rodriguez, Carlo A. Amadei and Midori Makino © 2021 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org This work is a product of the staff of The World Bank. The findings, interpre- tations, 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. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Delgado, Anna, Diego J. Rodriguez, Carlo A. Amadei and Midori Makino. 2021. "Water in Circular Economy and Resilience (WICER).” World Bank, Washington, DC Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@ worldbank.org Design: KYNDA | creative digital agency Illustrations: Ron Schuijt SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 2 This report is a product of the initiative “Water in Circular Economy and Resilience” (WICER) of the World Bank Water Global Practice. WICER aims to promote a paradigm shift in ACKNOWLEDGMENTS the water sector. The shift involves moving away from linear thinking in the way we plan, design, and operate water infra- structure in urban settings towards a circular and resilience approach. The report was prepared by a team comprising Diego J. Rodriguez, Carlo Alberto Amadei, Midori Makino, and Anna Delgado. Information on the initiative and other related material can be found on the initiative’s website: www.world- bank.org/wicer The report has benefited from the strategic guidance and general direction of Rita Cestti, Gustavo Saltiel and Jennifer Sara. The authors received incisive and helpful advice and comments from World Bank colleagues, including Jean- Martin Brault, Hector Alexander Serrano, Clementine Marie Stip, Eileen Burke and Daniel Nolasco (consultant). The team is also grateful to peer-reviewers Ernesto Sanchez-Triana, Ravikumar Joseph, Amjad Khan, and Rochi Khemka for their constructive feedback. Finally, the team would like to thank the following individuals for their contributions: Elvira Cusiqoyllor Broeks Motta, Ravikumar Joseph, Minghe Tao, Eddie Hum, Irma Magdalena Setiono, Amry Dharma, Phyrum Kov, Stela Goldenstein, Irauna Bonilla, Mouhamed Fadel Ndaw, Simone Ferreira Pio, Alexandra Serra, and Nuno Broco for their support in developing the case studies that accompany this report; Steven Kennedy for editorial sup- port; Alejandro Scaff for graphic design; Pascal Saura, Erin Ann Barrett, and Fayre Makeig for publication support; and Meriem Gray and Li Lou for their help with communications. Report design was done by Kynda. This work was made possible by financial contributions from the Global Water Security & Sanitation Partnership (GWSP). SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 3 TABLE OF CONTENTS EXECUTIVE SUMMARY 1. CONTEXT AND CHALLENGES 2 . E M B R A C I N G C I R C U L A R E C O N O M Y A N D RESILIENCE IN URBAN WATER 3. THE WICER FRAMEWORK 4. CONCLUSIONS AND WAY FORWARD REFERENCES ANNEXES SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 4 Box 2.1 Box 3.9 Defining Circular Economy 14 Reusing treated wastewater for industrial purposes and restoration of ecosystems in Lingyuan City, China. 32 Box 2.2 What is resilience? 17 Box 3.10 Achieving 150 percent self-sufficiency by combining Box 3.1 energy efficiency and energy generation measures in Applying circular economy principles in Chennai, India. 23 Aarhus, Denmark. 33 LIST OF BOXES Box 3.2 Box 3.11 Maximizing the use of existing infrastructure: the case Making the most out of wastewater and fecal sludge. of Buenos Aires and Sao Paolo. 25 The case of Dakar, Senegal. 34 Box 3.3 Box 3.12 Improving the resilience of urban water supply in Conserving wetlands to enhance urban flood control Mexico. 26 systems in Colombo, Sri Lanka. 36 Box 3.4 Box 3.13 Improving Resiliency, Sustainability and Efficiency in A win-win partnership between a water utility and Uruguay´s National Water Supply and Sanitation industry to treat wastewater and restore a river in Company. 27 Arequipa, Peru. 38 Box 3.5 Box 3.14 Improving energy efficiency, reducing energy costs, Targeted green infrastructure for source-water and saving water. The cases of Mexico and Bosnia protection. The case of Espirito Santo, Brazil. 38 and Herzegovina. 28 Box 3.15 Box 3.6 Wastewater treatment to recharge aquifers and Achieving energy neutrality in a wastewater treatment reuse water in a context of water scarcity and conflict. plant with co-digestion in Ridgewood, United States. 29 The case of North Gaza. 39 Box 3.7 Box 3.16 Two examples of optimizing operations in water utilities. 30 Two utilities that are taking an integrated approach to circular economy principles. 42 Box 3.8 Reusing treated wastewater for industrial purposes and to restore the aquifer as part of an integrated wastewater management plan in San Luis Potosi, Mexico. 32 SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 5 LISTS OF FIGURES & TABLES Figure ES.1 Table 3.1 Water in Circular Economy and Resilience (WICER) How green and gray infrastructure can coexist 37 Framework 8 Table B.1 Figure 2.1 How circular economy principles apply to water systems 62 The linear approach: Freshwater abstraction, treatment, use, and disposal (treated or untreated) 16 Table B.2 How circular economy principles benefit water systems Figure 3.1 from four perspectives 6 The WICER framework 20 Figure B.1 Three pathways toward a circular economy. 65 Figure 3.3 Waste separation and possible treatment and use options 35 Figure B.2 The five Rs of circular water management. 66 SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 6 As cities grow, so do urban water challenges. It is estimated that the urban population worldwide will nearly double by 2050, an increase that has serious implications for urban water demand. Rising urban water use will also lead to more wastewater and more water pollution. Climate change further exacerbates EXECUTIVE SUMMARY pre-existing water stresses and is already having a measurable effect on the urban water cycle, altering the amount, distribution, timing, and quality of available water. Circular Economy has emerged as a response to the current unsustainable linear model of “take, make, consume, and waste”. Yet so far, the water sector has not been systematically included in high-level cir- cular economy strategy discussions. But interest in the water sector is growing. Circular economy offers an opportunity to recognize and capture the full value of water - as a service, an input to processes, a source of energy and a carrier of nutrients and other materials. In a circular economy, water is seen as the finite resource it is. Using water is avoided wherever possible and water and other resources are reused. In a circular economy, negative externalities are designed out, impacts on natural resources are minimized, and watersheds and other natural systems are restored. To achieve its full benefits, a circular water system needs to embrace resilience and inclusiveness. Resilience should be integrated into any circular strategy to prepare cities for uncertain shocks and stressors in order to avoid the undesired impacts of a disruption or failure of water services. As developing countries continue to grow and urbanize, they must be supported as they transition to a circular economy so vulnerable groups also benefit from those interventions. The objective of this report is to establish a common understanding of circular economy and resilience in the urban water sector. The report presents the Water in Circular Economy and Resilience (WICER) Framework (figure ES.1), which grew out of a literature review, complemented by lessons learned from case studies and World Bank experience. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 7 The proposed WICER framework should serve to guide practitioners who are incorporating the principles in policies and strategies, planning, investment prioritization, and design and operations. The report also provides case studies, examples, guidelines, and other relevant materials. The report describes the key actions (in dark blue in Figure ES.1) to achieve three EXECUTIVE SUMMARY main outcomes: 1) deliver resilient and inclusive services; 2) design out waste and pollution; and 3) preserve and regenerate natural systems. These will ultimately improve livelihoods while valuing water resources and the environment. Water in Circular Economy and Resilience (WICER) Figure ES.1 Water in Circular Economy and Resilience (WICER) Framework nd Be en ES for clima te a s e use r rgy e IC vest uncerta tie in ene f wa ficien DE RV and iin ble t E at e en and er SI S n c l a n Pl no m gy G VE N SI OU LU Op TW e INC tru f ur as e o tim ct infr e us ize CITY AST D op Y z RE imi IVER RESILIENT AN PL era Max E&P CO ing tion SUP Y RG E exist EN s VER S OLLUTION LI D INDUSTRY BI O S O ER sources IZ TIL FER Recove pply rr AGRICULTURE L e E NATURE u s s o D urc ify RE ers es E Div US Re R E S T O RE ns m na ch te tio ra solu a ge arg o aq e & p or ed PR ui fe Inc bas M S rs e- ES tur E ER Resto re degraded land na Y ST VE and watersheds S Water AND AL R E G E N ER A T E N A T U R Energy Nutrients SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 8 Applying the framework provides not only environmental benefits but also social, economic, and financial ones. The WICER framework can contribute towards the achievement of several Sustainable Development Goals (SDGs) and is also in line with the climate agenda. At the same time, examples provided in the report EXECUTIVE SUMMARY show that investments in circular and resilient systems yield economic and financial payoffs. Adopting the WICER framework could help utilities attract the private sector and improve access to various forms of finance. A circular and resilient water system can lower capital and operating costs and increase revenues, creating a more attractive environment for the private sector. Because the financing required to achieve the SDGs is substantial, and public funding alone will not suffice, enabling conditions are essential, because the private sector is often reluctant to invest in water and sanitation projects. The WICER framework brings out the importance of cross-sector linkages and multi-scale issues of water. Although most of the actions described in this report can be carried out by service providers, for the whole water sector to be fully circular and resilient, changes are needed at the river basin, city, and household levels and in other sectors, such as agriculture, energy, industry, and environment. Cities and water utilities will not achieve a fully circular and resilient water system without the proper policy, institutional, and regulatory framework in place. The WICER framework can be adapted and raised to the policy level in government and deployed to assemble relevant stakeholders for collaborative work across sectors. To avoid being locked into linear and inefficient systems, low- and middle-income countries can leap- frog and apply the WICER framework to design and implement circular and resilient water systems from the outset. The paper sets out to demystify the circular economy by showing that both high-income and low-income countries can benefit from it. They are not “all or nothing” propositions, and cities should not be reluctant to implement them—especially in view of the benefits they can bring. Summarizing, rethinking urban water through the circular economy and resilience lenses offers an opportunity to tackle urban water challenges by providing a systemic and transformative approach to delivering water supply and sanitation services in a more sustainable, inclusive, efficient, and resilient way. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 9 CHAPTER 1 1.1 KEY CHALLENGES OF THE CURRENT WATER CRISIS CONTEXT AND Rising populations, growing economies, and shifting consumption patterns have intensified the demand for water resources at a time CHALLENGES when 36 percent of the world’s population lives in water-scarce regions. More than 2 billion people live in highly water stressed coun- tries, and about 4 billion people experience severe water scarcity for at least one month of the year (WWAP 2019). Water stress will continue to intensify as demand for water grows. Global consumption has increased by a factor of six over the past hundred years and continues to mount (UNESCO and UN-Water 2020). Projections sug- gest that by 2050, global demand for water will increase by 20 to 30 percent (WWAP 2019) unless consumption patterns shift dramatically. By then, more than half the world’s population will be at risk of water stress. Intense water scarcity could displace as many as 700 million people by 2030 (HLPW 2018). Water is essential for socioeconomic development and is a contrib- uting factor in nearly every Sustainable Development Goal (SDG). Access to safe water and sanitation is vital for healthy and prosper- ous societies. Water supports healthy ecosystems and biodiversity. It is also crucial in producing food and energy and in most industrial processes, so the lack of access to water translates into slower economic growth. Some regions could see their growth rates decline by as much as 6 percent of GDP by 2050 because of water-related losses in agriculture, health, income, and prosperity (World Bank 2016a). Nevertheless, water is undervalued, and proper incentives are not in place to use water resources efficiently. The inability to recognize the value of water is the main cause of its waste and misuse (United Nations 2021). While water stress and scarcity are intensifying, water utilities around the world still have massive water losses in their dis- tribution systems, with non-revenue water (water in the distribution system but not billed because of physical leaks or commercial fail- SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 10 ures) accounting for 25 to 50 percent of the total water supply and, in some UN-Water 2020). Polluted runoff during floods and higher pollutant concen- emerging markets, up to 75 percent (IWA 2015). At the same time, farmers, trations during droughts further contaminate water resources. Water-related industries, businesses, and households often have few incentives to consume climate risks cascade through food, energy, urban, and environmental sys- less water or to become more efficient. In fact, water is used more wastefully tems, causing major socioeconomic damage. and inefficiently in water-scarce areas than in areas with abundant water resources, often because of inappropriate policies, pricing, and incentives (Damania et al. 2017). 1.2 WATER CHALLENGES IN URBAN AREAS Water pollution caused by human activities damages health, the economy, Projections show that by 2050, two-thirds of the world’s population will live and the environment, while further endangering the sustainability of water in urban areas, creating an unprecedented demand for reliable, safe, and supplies. Water quality is declining in natural bodies owing to inadequate sustainable urban water supply and sanitation services. Much of this transi- sanitation, lack of wastewater treatment by residential and industrial users, tion will occur in developing-country cities with populations of at least 1 million and polluted runoff from farmland and storm drains. Unregulated discharges (UNESCO and UN-Water 2020). Many countries already face challenges in add to the pollution. Around 80 percent of the world’s wastewater—more than meeting the needs of their growing urban populations. The situation is par- 95 percent in some developing countries—is still released untreated into the ticularly difficult in low- and middle-income countries, where urbanization is environment (WWAP 2017). Humankind is polluting water resources much occurring more rapidly, often with less planning. Even though water and san- faster than nature can recycle and purify them (UN n.d.). Rich and poor coun- itation access rates are generally higher in urban than rural areas, planning tries alike face water-quality challenges, with the range of pollutants – and and infrastructure have not kept pace in the cities (WHO and UNICEF 2019). challenges – usually expanding with prosperity. Water quality has an impact There is still a lack of adequate and inclusive water and sanitation infrastruc- on health, agriculture, and the environment, outcomes that are more serious ture and services for all, especially in informal settlements. than previously understood and that cause observable economic slowdowns (Damania et al. 2019). Water-related challenges in urban areas can have wide-ranging effects, which often propagate through the economy. Cities play a critical role in Climate change is straining water resources worldwide. Climate change global economics, with some economists estimating that they account for 80 has a measurable effect on the water cycle, altering the availability, quantity, percent of the world’s gross domestic product (Damania et al. 2017). Although and quality of water. Climate change has altered hydrological cycles and home to over half the world’s population, cities are sited on less than 3 per- increased the timing, frequency, and intensity of water-related extremes, such cent of the world’s land surface (Akbari, Menon, and Rosenfeld 2009), creating as floods and droughts, making water availability more unpredictable and an intense concentration of assets and people. The economic performance unreliable. These events aggravate conditions everywhere—in both water- of firms, businesses, and industries in cities is affected by water availability. stressed regions and regions with abundant water resources (UNESCO and Already, one in four cities, registering USD 4.2 trillion in economic activity, are UN-Water 2020). Since 1990, water-related catastrophes have accounted for classified as water stressed (Damania et al. 2017). The difficulties in securing almost 90 percent of the top thousand most devastating natural disasters, reliable water supply are accompanied by the growing need to sustainably causing damage amounting to 15 to 40 percent of annual GDP for some manage sanitation and stormwater (Varis et al. 2006). Continued urbaniza- countries (HLPW 2018). Water quality is also affected by climate change. tion and land-use changes often encroach on drainage capacity, increasing For example, higher water temperatures and lower dissolved oxygen levels flooding risks. Cities and their residents (households, industries, businesses) have reduced the self-purifying capacity of freshwater bodies (UNESCO and are one of the main causes of water pollution, through discharges of SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 11 untreated wastewater, sewer overflows, and polluted stormwater runoff. More 20 percent (Andres et al. 2019). The level of investment needed in the water flooding and a multitude of adverse human and economic consequences fol- supply and sanitation sector to meet the SDGs ranges from USD 74 billion to low, compromising growth and welfare and directly impairing human health USD 166 billion annually (Hutton and Varughese 2016), but estimates show (Haddad and Teixeira 2015; OECD 2015; Huntingford et al. 2007). that governments and development agencies have insufficient funds to meet these requirements (Kolker et al. 2016). The urban water supply and sanitation sector is also affected by the vari- ability, seasonality, and extreme weather events aggravated by climate Circular economy and resilience principles offer an opportunity to tackle change. More frequent natural disasters bring too much or not enough these urban water challenges by providing a systemic and transformative water and damage water infrastructure. Effluent discharge in floods can approach to delivering water supply and sanitation services in a more contaminate soil, ground water, and surface water. In severe droughts, water sustainable, inclusive, efficient, and resilient way. The circular economy availability and sources can disappear or be made more vulnerable to pol- shows how to address the increasingly complex challenges associated lution. During droughts, to compensate for the loss of surface-water supply, with finite water resources and growing urban demand, undervalued water, groundwater is overextracted. Water scarcity reduces the self-cleaning financial and operational inefficiencies, pollution and degraded ecosystems, capacity of sewers, while flooding exacerbates stormwater overflows and pol- equity, and sustainable urban water supply and sanitation services. Circular lution. Future climate change and various natural hazards will put additional economy initiatives can also help attract the private sector by creating new stress on water systems and damage the quality and delivery of services, with business models, adding new funding sources and helping to close the exist- the greatest effects falling on the poor. ing funding gap. In the face of highly uncertain events such as the COVID-19 pandemic and climate change, it is also crucial for urban water systems to Urban water supply and sanitation service providers, which are often public be resilient. A system that mainstreams circularity approaches should also entities, face the brunt of these challenges, on top of existing performance incorporate resilience metrics and approaches. A resilient city and its water and funding issues. Poor performance is usually caused by complex and utilities can adapt to changing conditions and withstand shocks and stressors multidimensional problems that stem from a vicious cycle of dysfunctional (climate and nonclimate) while still providing essential services. As countries political environments, inefficient practices, and a lack of dedicated leader- embark on initiatives to recover from the pandemic, there is an opportunity ship (Soppe, Janson, and Piantini 2018). Low operating efficiency (such as high to build back better and greener for a resilient, inclusive, and sustainable non-revenue water and low energy efficiency, usually linked to aging infra- recovery (World Bank 2020). Cities are strategically positioned to be change structure), inefficient investments, and low tariffs make it difficult for water leaders, and they have a critical role to play to reduce environmental pres- utilities to recover costs and improve service sustainability. This has resulted sures, provide for equitable distribution of benefits, ameliorate risks and in the water supply and sanitation sector relying on public sector financ- uncertainties, and improve sustainability (UNEP 2017). In cities, the density ing and subsidies for its investment, operations, and maintenance needs. and proximity of people and economic activities reduce the economic and Despite large investments in the sector by governments and development environmental costs of providing most infrastructure and services. Circular agencies over the past 10 to 15 years, the sustainability of water supply and economy and resilience actions taken by cities can have huge beneficial sanitation services in developing and emerging economies has not improved outcomes, both in urban areas and elsewhere through a ripple effect (UNEP significantly (Soppe, Janson, and Piantini 2018). Moreover, subsidies are often 2017). poorly targeted and fail to reach the poor, disproportionately benefiting upper-income groups. Fifty-six percent of subsidies end up in the pockets of the richest 20 percent of the population, while only 6 percent go to the poorest SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 12 CHAPTER 2 2.1 WHAT IS CIRCULAR ECONOMY, AND WHY DOES IT MATTER? EMBRACING Circular economy provides a framework for redefining growth and designing an economy that is restorative and regenerative by CIRCULAR design, bringing benefits for society and the environment. There is no standardized definition for circular economy (Kirchherr, Reike, and Hekkert 2017; Kalmykova, Sadagopan, and Rosado 2018; Korhonen et al. 2018). But the competing definitions all emerged in response ECONOMY AND to the linear “take, make, consume, and waste” industrial model. Based on the unsustainable assumption that “resources are abun- dantly available, easy to source, and cheap to dispose of” (European RESILIENCE IN Commission 2014), the linear model has resulted in environmental degradation and pollution. Circular economy principles draw and build on concepts developed years ago. Notable among them are the spaceman economy (Boulding 1966), limits to growth (Meadows et al. URBAN WATER 1972), performance economy (Stahel and Reday-Mulvey, 1976; Stahel 2006), industrial ecology (Frosch and Gallopoulos, 1989; Graedel and Allenby, 1995), “cradle-to-cradle” (Braungart and McDonough 2002), “planetary boundaries” (Rockstrom et al. 2009), and the behavioral “Rs” (reduce, reuse, recycle, recover, refurbish, repair). All feature the principle of maximizing the value of resources recognizing that the Earth’s resources are limited1, and that the planet itself has a lim- ited capacity for managing and assimilating pollution (Kalmykova, Sadagopan, and Rosado 2018). Although most of the strategies grouped under circular economy are not new in isolation, the concept offers a new framing under a useful conceptual umbrella (CIRAIG 2015; Blomsma and Brennan 2017). A comprehensive and widely used definition is the one developed by the Ellen MacArthur Foundation (box 2.1). 1 Should the global population reach 9.6 billion by 2050, the equivalent of almost three planets could be required to provide the natural resources needed to sustain current lifestyles (UN, N.D.) SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 13 2030 Agenda for Sustainable Development. In 2017, the World Business Council Box 2.1 Defining Circular Economy for Sustainable Development published a report for CEOs on the importance of circular economy in businesses (WBCSD 2017) and has since launched a A circular economy is restorative or regenerative by intention and design. program on circular economy, recognizing it as a key element in mitigating It entails gradually decoupling economic activity from the consumption climate change, biodiversity loss, and resource scarcity. of finite resources and from environmental degradation. As an economic system, it seeks to minimize waste and make the most of resources. The In 2019, the Organisation for Economic Co-operation and Development circular economy approach replaces the end-of-life concept with restoration, (OECD) launched the Programme on Circular Economy in Cities and eliminates the use of toxic chemicals that impair reuse and return to the Regions, acknowledging that “transitioning to a circular economy is key for biosphere, and aims to eliminate waste through superior design—of materials, a prosperous, inclusive and sustainable future.” In 2020, the United Nations products, systems, and business models. Underpinned by a transition to Development Programme (UNDP) and UNEP published a joint guidance note renewable energy sources and a more sustainable use of biodiversity on circular economy and climate change mitigation. The note calls for circu- and ecosystems, the circular model builds economic, natural, and social lar economy strategies to be included in revisions of Nationally Determined capital. A circular economy not only reduces waste and resource needs Contributions under the Paris Agreement, given that circular economy but also unlocks additional value from natural resources and supports the could help reduce the current emissions gap by half (UNEP and UNDP 2020). development of an ecosystem in which innovations in sustainability create Business and corporations around the world are also taking concrete actions new arenas for economic activity. It is based on three principles: and implementing circular business models (EMF 2020). The World Bank has hosted a series of learning events on Circular Economy and Private Sector • Design out waste and pollution. Development and is launching a Global Program for Pollution Management • Keep products and materials in use. and Circular Economy. • Regenerate natural systems. Many governments and international organizations are promoting and Source: Adapted from the Ellen MacArthur Foundation. embracing circular economy principles to achieve the SDGs. At the coun- try level, China introduced its Circular Economy Promotion Law in 2009 to improve resource efficiency, protect and improve the environment, and A circular economy is fully aligned with the UN 2030 Agenda, which recog- achieve sustainable development; it has since included circular economy nizes that objectives of environmental, social, and economic sustainability in its five-year plans. After high-level discussions around circular economy can no longer be met separately, in isolation from each other. In 2017, the in 2011, the European Commission recognized the need to move toward a World Economic Forum, in cooperation with the United Nations Environment circular economy and announced its ambitious Action Plan for the Circular Programme (UNEP), launched the Platform for Accelerating the Circular Economy in 2015 (European Commission 2015). Since then, several member Economy. The platform encourages and enables public and private sector states have unveiled their own circular economy strategies. In 2020 the EU leaders to commit to accelerate collective action. In 2018, UNEP also entered adopted a new Circular Economy Action Plan (European Commission 2020) into an agreement with the Ellen MacArthur Foundation to scale up and accel- to “achieve climate-neutrality by 2050, to preserve the natural environment, erate the shift toward circular economy. In 2019, UNEP launched the “circularity and to strengthen the economic competitiveness” as part of the European platform” to provide an understanding of the circularity concept, its scope, Green Deal, Europe’s new agenda for sustainable growth. In Latin America and and how critical it is for achieving the targets of the Paris Agreement and the the Caribbean, the circular economy concept has gained high-level political SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 14 attention. More than 80 public initiatives related to circular economy have 2.2 APPLICATION OF CIRCULAR ECONOMY already been launched in the region (Schröder et.al. 2020). Policy makers in PRINCIPLES IN THE WATER SECTOR many other countries are giving the circular economy principles increased priority. Left alone and undisturbed, water is a sustainable and circular resource. Yet so far the water sector has not been systematically included in high-level A circular economy not only creates benefits for society and the environ- circular economy strategy discussions. Many circular economy initiatives ment but also makes economic and financial sense. Estimates show that and policies have focused on the manufacturing and solid waste industries moving toward a circular economy could unleash USD 4.5 trillion of global – due to the origins of the concept. But interest in the water sector—one of economic growth by 2030 by avoiding waste, making businesses more effi- the largest untapped sectors for the circular economy (IWA 2016)—is growing cient, and creating new employment opportunities—all while helping achieve given its potential. Circular economy offers an opportunity to imitate and the Sustainable Development Goals, regenerate and protect our ecosystems, restore the natural cycle of water, where nothing is considered a waste but an and enable a sustainable post-COVID recovery (UNEP FI 2020). These virtues input to another process. Circular economy can be used to transform con- are also in line with the Green Resilient Inclusive Development framework sumption patterns and help decouple economic growth from water use and presented at the 2021 spring meetings of the World Bank and the International water pollution (UNEP 2015). Circular economy is an alternative to business as Monetary Fund. In Europe, estimates show that a circular economy could usual, which, if it persists, could lead by 2030 to a 40 percent shortfall between represent a 7 percent increase in GDP by 2030, compared with the present forecasted demand for water and its available supply (UNEP 2015). Annex B development scenario, with additional positive impacts on employment (EMF summarizes some key resources on circular economy and water. 2015). In a circular economy, the full value of water is recognized and captured. Economic and financial benefits of implementing circular economy principles Water offers value in several ways, and it can play a number of roles in a cir- can also be seen at a smaller scale. There are many cases (including the cular economy: As a service (for example, it provides access to water supply ones in this report) where, for example, investments to improve resource effi- and sanitation, it is used for cooling and heating purposes and it is needed ciency were recovered in less than two years due to operational savings (see to maintain and recover natural ecosystems), as an input to processes (in the case of Monclova, Mexico, box 3.5) or where resources were recovered industry and agriculture, for example), as a source of energy (kinetic, ther- and sold, creating a revenue stream for the utility (see the cases of Chennai, mal, biogas) and as a carrier of materials such as nutrients and chemicals described in box 3.1, and San Luis Potosi, in box 3.8). Circular economy could (IWA 2016; EMF, ARUP, and Antea Group 2018). Instead of the current linear therefore also reduce the financial risk of infrastructure projects, improve the approach to the management of water (figure 2.1), circular economy identifies rate of return, and create a more attractive environment for the private sector. opportunities within three interrelated “pathways” (water, energy, and mate- Because the financing required to achieve the Sustainable Development rials) (IWA 2016), leveraging and using all valuable resources in water and Goals is substantial, and public funding alone will not suffice, enabling con- ideally providing additional revenue streams for the water sector (Rodriguez ditions are essential, because the private sector is often reluctant to invest in et al. 2020). water and sanitation projects. Circular economy recognizes water as the finite resource it is. By adopting a systems perspective and mimicking the natural water cycle, circular econ- omy avoids using water when possible and closes loops at several levels by improving water (and other resources) efficiency, minimizing waste, and SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 15 Figure 2.1 The linear approach: Freshwater abstraction, treatment, use, and disposal (treated or untreated) Polluted discharge Treatment of Abstraction Distribution Use potable water Collection Treatment Disposal focusing on the behavioral Rs—reduce, reuse, recycle, replenish, recover, and natural capital, and curtail human disruptions to natural water systems (EMF, retain. (Jeffries 2017; WBCSD 2017; EMF, ARUP, and Antea Group 2018; ING Bank ARUP, and Antea Group 2018). Interventions are designed as part of river basin 2018). Moreover, in a circular economy, a systems thinking, especially at the planning frameworks to safeguard watersheds, maximize environmental and basin level, is used to identify and leverage opportunities within the sector and economic benefits, improve efficiency and resource allocation, and boost with other systems and sectors (notably industry, energy, and agriculture) inclusive practices (Rodriguez et al. 2020). In a circular economy, the water (EMF, ARUP, and Antea Group 2018). Circular economy provides a framework sector also mitigates its emissions of greenhouse gases with improved and that builds on already established water-sector concepts such as integrated energy efficient operations. It promotes the use of renewable energy, ideally water resources management (IWRM), integrated urban water management self-generated (biogas, thermal energy sourced in wastewater, small hydro- (IUWM), energy efficiency, reduction of non-revenue water (NRW), nature- power, and so forth), in line with climate change goals. based solutions, and resource recovery from wastewater. It also fits and builds on ongoing initiatives of the World Bank, such as Utility of the Future and Citywide Inclusive Sanitation. 2.3 RESILIENCE AND INCLUSIVENESS IN In a circular economy, negative externalities are designed out, the impact on CIRCULAR ECONOMY SYSTEMS natural resources is minimized, and watersheds and other natural systems are restored. A circular economy acknowledges the economic importance of A planning exercise or investments prioritized around circular economy rivers, lakes, oceans, wetlands, and groundwater. It values water as natural principles should foster efficient and sustainable outcomes; but these do capital. A circular economy preserves and enhances this natural capital not always translate into resilient water systems. Some circular trends instead of degrading it, by embracing regenerative practices (Jeffries 2017). might even compromise resilience (Circle Economy 2020). For example, a Water resources are conserved and pollution minimized by, for example, resource-efficient system that focuses only on eliminating supply redundan- expanding wastewater treatment and avoiding discharges of industrial pol- cies could become less resilient. But if instead resource efficiency is achieved lutants. Watersheds and natural ecosystems are restored through initiatives by reducing water losses and increasing energy efficiency (using fewer that maximize environmental flows, replenish aquifers, manage and preserve resources to obtain the same outputs), it could help make the system more SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 16 extreme weather events, demographics, and pandemics) in order to avoid Box 2.2 What is resilience? the undesired impacts of a disruption or failure of water services (Rockefeller Foundation et al. 2019). Risk assessments and resilience planning for con- Resilience is the ability of individuals, communities, institutions, businesses, tingencies ensure that when failures do occur, they can be addressed in a and systems to survive, adapt, and thrive in the face of stress and shocks, and way that limits adverse events. Resilient water utilities, networks, and systems even to transform when conditions require it. Three capabilities characterize a anticipate, absorb, adapt, and recover from disruptive events and continue resilient system: persistence, adaptability, and transformability. delivering essential services to populations. • Persistence refers to the ability of a human or a natural system to maintain A circular economy needs to be inclusive to achieve its full benefits for coherent function under changing conditions and disruption without all. If inclusiveness is not explicitly included and carefully integrated in cir- altering its identity. The existing components, configuration, and interactions cular economy plans and actions, there is a risk that poor countries and of the system enable it to return to its prior function under the exogenous vulnerable groups will not reap the benefits enjoyed by others. Developing stresses and shocks to which it is exposed. countries—especially the least-developed countries—may struggle to access the resources, knowledge, and technologies to transition toward a circular • Adaptability refers to a system’s ability to maintain coherent function economy (UNIDO n.d.). Additionally, if circular economy is implemented only by modifying its identity to accommodate change. Adaptability is about in high-income countries (in part to reduce their dependency on imported continually adjusting responses, innovating, and reorganizing system parts raw materials), producers and exporters in developing countries could face and relationships relative to changing external conditions and internal adverse outcomes (UNIDO n.d.; Preston et.al. 2019). Evidence shows, how- interactions. Adaptability allows for system development and realignment ever, that developing countries can also benefit from implementing circular within its current equilibrium—adjusting to sustain its present function. economy principles. For example, estimates show that developing countries possess up to 85 percent of the opportunities to improve resource productiv- • Transformability refers to a system’s ability to change its identity and ity (McKinsey Global Institute 2011). At the national scale, it is also important to to establish a new function in a novel equilibrium when pushed beyond integrate inclusiveness in circular solutions to avoid unwanted consequences the threshold of its present state. It is the ability to change from one type and ensure that key users and stakeholders, regardless of income levels, are of system to another in the presence of different controlling variables, properly identified and participate in key consultation and decision-making structures, functions, and feedbacks. Transformation results in a change in processes. For example, initiatives to reuse wastewater for sale to industrial both system identity and function. Transformability is the capacity to create users should consider impacts on—and provide solutions for—small farm- a new system when ecological, economic, or social conditions make the ers who might have been using that wastewater for irrigation. Initiatives to existing system untenable. improve resource efficiency, such as reducing non-revenue water – which includes reducing physical leaks and illegal connections – should also assess Source: World Bank 2016b, Rockefeller Foundation et.al. 2019, Boltz et al. 2019 why those illegal connections are happening and provide solutions to connect everyone. An inclusive agenda should be visible at the utility level and in the utility’s strategic plans. As developing countries and their cities continue to resilient and more circular. Resilience (defined in box 2.2) should therefore be grow, it will be vital to support middle- and low-income countries as they integrated into any circular strategy to prepare the cities for uncertain shocks transition toward a circular economy and ensure that vulnerable groups and stressors (climate and nonclimate, such as changes in demand, land use, benefit. For example, the World Bank’s Citywide Inclusive Sanitation initiative SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 17 supports governments and offers resources, good-practice documenta- tion, and other materials to advocate for, design, and implement sanitation solutions for all, especially the poor, ensuring that services are inclusive. Multistakeholder platforms, such as those promoted by the 2030 Water Resources Group, ensure that key stakeholders, including the poor, participate in the creation of plans and investments to build resilient water systems. Section 3 presents a framework for water in circular economy and resilience to guide practitioners that want to incorporate the principles into water sector planning, policies and strategies, investment prioritization, design, and opera- tions. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 18 X CHAPTER 3 3.1 WHY, HOW, AND FOR WHOM? TITLE THE WICER The WICER framework sets out the core elements of a circular and resilient water system. It builds on the literature review presented in section 2, folds in lessons from existing projects and case studies FRAMEWORK (see boxes and Annex A), and draws on World Bank knowledge and expertise. The framework was developed with three distinct outcomes in mind: (1) to deliver resilient and inclusive services; (2) to design out waste and pollution; and (3) to preserve and regenerate natural systems. Each of the outcomes depends on three actions, as shown in the two outermost circles of figure 3.1. The outcomes and actions can be considered in any order, since the system described is circular and all outcomes are interlinked. The outcomes and actions are examined in detail in sections 3.2 and 3.3. Cross-cutting actions that complement the framework are explained in 3.4. The rest of this section surveys the framework’s context. Within international organizations and client countries, extensive dis- cussions are taking place on how to mainstream and operationalize circular economy and resilient approaches. The proposed framework brings forward the latest thinking on the subject. It is informed by practical examples from around the world in an effort to support the Bank and client countries as they incorporate circular economy and resilience in their policies, strategies, plans, investments, and opera- tions. Although many World Bank initiatives and projects are already contributing to the achievement of a WICER system, the framework structures and frames them under a comprehensive umbrella. The WICER framework is highly relevant to the world’s Sustainable Development Goals (SDGs). It contributes directly to the achievement of SDG 6 (availability and sustainable management of water and sanitation for all) and is linked to several other SDG targets: SDG 1.4 (achieving universal access to basic services), SDG 3.9 (reducing water pollution-related deaths), SDG 7.2 (increasing the share of renewable energy), SDG 7.3 (improving energy efficiency), SDG 8.4 SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 19 e (WICER) Water in Circular Economy and Resilience (WICER) Figure 3.1 The WICER framework adoption of clean and environmentally sound technologies), SDG 11 (making cities inclusive, safe, resilient and sustainable), SDG 12.2 (sustainable manage- ment and efficient use of natural resources), SDG 12.4 (environmentally sound management of chemicals and waste, and significantly reduce their release d Be en te an S ima ies into the air, water and soil), SDG 12.5 (reducing waste generation through CE e r cl t use r rgy e I t fo tain ene f OU ze ope es ncer wa ficien DE prevention, reduction, recycling and reuse), SDG 13.1 (strengthening resilience RV inv te u ble t E d a an lim en and er SI and adaptive capacity to climate-related hazards and natural disasters), SDG S T W rations n gy a nc Pl no 14.1 (reducing marine pollution), and SDG 15.1 (ensuring the conservation, res- G VE N AST toration and sustainable use of terrestrial and inland freshwater ecosystems SI OU LU and their services). Op TW e INC tru f E&P ur as e o tim ct infr e us ize CITY AST WICER offers a long-term vision for countries planning their urban water D op Y z RE imi IVER RESILIENT AN PL era supply and sanitation services. This report intends to demystify circular econ- OLLUTION Max E&P CO ing tion SUP Y RG E omy (it is not, for example, an all-or-nothing proposition) and to show that exist EN s VER DS the WICER framework can be applied worldwide. In fact, many water supply OLLUTION LI INDUSTRY BI O S O and sanitation utilities are already implementing projects that contribute to Recove a WICER system. Sometimes one encounters reluctance to focus on circular ER rces IZ TIL FER Recove economy initiatives, especially in low- and middle-income countries, because r re ly sou they seem impossible to achieve—too complex and overwhelming, or too so r AGRICULTURE upp urc DEL expensive. Some may feel WICER should be implemented only by high-in- re NATURE s es s our come countries or only once “the basics” are met. It is true that it would be ify ce RE ers unrealistic to demand the application of all the concepts in the framework in s E Div US the short term. In fact, most high-income countries are not even close to be Re R E S T O RE completely circular and resilient. However, with the right enabling conditions, ns low- and middle-income countries could leapfrog high-income countries, m na ch e tio at lu a ge arg or so aq e & p or ed which are mired in linear systems, and develop circular systems at the outset, PR ui fe Inc bas M S rs e- from scratch. The framework aims to provide guidance on how to get there, at ES tur E ER Resto re degraded land na Y ST each country’s pace, depending on the local conditions and the current base- Water VE and watersheds LS Water AND A line. Where infrastructure and projects remain to be designed and built, there R E G E N ER A T E N A T U R Energy Energy are opportunities Nutrients to embrace the WICER framework and develop infrastruc- Nutrients ture that sidesteps linear, inefficient assumptions. Where systems are already in place, planners will need to assess and prioritize which WICER interventions would have the greatest impact, retrofitting where appropriate. There are few (improving resource efficiency to decouple economic growth from environ- prerequisites for applying the framework, as it is adaptable to local conditions mental degradation), SDG 9.1 (developing quality, reliable, sustainable, and and can be used to identify pathways toward circular economy and resilience resilient infrastructure), SDG 9.4 (increasing resource-use efficiency and that make sense in all contexts. Moreover, the WICER framework is fully aligned SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 20 with - and would contribute to meet the requirements of -the World Bank’s ministerial, federal) and by multiple economic sectors (industry, agriculture, Environmental and Social Standard 3 (ESS3) on resource efficiency and pollu- energy, and environment) at different entry points. tion prevention and management. Although the WICER framework was developed to be used primarily by city 3.2 OUTCOMES OF THE WICER FRAMEWORK planners and decision makers in urban water supply and sanitation utilities, it can also be used to link the urban and rural worlds. For the reasons noted in As noted, the three main outcomes for the urban water sector and cities are the context section, including the potential for cities to be leaders of change, to (1) deliver resilient and inclusive services; (2) design out waste and pol- the target audience of this report are city planners and decision makers in lution; and (3) preserve and regenerate natural systems. The outcomes are urban water supply and sanitation utilities. However, circular economy and summarized below; the actions required to achieve them are treated in detail resilience principles can also be applied in rural and peri-urban settings. Peri- in section 3.3 and 3.4, which constitutes the bulk of this report. urban areas and small towns can play a critical transition role in connecting the rural and urban worlds—for example, by being the end users of treated Outcome 1. Deliver resilient and inclusive services. Water supply and sanita- wastewater and other by-products of wastewater for agricultural purposes. tion services are designed, planned, and implemented in a way that ensures By using the framework to connect urban and rural worlds, opportunities and their long-term resiliency and inclusiveness. Resilient utilities, networks, and synergies can be identified, tradeoffs mitigated, and relevant stakeholders systems anticipate, absorb, adapt, transform if needed, and rapidly recover brought together. from a disruptive event. Inclusive services ensure that everyone, regardless of gender and social and economic class, has access to water supply and The WICER framework can bring together and influence change across sanitation and that vulnerable groups are not negatively impacted by circular sectors. Because water is a resource for many sectors, achieving full circular economy and resilient interventions. Instead, they are included and partic- and resilient water systems also depends on pursuing in parallel circular and ipate in strategy development, and they also reap the benefits of circular resilient actions in other sectors. For example, improved practices should economy and resiliency. happen in agriculture (such as the implementation of efficient irrigation techniques, efficient rainwater harvesting, agricultural land management and Outcome 2. Design out waste and pollution. Water supply and sanitation efficient use of fertilizer (UNEP, 2015)), in the industrial sector (such as water utilities transition toward resource efficiency and effectiveness, producing reuse and recycle in industrial operations and the adoption of waterless and more output (water, energy, nutrients and other resources and services) with zero discharge processes), and at the household level (such as the adoption less input (less energy, less chemicals), closing the loops of materials and of water efficient appliances, recovering heat from wastewater and harvest- resources as much as possible and keeping resources in use, while minimizing ing rainwater). The WICER framework acknowledges these cross-sectoral and the impact on the environment. At the same time, interventions also contribute intra-regional issues, and can be used to engage with stakeholders across toward improved resilience of the system. sectors. WICER also emphasizes the need to analyze, plan, and invest in water interventions using a systems perspective, one extending beyond city Outcome 3. Preserve and regenerate natural systems. A circular and resilient boundaries to take into account river basins and watersheds and all relevant water sector not only minimizes waste and negative environmental impacts, stakeholders. The framework can be applied to retrofit existing infrastructure, but also actively restores precious natural systems, recognizing their eco- plans, and actions, or to design new plans and investments. The framework nomic value and their importance for a sustainable future. The value of water can also be adapted for use by stakeholders at all levels (river basin, region, resources is fully recognized, and aquifers and watersheds are carefully man- SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 21 aged, preserved, recharged, and restored. Nature-based solutions are integral of the conditions of the receiving waterbody — minimizing treatment needs to the solution. (upstream and downstream) (Rodriguez et al. 2020); (3) to protect the city from floods and implement integrated water storage solutions (GWP and IWMI 2021), including nature-based solutions (Browder et al. 2019) and natural and 3.3 KEY ACTIONS TO ACHIEVE A WICER artificial aquifer recharge (Clifton et al. 2010). SYSTEM This systems approach must also be inclusive, engage all relevant stakehold- The following sections provide concrete examples of the actions needed to ers, and take into account, during planning and implementation, the benefits achieve the three key outcomes of the WICER framework. The references and and potential impacts for everyone. In order to be fully inclusive, off-grid resources cited in the report and in Annex A cite additional reports, guidelines, supply solutions also need to be considered in the planning exercise to ensure and case studies on each action. The boxes show concrete examples of the that all urban dwellers receive an affordable service that meets basic needs implementation of these principles. The listed actions are not in any particular and is safely managed (Misra and Kingdom 2019). Urban water and sanitation order, since most of the elements of WICER are interconnected. The actions to utilities must shift from a linear thinking that focuses on achieving service focus on will depend on the context and available resources in an individual standards in a financially sustainable way to an integrated approach that case, but ideally the framework should be used to create a holistic long-term secures reliable and sustainable water supplies now and into the future for strategy. Cross-cutting issues are presented in section 3.4. everyone, including vulnerable groups. World Bank (2016c) further explores how to mainstream water resources management in urban projects. 3.3.1 Actions to deliver resilient and inclusive services Diversifying and protecting water supply sources support utilities and help cities hedge against risks. Utilities and cities must build diversified and This outcome hinges on three actions: (1) diversifying supply sources; (2) opti- dynamic water resource portfolios, making sure to protect and explore the use mizing the use of existing infrastructure; and (3) planning and investing for of all available water sources and, whenever possible, to use fit-for-purpose climate and nonclimate uncertainties. approaches to minimize treatment costs. Ideally, to ensure resilience and flexibility of systems, the diversified water portfolio should include sources having different risk and cost profiles (for example, combining surface and Action 1. Diversify supply sources groundwater – see also Outcome 3. Action 3.), sources that respond to stress at different time scales, and, if possible, sources that have low vulnerability to Actions must be planned and implemented using a systems approach. shocks and stresses, such as desalination and treated wastewater (box 3.1). Specifically, interactions should be considered at the basin level because World Bank (2018a) offers different examples of cities with diversified water cities are part of catchments and have, in most cases, multiple water-sup- portfolios such as the case of Windhoek, Murcia and Singapore. By combining ply sources. Taking a basin-level approach makes it possible to do several the concepts of fit for purpose and security through diversity, all potential important things: (1) to identify, optimize and protect conventional and water sources can be taken into account, thereby maximizing end use and unconventional sources of water—including surface and groundwater, rain- system efficiency (Jacobsen et al. 2013). As part of their water security strat- water, treated wastewater, and seawater (World Bank 2018a; UN Water 2020); egy, cities and water utilities can become the stewards of their upstream and (2) to identify polluting sources and optimize wastewater interventions and downstream watersheds, whether through catchment management, lobbying investments, including nature-based solutions (Browder et al. 2019), in view efforts, or other means (see Outcome 3. Action 1 and 2). SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 22 Box 3.1 Applying circular economy principles in Chennai, India To protect against the vagaries of nature, build resilience, and increase water availability, the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) in Chennai, India, embarked on several projects and investments to CMWSSB INDUSTRIAL USER diversify water supply and to become more circular and resilient to droughts. Chennai was the first city in India to mandate rainwater harvesting. CMWSSB is also the only utility in India with two large-scale desalination plants and the first to reuse 10 percent of collected wastewater, with plans to achieve a reuse rate Waste- Treated water Wastewater of 75 percent. Since 2005, CMWSSB has been implementing several projects to treat and reuse wastewater for several purposes. As part of this effort, CMWSSB Chennai Wastewater Tertiary Treatment sells treated wastewater to industrial users and with the additional revenues, Treatment Plant it can cover all operating and maintenance costs (see figure on the right). The capital investment in the reuse project has been recovered in less than five years. CMWSSB also retrofitted seven of its wastewater treatment plants to recover energy from wastewater and to supply more than 50 percent of the energy needs of all the plants, saving on energy costs and helping sustain operations financially. Industry Long-Term Purchase The energy generation investment had a payback period of 2.8 years. CMWSSB Agreement is also investing in indirect potable reuse and is exploring the possibility of selling most of the biosolids generated in the wastewater treatment plants as manure for Source: World Bank 2021a. agricultural use. Read the full case study here. Note: CMWSSB = Chennai Metropolitan Water Supply and Sewerage Board. Integrated water storage can help diversify supply sources and shift (ecosystem functions; flood and drought protection) (GWP and IWMI 2021). resource availability across time to help navigate future uncertainties. An integrated water storage plan with multiple storage solutions can also be There are different types of water storage (natural, nature-based, and gray more flexible and adaptive to external shocks. infrastructure) each with different characteristics. All types of storage should be considered and combined as part of an integrated, codependent storage Rainwater harvesting should be considered as a valuable complementary system to hedge against potential risks and increase the resiliency of the sys- intervention to enhance water security. Rainwater can be collected and tem (GWP and IWMI 2021). In the face of shifting rainfall patterns and growing stored in tanks in private and public buildings or in private homes and har- uncertainty, integrated water storage will be critical to guarantee numerous nessed for domestic use (for example, for toilet flushing) and irrigation (World water-related services (such as water supply for households, industries, Bank 2020b). It can be stored in reservoirs or used to recharge groundwater irrigation, and energy security) and to manage water resources to protect aquifers for use in times of scarcity (see Outcome 3. Action 3). Rainwater har- communities, including the most vulnerable groups, and the environment vesting can be part of an adaptation strategy, providing a way to store water SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 23 in the face of growing variability in rainfall (UNEP 2019), and to help with flood Existing water and wastewater treatment plants should be used efficiently management in cities. Water utilities can play a role in rainwater harvesting and effectively. This seems obvious, but too often valuable and costly by providing equipment, technical support, installation, and maintenance. infrastructure is not used to its fullest potential. For example, in water and Rainwater should be included as part of every city’s water balance. wastewater treatment plants, international experience and advances in oper- ational efficiency have shown that the actual treatment capacity of certain Managing stormwater adequately is key to capturing the potential of this plant processes is greater than the nominal capacity foreseen in the original valuable resource. Urban development is usually done in a way that it neg- design. Utilities often assume that the real capacity of all plant processes atively affects the permeability of surfaces, thereby amplifying stormwater is equal to the nominal one and, when more capacity is needed, they tend runoff and reducing groundwater recharge (World Bank 2018a). Rapid urban- to “mirror” the plant without taking the real capacity of each plant process ization often brings about informal settlements in areas with high flood risk, into account. This results in underutilization of the potential capacity and such as floodplains and riverbanks (World Bank 2019c). Stormwater run-off overexpansion (and depreciation) of the existing infrastructure, with its high can also carry sediments, nutrients, chemicals, and other pollutants that can capital costs. Analysis or audits of existing treatment plants can reveal excess affect the quality of water sources. As urban population grows and climate capacity in some treatment processes (Nolasco, Stephenson, and DeAngelis change intensifies the frequency and intensity of heavy rains, cities need 1994; Environment Canada 2006). Armed with that knowledge, expansion can to adapt and prepare for these events to protect their inhabitants and the focus first on processes that present a bottleneck, thus yielding considerable ecosystem. At the same time, stormwater presents quality characteristics savings (box 3.2). Optimizing the performance of conventional wastewater different from those of wastewater and usually requires less treatment before treatment also makes it possible to postpone the need for immediate invest- being fit for reuse. In water scarce cities, especially, managing stormwater ment in physical expansion of facilities or in tertiary treatment systems; hence goes beyond flood protection, since rainwater can be a powerful resource (as resources can be reallocated to other purposes, such as the expansion of the noted in the discussion on rainwater harvesting above). Therefore, managing water supply and sewerage networks. Evaluating existing infrastructure and stormwater offers opportunities for cities to capture these resources through utilizing modern design methods (e.g., dynamic simulation) can maximize the aquifer infiltration and other methods, closing the circle from flood mitiga- use of existing infrastructure and enhance its sustainability, thereby avoiding tion to resource utilization (World Bank 2018a). In flood prone cities, it is also unnecessary infrastructure expansions that waste valuable resources, raise important that stormwater be managed as part of an integrated approach to costs, and enlarge the carbon footprint. Process evaluation techniques are managing flood risks (Jha, Bloch, and Lamond 2012) and combining gray with not necessarily complex or expensive. Rodriguez et al. (2020) and World Bank green infrastructure (see Outcome 3. Action 1). (2019a) further explore this topic. This principle can be applied to all water infrastructure. For example, in Action 2. Maximize the use of existing infrastructure stormwater-retention infrastructure, existing infrastructure can be optimized instead of adding new storage capacity. Data-driven technologies such as Infrastructure already in place is a valuable resource. Rather than building continuous monitoring and adaptive control can enable the optimization new infrastructure, existing or damaged infrastructure can be rehabilitated (Garder 2019). By combining weather data, data on water levels in holding to function as it did in its original design. Infrastructure can be retrofitted or basins, and smart control valves, it becomes possible to plan for, observe, and optimized to increase the returns on the initial investment, provide additional respond to storm events predictively, avoiding the need for additional capac- services, or maximize service delivery without making costly investments. ity. Similarly, assessing rainfall characteristics and hydrological conditions at the catchment level can help determine whether upstream actions might SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 24 ture and lower-than-expected revenues. Low household connection rates Box 3.2 Maximizing the use of existing infrastructure: the can adversely affect the performance of treatment facilities, both from oper- case of Buenos Aires and Sāo Paolo. ational and financial perspective, reducing plant efficiency and returns on investments. A recent report by the World Bank “Connecting the unconnected” (Kennedy-Walker et al. 2020) has studied why so many households remain Maximizing the use of the existing infrastructure in Buenos Aires, Argentina. unconnected and shares global best practices in sewerage connection pro- AySa, the water and wastewater utility in Buenos Aires, was planning to grams. One key message is the importance of engaging the community from expand its wastewater treatment plants in order to increase capacity. But inception through operation and management. For example, local coopera- the application of process audit techniques allowed the utility to find ways to tives can be employed to connect households. Ensuring the connectivity of all exploit the full potential of its existing facilities, resulting in cancellation of the households is not only essential for the efficient and optimal use of existing expansion plans and savings of USD 150 million in capital expenditures. infrastructure but also crucial to ensure that water supply and sanitation ser- vices are inclusive, deliver satisfactory water quality, and are sustainable. Optimization of existing wastewater treatment plants in Sāo Paolo, Brazil. In 2019, the World Bank’s 2030 Water Resources Group for Brazil, in partnership with the utility’s metropolitan sewage unit, began implementation of a Action 3. Plan and invest for climate and nonclimate uncertainties program to optimize the performance of four major wastewater treatment plants. Instead of investing in expanding or building new plants to increase A circular approach promoting efficiency and sustainability should also capacity, the program is conducting a series of audits to define priority focus on increasing resilience at the urban level. As cities grow rapidly and actions and investments to eliminate bottlenecks and maximize the efficiency climate change affects the availability and distribution of water resources, of the treatment process at each plant. Optimization of the plants will meeting urban water demand will become ever more difficult and energy allow the utility to postpone investments in tertiary treatment and reduce intensive. These entwined problems make it harder and harder for utilities investments in physical expansion. Preliminary results show that the program and municipalities to provide services, ensure adequate resources (food, will result in enormous savings for the utility, SABESP. Read the full case study water, energy), protect public health, and preserve the environment. Careful here. planning promotes long-term water security and resilience to climate and nonclimate uncertainties and can mitigate some of these risks. Source: World Bank 2019a, 2021b. The traditional approaches to planning, design, and investment are not suited for addressing the growing challenges posed by climate change risks be more cost-effective in managing flows into an urban area (depending on and threats to public health. In the traditional predict-then-act approach, flood characteristics). Nature-based solutions such as groundwater or aquifer decision makers attempt to predict the future and select interventions and water storage should also be considered as ways to maximize the value of investments to produce the desired outcomes under the chosen scenario. existing gray infrastructure. In most cases, the portfolio of investments is compiled by applying criteria such as cost effectiveness, cost minimization, cost-benefit ratios, or maximi- Exploiting the full potential of existing infrastructure also means connecting zation of net present value. But the future is highly uncertain and cannot be all households originally included in its design. Failing to achieve full water predicted, and a failed prediction generally leads to a portfolio of inefficient and sewerage connections leads to the underutilization of water infrastruc- investments, unnecessary projects (stranded assets), a high opportunity SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 25 This has fueled a paradigm shift to bottom-up, flexible, and robust deci- Box 3.3 Improving the resilience of urban water supply in sion-making approaches. Analytical approaches have been developed Mexico (Garcia et al. 2014; Ray and Brown 2015; World Bank 2018b; Brown et al. 2020) The Cutzamala Water System, which carries water from the Balsas basin to to examine the intrinsic characteristics of a water system or project and the Valley of Mexico and Mexico City (a distance of 126 kilometers and an describe is in terms of exposure, sensitivity, and capacity to adapt to and elevation of 1,200 meters) was assessed to improve its resiliency. First, trust withstand stress. These approaches can be broken down into three phases: was established among stakeholders and users while coming to understand (1) know and assess the characteristics of the existing system; (2) assess the the physics of the system, its operation, its benefits, and the precedents for sensitivity of that system to a wide range of future scenarios characterized emergency response. Then, as a simulation model was developed and tested, by uncertainty, identifying the most vulnerable parts of the system and the the potential for increasing the reliable yield through reservoir reoperation specific attributes of those vulnerabilities; and (3) choose actions centered on was discovered. New “rule curves” (how to operate the dams) for El Bosque, robust and flexible strategies and examine the trade-offs involved in meeting Valle de Bravo and Villa Victoria reservoirs were derived by maximizing the the agreed objectives under the scenarios identified. Box 3.3 offers an exam- reliable yield of the existing system without additional investments. Still, very ple of this process. small changes in precipitation and temperature were found to cause the system to perform unsatisfactorily. These bottom-up approaches can analyze the impact on systems of a range of risks and uncertainties such as climate change, population dynamics, This suggested the need to evaluate options to improve the system’s pandemics, or economic conditions. In these approaches, the level of performance. Accordingly, the performance of all investment combinations complexity, as well as the resources needed to make decisions are scaled relative to the current performance of the system was assessed. The system and adjusted according to the unique characteristics of a project and other was analyzed considering its robustness (meeting the target yield across relevant factors, as well as the issues and decisions that may be raised by a range of climate scenarios) and its resilience (or recovery) relative stakeholders at each step in the process (Ray 2015). By enabling diagnosis to current operations and optimized operations. The result of the multi- of the potential impacts of climate and other variables on a water project, dimensional analysis showed that large capital investments do not yield plan, or strategy, this approach brings to the surface ways to reduce the large performance payoffs in isolation. Additionally, while some investments effect of stressors on the system. Often, it permits water planners to assess may exhibit similar yields and costs, they may differ in their ability to improve the chances of success or failure of a specific application under current or recovery after failure and robustness to future climate conditions plausible future conditions. From that point, water managers can propose modifications and gauge the resulting response of the system to the stress- Based on these evaluations, the government will decide on potential ors. At this stage, decision-makers and stakeholders, through an inclusive investments to make the Cutzamala Water System more resilient. process, should be able to formulate and design more cost-effective, resilient, and robust solutions for the application. This method also allows for more Source: World Bank 2017. flexible solutions under future scenarios. For example, a new water supply or wastewater treatment facility can be built in a modular way, so that capacity can be added later as demand increases. The World Bank report “Building cost, and unmet goals for the water system. Furthermore, “predict then act” the Resilience of WSS Utilities to Climate Change and Other Threats: A Road does not explicitly assess social equity, environmental considerations, or the Map” offers guidance on how to use a bottom-up approach to build resilient impacts of climate change. water supply and sanitation utilities (World Bank 2018b). The “Resilient Water SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 26 water systems was improved, reducing losses in the process (by optimizing Box 3.4 Improving Resiliency, Sustainability and Efficiency in operations). Uruguay´s National Water Supply and Sanitation Company With support from the World Bank, Uruguay’s National Water Supply and 3.3.2 Actions to design out waste and pollution Sanitation Company (OSE) improved resilience, efficiency, management capacity, and the reliability of its water supply and sanitation services. Under This outcome depends on three actions: (1) being energy efficient and using the project, the reliability and resilience of water supply and sanitation renewable energy, (2) optimizing operations, and (3) recovering resources. systems were improved by rebuilding two water treatment plants to protect These actions are detailed below. against periodic floods and by enhancing the water intake at a third plant by increasing redundancy and incorporating preventive features into the existing system. These interventions have benefited around 433,900 households. Action 1. Be energy efficient and use renewable energy The project also focused on improving energy efficiency and reducing non- Because energy is often the costliest component of water supply and san- revenue water, which led to cumulative savings of 89.3 million cubic meters of itation operations, energy efficiency and renewable energy serve both to water and energy savings of nearly 26,250 megawatt hours over the lifetime reduce emissions of greenhouse gases (GHGs) and strengthen financial of the project. Moreover, 19 water safety plans were developed, responding performance. Electricity costs for water abstraction, production, distribution, to the government’s innovative regulatory requirement that utilities develop and treatment range from 33 percent to 82 percent of nonlabor operating water safety plans for each water supply system OSE operates. An asset costs of water supply and sanitation utilities (Limaye and Welsien 2019). And management system was developed, as well as a prototype for biosolid rising energy costs have direct implications for service affordability, sustain- drying and a process for applying biosolids to fodder crops. OSE also ability, and financing of water supply and sanitation services (WWAP 2014). implemented a logistics management model and quality management Energy costs are tied to the type of water source, transport distance, and software while building operational knowledge, innovation management treatment standards (Lackey and Fillmore 2017). At the same time, energy is capacity, and internal communications. The utility now incorporates risk the largest controllable operational expenditure for most water supply and management in its daily operations. Read more about this project here. wastewater utilities. Making these utilities more efficient, or even transforming them into energy producers (of renewable sources), are some of the best Source: World Bank 2020d. ways to manage and reduce operational costs, hedge against fluctuations in energy prices, ensure long-term operational sustainability and increase the resilience of water systems. These benefits can be achieved while curtailing Infrastructure Design Brief” (World Bank 2020c) guides users on how resilience waste, curbing GHG emissions, and advancing climate goals. Moreover, ener- can be engineered into the design of projects. gy-efficient facilities often reduce water losses, a double win for the utility. Freshwater resilience needs to be quantified, as it is vital in urban settings. For most urban water supply and sanitation utilities, investments in energy Mainstreaming resilience in the planning and prioritization of investments is efficiency generate the highest returns. Each utility faces unique energy a condition for mitigating the vulnerabilities of urban water systems to shock challenges and audits can ascertain the most appropriate solutions. Usually, and stress. Box 3.4 illustrates how the resilience (and efficiency) of Uruguay’s energy costs are lowered through measures that address energy efficiency SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 27 and load management. Energy efficiency measures include improving the operation of pumping systems (such as replacing inefficient pumps, using Box 3.5 Improving energy efficiency, reducing energy costs, smart pumps, converting to gravity-fed systems and upgrading mainte- and saving water. The cases of Mexico and Bosnia and nance), implementing water loss management technologies to detect and Herzegovina. reduce leaks and manage pressure, boosting the efficiency of water and wastewater treatment plants, and implementing other innovations such as The example of Monclova, Mexico. With support from the World Bank, the supervisory control and data acquisition (SCADA) software. Common and city of Monclova optimized its water distribution network by changing zoning readily available technical efficiency measures can cut energy consumption patterns; regulating water pressure and flows with hydraulic models; creating by 10–30 percent, with payback periods as short as a year (ESMAP 2012). Load network sectors; addressing non-revenue water (detecting and repairing management is usually done by shifting pumping operations from peak to leaks); installing variable speed drives; improving pumping efficiency off-peak periods. In most countries, peak electricity tariffs are much higher by introducing more energy-efficient pumps; and optimizing pumping than off-peak tariffs. Therefore shifting pumping operations can bring major operational schedules. The project boosted operations and water supply cost reductions because they consume 70 to 80 percent of a utility’s elec- from 10 hours a day to 24. Water flow and pressure were improved so that tricity use (Limaye and Welsien 2019). When utilities select and scale their an additional 40,000 customers gained access to water, while total energy treatment processes, they need to take such considerations into account at consumed and non-revenue water dropped. Monclova saw energy savings the design stage. Investments in energy efficiency and recovery activities of 4.75 million kWh (a 27 percent reduction) and water savings of 1.94 million should be based on analyses of the life-cycle cost, because investments cubic meters, resulting in annual cost savings of USD 380,000. The utility’s that deliver over the long term will have a higher rate of return (Lackey and greater operational efficiency increased revenues that repaid the investment Fillmore 2017). Moreover, energy efficiency measures tend to be associated in 1.9 years. Read the full case study here. with water loss reduction—a win-win (box 3.5). A recent guidance note by the World Bank’s initiative “Mainstreaming Energy Efficiency Investments in Urban The example of Mostar, Bosnia and Herzegovina. With support from the World Water and Wastewater Utilities” (Limaye and Welsien, 2019) provides further Bank, the town reduced its energy use by 40 percent with pump upgrades details on the typical energy efficiency and load management measures, how and replacements, more gravity-fed water, and improved water-leakage to identify, implement, and finance them, and a road map for mainstreaming detection and repairs, reducing energy consumption by 40 percent, from 9.4 energy efficiency in water sector infrastructure projects. megawatt-hours in 2001 to 5.6 megawatt hours in 2004. These energy savings have brought annual savings of USD 128,400 for the town. Read the full case In combination with energy efficient measures, water supply and sanitation study here. utilities can also become energy producers and achieve energy neutrality or Source: ESMAP 2010, 2011. even generate a surplus of energy to be sold to the grid. Worldwide, the water sector’s electricity consumption is around 4 percent of total global electric- ity consumption (IEA 2016). In some countries, water supply and sanitation utilities are the most intensive energy consumers. By 2040, the sector’s con- For example, most wastewater treatment plants generate biogas, which sumption could rise by 80 percent (IEA 2020). To minimize the sector’s impact can be used to produce electricity and heat on-site to meet some of the on the environment, mitigate climate change, and become more resilient to plant’s energy needs (see Outcome 2. Action 3, and Rodriguez et al. 2020). energy price fluctuation, utilities should transition to renewable energy. The Co-digestion—where an external waste source is injected directly into the good news is that renewable energy can be recovered in water streams. anaerobic digesters—could increase biogas production and meet the entire SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 28 energy requirements of a plant (Rodriguez et al. 2020; and box 3.6). Thermal Box 3.6 Achieving energy neutrality in a wastewater energy from sewerage can be harnessed to heat offices and other buildings. treatment plant with co-digestion in Ridgewood, United Other World Bank reports (Vazquez and Buchauer 2014; Lackey and Fillmore States. 2017) offer further guidance on wastewater and energy generation, keying them to the size of treatment plants. The wastewater treatment plant in the Village of Ridgewood, New Jersey (United States) was the largest energy consumer of the municipality, Another less-explored option is the installation of micro-hydro turbines in costing it more than USD 250,000/year for electricity. Ridgewood leveraged the water network to generate electricity (McNabola et al. 2014; Veolia 2020). the potential of resource recovery and, under a public private partnership Some municipalities are also installing solar photovoltaic (PV) on the land of agreement, retrofitted its wastewater treatment plant for co-digestion, their treatment facilities (TPO Magazine 2011) or using wind turbines to lower producing enough biogas to meet the plant’s electricity needs. Ridgewood electricity costs while reducing their carbon footprint. Floating solar PV can be Green, the private operator of the co-generation facility, supplied all of the placed in large reservoirs. This type of energy projects is usually done through upfront capital investments, with minimum risk for the village of Ridgewood. a third-party financing arrangement, where a private company finances, The village purchases the electricity generated from biogas by Ridgewood builds, and operates the energy-generation facility and sells the electricity Green at below-market prices under a power purchase agreement. to the municipality below market price, under a power purchase agreement Ridgewood Green obtains a return on its investment through a revenue model (TPO Magazine 2011; Box 3.6). Using renewable energy also lowers GHG emis- that leverages proceeds by (1) selling electricity to Ridgewood; (2) offering its sions and allows the utilities to benefit from carbon credits, renewable energy renewable energy certificates to 3Degrees, a leader in the renewable energy certificates, and other forms of climate financing (such as green bonds). In marketplace under a medium-term agreement; and (3) collecting tipping short, energy interventions in the water sector can also help countries achieve fees for the organic matter collected for the anaerobic digesters to produce their climate goals. biogas and generate electricity. Read the full case study here. Action 2. Optimize operations RIDGEWOOD WWTP Wastewater Treatment Co-digestion operated Key to circular economy are operations optimized for efficiency, reliability, Plant operated by the by private company and performance. Poorly operated utilities jeopardize the sustainability of any village of Ridgewood Ridgewood Green Vegetables, other WICER solutions that may be deployed. But because performance issues animal fat, oil Wastewater Sludge and grease are complex, this topic has been studied in depth. The Utility Turnaround Framework (Soppe, Janson, and Piantini 2018) is one of many World Bank reports offering guidance for poorly performing water supply and sanitation Electricity Fee on collecting utilities. It identifies five elements that are critical to sound management and performance: technical operations, commercial operations, human resources Long-Term Purchase Agreement management, organization and strategy, and financial management. The Utility of the Future Framework (Lombana Cordoba et al. 2021) builds on the Source: World Bank 2018c. Utility Turnaround Framework. Its methodology can help utilities improve per- formance and provide high-quality services in a highly efficient manner while SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 29 also being innovative, inclusive, market- and customer-oriented, and resilient. than increasing supply (World Bank 2016d). NRW management helps utilities expand and improve service, boost their financial performance, lower energy Most utilities, especially in low- and middle-income countries, need to consumption, and mitigate climate change while becoming more sustainable reduce NRW. On average, water utilities lose a third of the water they spend (box 3.7). The science behind, and the benefits of, reducing water losses is so much money abstracting, treating, and supplying. In some cities, NRW well known and extensively documented (Farley 2001; Farley and Trow 2003; rates can reach 80 percent. As the potential for developing new sources of Liemberger and Farley 2005; Farley et al. 2008; WSP 2008, 2009; Liemberger water diminishes, water must be used efficiently to meet future demand. 2010; Frauendorfer and Liemberger 2010). But these benefits often remain Given the challenges in the sector, and in line with circular economy, there is unrealized because water service providers face massive political, financial, little benefit in investing in new water-supply sources if the current network and technical hurdles. Two reports by the World Bank (Kingdom et al. 2006; system has a high levels of NRW. Moreover, managing NRW is often cheaper PPIAF 2016) explore ways to tackle NRW, among them performance-based Box 3.7 Two examples of optimizing operations in water utilities optimal use of its limited water resources, the utility avoided the need for huge investments to increase its production capacity. Read the full case study here. Reducing non-revenue water (NRW) and increasing energy efficiency in Tirta Tugu, the municipal utility of Malang in Indonesia. In 2009, Tirta Tugu’s NRW Improving operational efficiency and reducing NRW in Phnom Penh, Cambodia. rate was 42 percent, and the utility was able to serve less than 60 percent of In the early 1990s, the Phnom Penh Water Supply Authority (PPWSA), was a poor- the population of Malang Municipality. By 2019, Tirta Tugu successfully cut its performing utility. It supplied water intermittently to just 25 percent of the city’s NRW rate to 16 percent and became able to supply more than 95 percent of the residents. Its treatment plants operated at 45 percent of their installed capacity, population. The utility managed to improve its operational efficiency through the while revenue from tariffs covered only half of operating expenses. The NRW rate establishment of district meter areas, pressure management using pressure- was as high as 72 percent because of leaking pipes, low collection rates, and reducing valves, active leakage control, and innovative technology (for example, illegal connections across the city. In 1993 the government introduced a utility control instruments and supervisory control and data acquisition systems). Tirta improvement program. After bringing NRW down to 6.9 percent by 2013, PPWSA Tugu also improved energy efficiency through asset management, particularly is now a world leader in efficiency, supplying water to 390,000 connections in the for mechanical and electrical equipment. The utility installed capacitor banks in city, or 97 percent of the population of Phnom Penh. The drop in NRW from 1993 the main distribution panel and performed regular energy audits of all pumping to 2013 produced savings of USD 150 million in deferred investment and USD 18 stations. A dedicated team implemented the NRW reduction program and million in income. The stanching of water losses in the system has made PPWSA engaged all departments across the utility. To strengthen employee performance, more resilient, as most of the water produced now reaches customers. Because it allocated an adequate budget for in-house training programs. With capital Cambodia contends with frequent and prolonged droughts brought about by spending ascribable to NRW averaging USD 0.85 million per year, Tirta Tugu climate change, efficient management of water resources is crucial, especially gained additional USD 2.5 million in annual revenue. Capital spending related to as PPWSA relies on only one source of water—the Mekong River. Read the full case energy inefficiencies were USD 0.145 million in 2011. By reducing its energy costs study here. by 21 percent, Tirta Tugu saved USD 0.57 million per year. Moreover, by making Source: World Bank 2021c, 2021d. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 30 contracts. The World Bank has also entered into a partnership with the tation operators to identify opportunities to recover resources that are being International Water Association raising awareness about NRW, increasing underutilized or wasted at every phase of the water cycle. Ideally, a circular recourse to performance-based contracts, streamlining the preparation of system is designed in a way that no resources are wasted. The recovered such contracts, and supporting their implementation in developing countries resources can provide an additional revenue stream for the utility or reduce (World Bank 2016d). NRW interventions are usually done together with energy the costs of operation and maintenance, making the utility more financially efficiency programs (box 3.5 and box 3.7) and environmentally sustainable (see box 3.8 and Annex A). Resource recovery can be done at different scales and may include centralized and Optimizing the operation of water and wastewater treatment facilities is decentralized solutions. The right solution depends on the context (Andersson equally important and can generate multiple benefits—notably greater et al. 2016; WWAP 2017; Chrispim, Scholz, and Nolasco 2020). The World Bank’s energy efficiency and cuts in the resources required to achieve the same initiative “Wastewater: from waste to resource” published a report (Rodriguez output, both of which lower operating costs. The first step is to plan and et al. 2020) that explores the opportunities, market potential, and challenges design treatment facilities correctly, with circular economy and resource to be overcome to recover resources from wastewater. WWAP (2017) also recovery in mind. This implies projecting effluents accurately and selecting offers extensive guidance on recovering resources from wastewater. In fact, the best treatment processes, taking a phased approach when feasible to wastewater treatment plants (WWTPs) should be renamed as water resource match local conditions and regulations. Rather than focusing on initial capital recovery facilities (WRRFs), a term coined by the US (United States) Water costs, utilities need to consider the costs of long-term operation and main- Environment Federation. WRRFs can directly contribute to a circular economy tenance (see World Bank 2019a and box 3.15). Next, plant operations should by producing clean water, nutrients, renewable energy, and other valuable be optimized with respect to treatment options and energy efficiency (EPA, bio-based materials from wastewater (WEF, 2020). 1998; WEF 2016). Comprehensive audits (Environment Canada 2006) identify measures that could mitigate or resolve inefficiencies through small-scale Wastewater treatment for reuse is one solution to the world’s water scarcity construction, automation using SCADA, and real-time monitoring using sen- problems. Besides recovering water being wasted through the supply system sors and actuators for variable conditions. Investments to optimize operations (reducing NRW), wastewater can be treated and reused for multiple pur- can be recovered quickly due to the savings in energy and chemical costs poses. If planned with reuse in mind, wastewater can be treated to different and other operating savings such as effluent and discharge taxes and fees quality levels and adapted to the requirements of each potential end user (a (DHI n.d.). Using less chemicals to achieve the same treatment levels also concept known as “fit for purpose”). Wastewater can be also sold untreated reduces the environmental footprint of the treatment plants. Moreover, opti- or partially treated, allowing the final user to treat the water to the desired mizing operations often increases treatment capacity, resulting in additional standard (as in the case of Chennai, India - box 3.1). Treated wastewater can savings due to postponed investments (see section 3.3.1, Action 2). Finally, be used in industrial processes (box 3.9, box 3.13, World Bank 2018e); to cool energy efficiency measures (discussed in the previous section) should also be power plants (box 3.8); irrigate crops (World Bank 2018f), public gardens, and considered when optimizing operations. parks; recharge aquifers (box 3.15); maintain environmental flows and restore ecosystems (box 3.9); or even to provide drinking water (directly or indirectly (box 3.1)). Untreated wastewater is already being used in many parts of the Action 3. Recover resources world for irrigation purposes, with negative health and environmental con- sequences. Treating it for reuse avoids these negative consequences and Resources can be recovered over the entire water cycle. Understanding the frees scarce freshwater resources for other uses or for conservation. If sold, flow of resources in and out of their systems allows water supply and sani- treated wastewater generates more revenue for the operator. World Bank SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 31 Box 3.8 Reusing treated wastewater for industrial purposes Box 3.9 Reusing treated wastewater for industrial purposes and to restore the aquifer as part of an integrated and restoration of ecosystems in Lingyuan City, China. wastewater management plan in San Luis Potosi, Mexico. To meet growing water demand resulting from rapid economic development New water-reuse regulations and a creative project contract incentivized and urbanization, the municipal government of Lingyuan City in China wastewater reuse in San Luis Potosi, Mexico. Instead of using fresh water, a identified wastewater collection, treatment, and reuse as an opportunity to power plant uses treated effluent from the nearby wastewater treatment address the city’s water scarcity and pollution problems while promoting plant (Tenorio) in its cooling towers. This wastewater is 33 percent cheaper circular economy principles. With the support of the World Bank and for the power plant than groundwater and has resulted in savings of $18 a supportive regulatory and policy environment, the city upgraded its million for the power utility over six years. For the water utility, the additional wastewater treatment plant, increased the percentage of connected revenue covers all operation and maintenance costs. The remaining treated households to 90 percent, and built separate drainage systems for wastewater is used for agricultural purposes and to restore nearby wetlands. stormwater and wastewater. The city now sells part of its treated wastewater Additionally, the scheme has reduced groundwater extractions by 48 million to industrial users, recovering operating costs and generating additional cubic meters in six years, restoring the aquifer. The extra revenue from water income for the municipality. The rest of the treated wastewater is used to reuse helped attract the private sector to partially fund the capital costs replenish an urban lake to restore urban biodiversity and maintain the shallow under a public-private partnership agreement. Read the full case study here. aquifer around the lake. The project has also resulted in the replenishment of the aquifer, since industries no longer extract water from it. Read the full case study here. Wastewater Wastewater PRIVATE OPERATOR San Luis Potosí Water reused for Secondary Treatment Tertiary Treatment Industry Argiculture Wastewater Treatment Plant Tenorio Wastewater is used for Treated Environmental Wastewater Enhancement Tenorio Tank Wetland Wastewater is used in the cooling towers River Urban Lake instead of Long-Term Purchase Agreement Thermal Power freshwater. 30-Year Consession long-term purchase Plant (CFE) Agreement LCB Lingyuan City agreement Note: CFE = Comisión Federal de Electricidad (Federal Electricity Commission) Government Source: World Bank 2018d. Source: World Bank 2021f. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 32 (2018a) discusses treated wastewater reuse, focusing on water-scarce cities. And IWA (2018) illustrates the wastewater challenge and reuse opportunity in Box 3.10 Achieving 150 percent self-sufficiency by eight cities across the globe, presenting a reuse roadmap. The World Health combining energy efficiency and energy generation Organization provides step-by-step guidelines to ensure the safe reuse measures in Aarhus, Denmark. of wastewater (WHO 2006). The World Bank is now collaborating with the International Finance Corporation on the “Re-Water” initiative, which aims to The water utility Aarhus Vand, Denmark, has implemented energy-saving scale up IFC’s engagement in the municipal water and wastewater sectors technologies at its Marselisborg wastewater treatment plant, including an and increase the number of bankable wastewater treatment and reuse proj- advanced SCADA control system, a new turbo compressor, and an optimized ects in emerging markets. fine-bubble aeration system. These innovations have reduced electricity consumption by 25 percent, or approximately 1 GWh/year. At the same The water cycle contains energy in different forms that can be harnessed time, energy production has been improved with the installation of new, and help cut operating costs and GHG emissions. Kinetic energy is found in energy-efficient biogas engines (combined heat and power), yielding a gain flowing water, while thermal and chemical energy is found in organic matter in electricity production of another 1 GWh/year. A new heat exchanger was found in wastewater. Microturbines deployed in the water system can produce installed with the aim of selling surplus heat to the district grid—approximately electricity. Thermal energy can be recovered from water and wastewater 2 GWh/year. Between 2015 and 2019, the Marselisborg wastewater treatment using existing heat exchangers (pumps) to heat and cool residential and plant produced an average of 9.6 MWh/year of energy and consumed other buildings. Organic matter in wastewater can be captured as sludge and an average of 6.4 MWh/year, equivalent to a net energy production of 150 converted into biogas through anaerobic processes. Recovered biogas can percent. Most of the installed technologies have had a payback time of less be upgraded to natural gas–quality and sold to cities as gas for heating and than five years. cooking (World Bank 2019b), as vehicle fuel, or as fuel for a power plant; or it Source: Aarhusvand 2020. can be burned on site to cogenerate electricity and heat for the treatment plant, improving its energy efficiency. The heat can be used in the digester to dry sludge, while the power can be used to meet the plant’s electricity needs (box 3.10) or sold to the grid. All these energy sources in the water cycle are land, as compost or fertilizer in agriculture, and as compost in gardens and sustainable and green. Recovering and using them to generate power and golf courses (IEA Bioenergy 2015). Using biosolids for a fit purpose instead of heat/cooling reduces GHG emissions and other air pollutants to the extent disposing of them in landfills is not only more environmentally sustainable they replace fossil fuels. In the process, they can qualify the plant for carbon but also lowers or eliminates transport and landfill costs for the water utility credits. Renewable energy generation and energy efficiency investments are while reducing GHG emissions. Nutrients such as phosphorous and nitrogen also explained in section 3.3.2, action 1. can also be extracted from wastewater to be used as fertilizer or for industrial processes (WWAP 2017; Waternet 2017, WEF 2020). Recycling and reusing Nutrients present in wastewater can be recovered and reused. Traditionally, essential nutrients in wastewater can lower the amount of fertilizer farmers sludge from wastewater treatment plants and fecal sludge from onsite san- must use, helping to mitigate water-quality issues, decreasing costs for itation solutions has been considered as a waste by-product to be disposed farmers (Damania et al. 2019), and cutting GHG emissions. Box 3.11 contains an of at the lowest possible cost. But biosolids (sludge treated to levels that example of resource recovery from wastewater and fecal sludge. permit its beneficial use) can be used for many purposes by virtue of their nutrient content. For example, biosolids can be used to recover degraded SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 33 2020). For example, sludge ash can be used in the construction industry to Box 3.11 Making the most out of wastewater and fecal make bricks or tiles or incorporated as raw material for cement (New Civil sludge. The case of Dakar, Senegal. Engineer 2019). There are also pilots to recover cellulose from wastewater. Underexploited resources like bioplastics, enzymes, metals, and minerals are With its Sahelian climate, Senegal faces hot, arid conditions, compounded by also present in wastewater, but more work is needed to make their reclama- variable rainfall and a changing climate that, without demand management, tion economically viable. On the supply side, limescale-forming deposits from have come to threaten water security. Water stress at the national level calcite could be extracted from drinking water. Calcite-free water would be has been intensified by droughts, floods, and threats to water quality. attractive to consumers, while extracted calcite could be used to make paper Meanwhile, Senegal’s economic growth depends on water-intensive sectors and plastic (Waternet 2020). The reuse of brine produced during desalination like agriculture, mining, and tourism. In the face of competition and water is also being explored, as it can become an environmental problem—and stress, the Office National de l’Assainissement du Sénégal (ONAS) has been opportunity—as desalination capacity accelerates (MIT News 2019). exploring several circular economy opportunities—and implementing some of them. Thanks to the co-location of wastewater treatment plants and fecal Separation of resources at the source offers opportunities to recover sludge treatment plants, ONAS has been able to recover resources that have resources more efficiently and at a lower cost. If the different wastewater led to (1) the sale and reuse of treated wastewater for irrigation purposes streams (urine, feces, graywater, rainwater, see figure 3.3) are kept separate, (horticulture) around the capital, Dakar; (2) the production of energy from then more specific (and usually simpler) treatment can be applied for reuse biogas, saving 25 percent of energy costs; and (3) the recovery and sale (Andersson et al. 2016). Resource recovery consists of separating all the valu- of treated, dried sludge to farmers and for green areas. All these generate able resources from wastewater. If those resources are already separated, revenue, making services more sustainable, reliable, and resilient. resource recovery becomes much simpler. For example, urine contains 88 percent of the nitrogen and 66 percent of the phosphorous found in human Source: World Bank 2021e. waste. It would be easier and more economical to recover these resources for use as fertilizer if urine were a separate waste stream (WWAP 2017). Graywater (from showering, washing, etc.) is usually less contaminated (compared with water with feces) and represents the larger volume of used water. Graywater Water and nutrient reuse can be combined to irrigate and fertilize simulta- usually requires less treatment to be reused than the combined wastewa- neously. In some circumstances, it is not only possible but also advantageous ter stream, making reuse more economical. There are low- and high-tech to reuse wastewater together with some of its organic matter, thereby solutions for source separation, but it is especially attractive in decentralized fertilizing and irrigating at the same time (Andersson et al. 2016). To be safe, solutions (WWAP 2017). A good example is the case of El Alto in Bolivia, where wastewater must be treated. But depending on the end use, wastewater may urine, feces and graywater are separated at the household level (Andersson require fewer treatment stages, lowering costs and leaving some of the nutri- et al. 2016). The urine is reused as liquid fertilizer, composted feces are reused ents in wastewater. For example, water-stabilization ponds offer a low-cost as solid fertilizer, and graywater is reused after treatment to replenish wet- treatment that can bring pathogen and pollutant loads to within acceptable lands and irrigate greenspaces. limits for irrigation (Andersson et al. 2016). The potential to recover and reuse other materials is growing. Although not as well explored, other resources can also be recovered from water (WEF SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 34 Figure 3.3 Waste separation and possible treatment and use options Action 1. Incorporate nature-based solutions Integrating nature into mainstream infrastructure systems can lower costs Substances Treatment Utilization and contribute to more sustainable and resilient water systems while pro- tecting ecosystems and mitigating climate change. Nature-based solutions are “actions to protect, sustainably manage, and restore natural or modified ecosystems that address societal challenges effectively and adaptively, Hygienization by storage or drying Liquid or dry fertilizer simultaneously providing human well-being and biodiversity benefits” (IUCN Urine 2016). Natural systems have long been recognized for their ability to deliver or contribute to core infrastructure services while delivering many local ecologi- cal and socioeconomic benefits (Chausson et al. 2020). Emerging technology Anaerobic digestion such as earth-based observations and advanced modeling make it even Biogas Drying Soil improvement more cost effective and easier to design and implement green infrastructure Composting Faeces (Browder et al. 2019). Combining green (natural) with gray (traditional) infra- structure offers an opportunity to deliver services at a lower cost while at the Constructed wetlands same time reducing risks related to extreme events, reducing pollution, pro- Gardening Irrigation tecting the ecosystems and contributing to the reduction of GHG emissions. Wastewater ponds groundwater recharge Graywater Biological treatment direct use Green infrastructure can boost infrastructure system resilience with its natural (shower, washing, ect) Membrane-technology adaptive and regenerative capacity (Browder et al. 2019). Green infrastruc- ture such as wetlands and forests act as carbon sinks, which can contribute toward climate goals if managed and protected correctly (Chausson et al. Filtration Water supply 2020; Seddon et al. 2021; Girardin et al. 2021). Biological treatment groundwater recharge Rainwater Even so, nature-based solutions are not always considered when planning or building new infrastructure, and their benefits are often overlooked—some- times because they are difficult to quantify. But sufficient evidence now exists Compositing Soil improvent Anaerobic digesting Biogas to prove that nature-based solutions can meet the infrastructure investment Organic waste gap in a cost-effective manner while benefiting local communities and the environment. For that reason it is crucial to assess and analyze their potential Source: WWAP 2017. when preparing new projects. Nature-based solutions need to be considered as a solution or comple- 3.3.3 Actions to preserve and regenerate natural systems mentary solution in all the WICER elements. Natural systems such as forests, floodplains, wetlands, urban parks, and soils can contribute to clean and This outcome requires three actions: (1) incorporating nature-based solutions; reliable water supply, protect against floods and droughts and help restore (2) restoring degraded land and watersheds; and (3) recharging and manag- degraded ecosystems while at the same time offsetting emissions of GHGs. ing aquifers. For example, urban wetlands, green roofs, and green areas can diminish the SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 35 risk of floods (see box 3.12 and Soz et al. 2016; World Bank 2019c; Oral et al. of ecosystem services in urban areas (Kisser et al. 2020). For example, con- 2020), mitigate air pollution, provide recreational and health benefits, and structed wetlands offer effective, reliable, robust, and low-cost wastewater help sequester carbon, contributing to climate goals (Seddon et al. 2021). treatment and nutrient recovery (Kisser et al. 2020). Protecting and restoring natural ecosystems in upper catchments can contribute to climate-change adaptation by protecting communities and In most cases, combining green infrastructure with traditional gray infrastruc- infrastructure from flooding and erosion, while also reducing costs for water ture—such as dams, levees, reservoirs, treatment systems, and pipes—can treatment, contributing to carbon sequestration, and protecting biodiversity provide the next generation of solutions that enhance system performance (Browder et al. 2019; Seddon et al. 2021). Rainwater harvesting and aquifer and better protect communities (table 3.1) (Browder et al. 2019). The mix of recharge can protect cities against droughts (Browder et al. 2019). Wetland green and gray solutions must be appropriate for a region’s socioeconomic and riparian ecosystems can provide wastewater and storm runoff treatment status, development challenges, and the ecological context. The World Bank that can reduce the costs of investment in wastewater treatment facilities report “Integrating Green and Gray : Creating Next Generation Infrastructure” (UNEP 2015), provided these ecosystems are healthy, the pollutant load (and (Browder et al. 2019) offers guidance to developing country service providers types of contaminants) in the effluent is regulated, and the ecosystem’s and their partners on how to integrate natural systems into their infrastructure capacity to assimilate pollution is not exceeded (WWAP 2017). Nature-based programs and provides examples of successful projects. solutions can also enhance or enable resource recovery and the restoration Action 2. Restore degraded land and watersheds Box 3.12 Conserving wetlands to enhance urban flood Wastewater needs to be treated, especially in heavily populated areas. control systems in Colombo, Sri Lanka. Currently most of the wastewater generated in the world is still released into the environment without treatment, polluting ecosystems and impacting In recent decades, rapid urbanization in the Colombo metropolitan area in Sri human health. The problem is compounded in densely populated areas. Lanka has caused degradation of the region’s wetlands, which are essential Ideally, reversing this dire situation would be done in an integrated way by for storing water during heavy rains. At the same time, climate change and exploring nature-based solutions in combination with wastewater treatments sea-level rise are exacerbating the impacts of the region’s vulnerability to plants, centralized and decentralized solutions, and interventions at the basin flooding. Stormwater-management strategies in the city had conventionally level that recover and reuse resources from wastewater. been “gray” based. The World Bank’s Metro Colombo Urban Development Project identified and implemented a mixture of green and gray infrastructure Prevention or reduction of pollution loads must occur at the source. to reduce flood risks, improve drainage, and create recreation opportunities Whenever possible, wastewater prevention and minimization should take in the metropolitan region. Urban wetlands and flood-retention parks priority over traditional end-of-pipe treatment (WWAP 2017). For example, complement the gray stormwater system by allowing for the slow infiltration regulations can prohibit or limit certain contaminants—like toxic chemicals of stormwater into the ground, decreasing the volume of water that moves that threaten human health and the environment—to keep them out of waste- through the gray system. water streams. Interventions to prevent pollution are usually much cheaper than reactive and remedial actions. Pollutant discharges to waterways need Source: Browder et al. 2019. to be reported and monitored so interventions can be properly designed. Economic instruments such as discharge fees could also be implemented SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 36 Table 3.1 How green and gray infrastructure can coexist Industrial discharges must be addressed. Inadequate legislation, enforce- ment, regulation, and monitoring of industrial discharges result in pollutants Gray infrastructure Examples of green infrastructure being discharged, untreated, into waterways or left to already overburdened Service components components and theit function wastewater treatment plants. In cities where industries generate copious amounts of wastewater, authorities must enforce programs for pretreatment Watersheds: Improve source water and control of industrial pollutants. These are essential for curtailing the risks quality and thereby reduce treatment requirements of chemical pollutants and ensuring the successful operation of wastewater Water Reservoirs, treatment treatment plants and effluent reuse irrigation schemes. Industries should supply and plants, pipe network either pay for treatment (in USD per kg treated, reflecting the true costs of sanitation Wetlands: Filter wastewater effluent and thereby reduce wastewater treatment cleanup) or reduce their discharges to set concentrations through in-house requirements treatment. In some cases, strict zero-discharge policies for industries could incentivize industrial reuse and circular economy solutions. Economic instru- Watersheds: Reduce sediment inflows ments can play a critical role in incentivizing the “polluter pays” principle. Reservoirs and power Hydropower and extend life of reservoirs and power Under the right conditions, leveraging the industrial sector could finance plants plants wastewater treatment and restoration projects (box 3.13). Mangrove forests: Decrease wave Coastal flood Embankments, Degraded land and watersheds can be restored using resources recovered energy and storm surges and thereby protection groynes, sluice gates reduce embankment requirements from wastewater. The nutrients, organic carbon, and water found in waste- water can be used to restore and remediate ecosystems. They can also Urban flood retention areas: Store bolster ecosystem services in ways that bring major benefits for economies Urban flood Strom drains, pumps, stormwater and thereby reduce drain and communities (WWAP 2017). Partially treated wastewater can be used to protection outfalls and pump requirements recharge depleted groundwater and aquifers with various beneficial end uses River floodplains: Store flood waters or to restore wetlands, lakes, and other watersheds. In fact, in water-scarce River flood Embankments, sluice areas, treated wastewater has even been used to create artificial lakes or and thereby reduce embankment protection gates, pump stations requirements wetlands and to ensure that natural wetlands maintain healthy water levels even during periods of drought (WWAP 2017). Biosolids can be used to restore Agriculture Barrages/dams, Agriculture soils: Increase soil water degraded land and to support reforestation. Treated wastewater allows envi- irrigation irrigation and storage capacity and reduce irrigation ronmental flows to be respected and maximized, ensuring that ecosystems and drainage drainage canals requirements are not adversely affected by water withdrawals or wastewater discharges, and that fisheries and other aquatic ecosystems thrive. Source: Browder et al. 2019. Urban expansion must preserve ecosystems and protect water resources. to control and reduce pollution (Blackman 2005). It is vital to understand the Permeable surfaces such as natural ground and green spaces need to be absorptive capacity of river streams so treatment plants can be designed included in city planning to abate urban runoff and flooding. Forested areas and sited to maximize treatment and the quality of water bodies. and wetlands absorb excessive “nutrient loads” that would otherwise enter streams and groundwater. By protecting these natural buffers, or creating SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 37 Box 3.13 A win-win partnership between a water utility and Natural capital is preserved, protected and restored, in recognition of its industry to treat wastewater and restore a river in Arequipa, full value. Protected watersheds and related ecosystems lower the costs of Peru providing services (for example, lowering treatment costs) and benefit people and their environment. Preserving and restoring natural capital makes eco- Cerro Verde, a mining company near Arequipa, Peru, was planning a large- nomic sense (see section 3.3.3, action 1). Box 3.14 describes how the State of scale expansion that required additional water supply. But increasing the Espirito Santo has implemented nature-based solutions to protect its water water supply would prove difficult in view of the region’s aridity and rising source. population. Meanwhile, the city’s insufficient wastewater treatment capacity was contributing to the increasing pollution of the Chili River. Box 3.14 Targeted green infrastructure for source-water After discussions with regional and local governments, development protection. The case of Espirito Santo, Brazil. agencies, and civil leaders, Cerro Verde and SEDAPAR, the municipal water utility, decided, under a PPP agreement, that the mining company would be responsible for designing, financing, building, and operating a wastewater After investing for several decades in traditional gray infrastructure to provide treatment plant to handle about 95 percent of the city’s wastewater. In potable water to its residents, the Greater Vitória Metropolitan Region in the exchange, Cerro Verde could use some of the treated water for its mining State of Espirito Santo, Brazil, was contending with erosion and sediment processes and discharge the rest into the river to be used downstream by pollution, which were spoiling the watershed. Working with the World Bank, farmers. the state identified nature-based upstream solutions. The Watershed Management and Restoration of Forest Cover project implemented a This win-win solution has allowed the mine to expand its operations, while payment-for-ecosystem services (PES) scheme. At the cost of USD 16.2 the municipality has saved money (building and operating the wastewater million, the project paid upstream landowners to reforest, conserve, restore, treatment plant would have cost the city more than USD 335 million). The and manage their land in ways that curbed erosion and kept sediment Chili River, meanwhile, has largely recovered, to the benefit of the city and its loads from being deposited into the watershed. The project also included a residents. Read the full case study here. USD 7.4 million pilot project to reduce the silt loads hampering operations of the water treatment plant. This is an example of a holistic approach Source: World Bank 2019d. that combined reforestation with better land management. The estimated economic benefits of these interventions range from USD 13 million to USD 18 million, with an internal rate of return ranging from 12.7 percent to 16.8 percent. them artificially, municipalities can shield waterways from potential pollutants Estimates indicate that the water utility, CESAN (Companhia Espírito Santense (Damania et al. 2019). Land-use policies must preserve forests, wetlands, de Saneamento), will save a total of R$ 15.5 million over 30 years in avoided and natural biomass—and create green spaces where needed—particularly costs for new filtering equipment and maintenance. Landowners benefit from near high-value waterways (Damania et al. 2019). These practices not only the PES, from regulatory compliance, and from higher income gained through make systems more resilient; they also help cities adapt to climate change. productive practices. The port of Vitória downstream avoids the need for Moreover, ecosystems that are protected and carefully managed can also costly new dredging operations. store carbon and help to mitigate climate change (Girardin et al. 2021). Source: Browder et al. 2019. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 38 Action 3. Recharge and manage aquifers marizes the North Gazan experience with a wastewater treatment plant that recovers and reuses treated wastewater to replenish the aquifer and irrigate Managing, recharging, and preserving aquifers properly is crucial for long- agricultural land in a water-scarce and conflictual environment. term water security and resilience because groundwater is more likely to be compatible with a variable and changing climate. Aquifers can store large volumes of water. They also react more slowly to changes in rainfall and temperature than does surface water. If managed well, aquifers can Box 3.15 Wastewater treatment to recharge aquifers and be resilient buffers during long periods of water stress (Clifton et al. 2010). reuse water in a context of water scarcity and conflict. The Complementing surface with groundwater makes the water supply system case of North Gaza. more resilient to variability and water scarcity, since aquifers respond to stress on a different time scale (World Bank 2018a). To manage aquifers Gaza is among the most water-stressed places in the world. Its main source correctly, utilities need to monitor their water levels; regulate and set limits of water is groundwater. With its rising population, Gaza and its wastewater on extraction rates; and ensure that aquifers are not polluted. A World Bank treatment plants were further strained when approximately 1.5 million cubic report “Water and Climate Change: Impacts on Groundwater Resources and meters of wastewater overflowed from an existing plant into the surrounding Adaptation Options” (Clifton et al. 2010) discusses the impacts of climate sand dunes, where it formed a 30-hectare lake. The wastewater eventually change on groundwater and adaptation options. seeped into the aquifer, exposing the population to waterborne diseases and to the threat of floods of sewage. In 2004, the North Gaza Emergency Recharged and restored, aquifers can become a sustainable source of water Sewage Treatment Project, supported by the World Bank, addressed these supply for cities. When developing an integrated approach to urban water problems through the construction of a plant that increased wastewater security, cities should always consider aquifers instead of looking for alterna- treatment capacity and then recovered and reused treated water to replenish tives. Given their potential to store large amounts of water, aquifer recharge the aquifer and irrigate agricultural land. The project depolluted the aquifer is an economical alternative compared to expanding water production and and improved sanitation services and health outcomes for residents. The surface storage infrastructure, or transporting water from distant reservoirs operating costs of this solution were too high, however, to achieve cost through massive conveyance infrastructure (World Bank 2018a). recovery, in part due to the high cost of electricity. In the end, this led to a complementary solution—now being implemented—using solar panels Managing aquifer recharge (including building infrastructure and/or mod- together with biogas to cover the project’s electricity needs. This case shows ifying the landscape to boost groundwater recharge) is one of the most that it is crucial to choose technologies suitable for the local conditions, and promising adaptation opportunities, especially in developing countries that the costs of operation and maintenance—and the capacity to cover (Clifton et al. 2010). Besides storing water for future use, aquifer recharge can them—are as important as capital costs, if not more so. Read the full case stabilize or recover groundwater, manage saline intrusion or land subsidence, study here. and enable reuse of wastewater or stormwater (Clifton et al. 2010). Moreover, aquifer recharge can be used as part of the nature-based solutions strategy Source: World Bank 2021g. because natural “soil passage”—such as riverbank filtration—can lower costs for treatment chemicals and energy (Sharma and Amy 2010). Box 3.15 sum- SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 39 3.4 CROSS-CUTTING ISSUES regulations (on water rights, discharge standards, and pollution charges) should foster investments in pollution control and the regeneration of natural The following four cross-cutting issues emerge as important factors in the systems. successful adoption of the WICER framework: (1) policy, institutions, and regu- lations; (2) demand management; (3) digitalization; and (4) inclusiveness. Institutional and regulatory capacity needs to be strengthened to enforce the regulatory frameworks and promote the adoption of circular economy approaches (Caffera 2011; Blackman 2018). Enforcement of regulations is Cross-cutting issue 1. An enabling policy, institutional, and regulatory (PIR) indispensable and can take place only with adequately resourced agen- environment is needed to achieve full circularity and resilience in urban cies, administrative procedures for sanctions, and monitoring programs. water. Coordination with other sectors is also vital, especially with large water users or potential users of recovered resources such as agriculture and industry. Clarity about institutional functions is a great help. So is clarity regarding Even when progress is made at the utility or city level, regulatory and policy incentives for collaboration within government—specifying with what sectors limitations may persist. For example, regulations should address resources and at which levels. The WICER framework can be used across sectors to recovered from wastewater. If they are nonexistent, lax, or prohibitive, munic- identify synergies and collaborations. The framework can also be used as part ipalities may not develop projects or create markets for byproducts (World of the PIR global initiative by the World Bank Water Global Practice. Bank 2019e; Rodriguez et al. 2020). If tariffs for freshwater or energy are too low, few entities will make efficient use of water, reuse treated wastewater, or generate energy in wastewater treatment plants. If wastewater discharge Cross-cutting issue 2. Demand management is integral to WICER fees or pollution charges are too low, or enforcement is lax, industries have no incentives to minimize water pollution. The principles of circular economy include not only minimizing waste and recovering resources but also avoiding the misuse of precious natural Water supply and sanitation utilities and cities cannot embark on this resources. The first aim should be to minimize water use. It is unsustainable challenge alone. An enabling environment must be created to provide the to invest and build infrastructure for water production and supply if water is right incentives to mainstream circular economy and resilience. Most of being wasted. Actions and policies to increase water supply need to be paired the case studies presented in this report showcase one or more aspects of with actions and policies that manage demand. Water conservation policies the WICER framework (see also Annex A). All stem either from strong govern- are usually implemented at the government level, and water supply and ment support or a favorable environment. As noted above, an enabling PIR sanitation utilities cannot directly control water demand. But they can encour- environment should encourage the use of recovered resources and enable age responsible water use with awareness-raising and communication a market for those resources. It should incentivize interventions in water and campaigns, monetary incentives, setting the right tariffs to recover full costs, energy efficiency and foster renewable energy and nature-based solutions, progressive subsidies, and new water meters, among other measures (World while protecting natural resources. An enabling environment should also use Bank 2018a). Namibia’s capital, Windhoek, has been implementing measures the right economic and policy instruments to set adequate tariffs and prices to become more resilient by diversifying supply, reusing wastewater, and so that circular alternatives can compete with traditional, linear alternatives, other means. As part of those efforts, the city has included constant media which frequently benefit from subsidies, externalities, and other market communication with customers to maintain a low per capita consumption distortions (Enriquez, Sánchez-Triana, and López 2021). Clear environmental and to raise awareness about local drought conditions (World Bank 2018a). SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 40 fact, digital solutions can be integrated in every aspect of the water cycle; as Water needs to be priced correctly, reflecting the local opportunity cost of such, they should be considered as an additional tool in every WICER action water use, when possible. An appropriate water tariff structure (which also to improve efficiency and sustainability. The uptake of digitalization, however, ensures affordability for the poor) incentivizes the efficient use of water and requires data collection and monitoring and changes in organizational cul- makes wastewater reuse financially sustainable. For example, it is important ture. Digitalization should therefore be seen as a journey, not an end in itself not to set the freshwater tariffs too low, especially for industries and busi- (IWA n.d.). nesses, so there are incentives to reuse treated wastewater. Reducing water consumption also reduces the amount of wastewater to be Cross-cutting issue 4. Inclusiveness—so all can reap the benefits of circular treated. By investing in water conservation measures, utilities can increase and resilient water systems water availability without having to build more infrastructure, saving the costs of water supply and treatment and wastewater treatment and disposal It is imperative that all WICER interventions be inclusive. Everyone must (WWAP 2017). benefit. Stakeholder discussions need to include every group, considering a range of solutions tailored to the realities of cities in developing countries. By focusing on service provision and its enabling environment, utilities and Cross-cutting issue 3. The potential of digitalization municipalities can avoid the trap of building infrastructure in isolation from social needs and realities (World Bank n.d.; Misra and Kingdom 2019). A fully Digital solutions can contribute to greater resilience and better water supply circular and resilient system should ensure that everyone has access to water and sanitation services. Digital solutions offer new ways to optimize, man- services and is included in resiliency plans. At the same time, many elements age, and conserve water. Worldwide, the water sector is embracing digital of WICER already contribute to more inclusive services. For example, if less solutions so it can better respond to customer demands and growing global water is wasted through NRW, more people can be given access to water, as pressures. Remote sensing, smart meters, big data, advanced simulation several of the case studies show. Moreover, recovered resources can offer tools, and artificial intelligence enable utilities to manage and optimize a an additional revenue stream, making the utility more financially sustainable diversified water-supply portfolio. Digital solutions also help extend and and allowing subsidies to be redirected where they are most needed. The key improve the quality of water resources, expand infrastructure life cycles, opti- issue (especially if public-private partnerships are involved) is to ensure that mize operations and maintenance, increase energy efficiency, reduce NRW, projects and contracts are well designed to address social needs. and help prepare for a changing environment or potential crisis (IWA n.d.). For example, hydrologic models paired with monitoring devices have allowed the water utility in Durban, South Africa, to optimize storage levels in dams 3.5 PROMOTING AN INTEGRATED APPROACH and reservoirs, protecting its customers from scarcity events (IWA n.d.). Digital TO CIRCULARITY solutions in water distribution networks can detect pipe bursts in real time, helping reduce NRW (IWA 2020). The incorporation of external data sets such As we have seen, the WICER framework is a useful tool for cities and utilities as weather and traffic data can help a utility adapt its operations to changing seeking to incorporate circularity into their plans, strategies, designs, and climate and demographics. Digital customer-engagement programs and operational practices. An integrated approach to circularity is facilitated by analytic tools improve customer service and increase revenue collection, the natural interconnectedness of a number of WICER elements. For example, for example, by allowing customers to pay through a mobile phone app. In reducing NRW generally improves energy efficiency. Nature-based solutions SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 41 can help recover resources and restore degraded lands and watersheds. Some of the examples in the report highlight how WICER actions have been implemented in coordinated fashion to tackle several problems at once. Cities and urban water supply and sanitation utilities can incorporate the WICER approach into master plans, strategies, and long-term investments. New projects are best designed and planned with circularity in mind to ensure that resources are not wasted. The WICER framework can also be used to engage other sectors, especially with potential end users such as agriculture and industry. Box 3.16 highlights some examples of water supply and sanitation utilities that have incorporated circular economy and resilience concepts into their business plans and strategies. Box 3.16 Two utilities that are taking an integrated approach to Águas de Portugal (AdP) seized the opportunity to carry out a paradigm shift circular economy principles by developing a strategic framework to become circular and resilient. The framework was developed through an open and inclusive internal dialogue Aguas Andinas of Chile and the biofactory concept. Aguas Andinas is involving everyone in the company. The process also engaged stakeholders from transforming its wastewater treatment plants into “biofactories”—which Aguas other sectors and from the government. AdP also created a new subcompany Andinas’s CEO defines as “business units that do not generate waste, have no to assume responsibility not only for driving the change process but also for environmental impacts, and do not consume fossil energy but produce their own identifying and developing new circular business models. Under the circular energy to operate.” The biofactory project was launched in 2017 to pioneer circular economy pillar of the strategic framework, AdP developed several actions: i) wastewater treatment solutions in Santiago and in the sector more broadly. With Under its Energy Neutrality Plan, AdP intends to be energy neutral by 2030 through this new concept, Aguas Andinas is promoting a paradigm change, moving from energy-efficiency measures and self-generated renewable energy; ii) Under its treatment to managing resources, from a linear to a circular approach in which Action Plan for Water Reuse, the company aims to reuse 15 percent of wastewater biofactories extract and supply new, valuable resources, such as electricity, by 2030 with a fit-for-purpose approach; and iii) Under its Sludge Strategic Plan natural gas, agricultural fertilizer, or clean water from what used to be considered AdP aims to cut the volume of generated biosolids in half, lowering management waste. The company’s goal is to be zero-waste, energy self-sufficient, and carbon costs by 45 percent (for annual savings of EUR 7 million) and focusing on neutral in its three wastewater treatment plants in Santiago by 2022. Read the full identifying and enabling various business models that reuse biosolids, recover case study here. materials from sludge, and generate additional revenue streams. Read the full case study here. Águas de Portugal and circular economy principles in the long-term strategies of urban utilities. Presented with a favorable political and regulatory environment, Source: World Bank 2019b, 2021h. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 42 X CHAPTER 4 This report aims to promote a common understanding on the defini- TITLE CONCLUSIONS tion and applications of circular economy principles and resilience in the urban water sector. Using the proposed WICER framework, it defines key elements in a circular and resilient urban water system, while making the case for implementing such a system. The report AND WAY also provides examples, case studies, guidelines, and other relevant material to guide practitioners in implementing the WICER principles in policy, regulation, plans, investments, and designs related to water supply and sanitation systems. The report sets out to demystify cir- FORWARD cular economy by showing that both high-income and low-income countries can benefit from it, and that many water supply and sani- tation utilities are already implementing solutions that contribute to an integrated WICER system. This report has framed these solutions under a comprehensive conceptual umbrella. They are not “all or nothing” propositions, and cities should not be reluctant to implement them—especially in view of the benefits they can bring. Applying the WICER framework provides environmental benefits as well as social, economic, and financial benefits. It is also a condition for achieving several of the global Sustainable Development Goals (SDGs). A circular and resilient water system fosters the sustainable and responsible use of water, energy, and other resources; reduces waste and pollution (such as greenhouse gas emissions and waste- water); and delivers resilient and inclusive water services, ultimately improving livelihoods while preserving water resources and the envi- ronment. Implementing the framework is also in line with the climate agenda and can be an ally in achieving several climate-related goals. At the same time, examples provided in the report (and in Annex A) show that investments in circular and resilient systems yield economic and financial payoffs. If projects are designed correctly, a circular and resilient water system reduces inefficiencies, recov- ers resources, uses nature-based solutions, reuses materials, and results in lower capital and operating costs and more revenue. These benefits make the system more financially robust—sometimes with SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 43 remarkably high returns on investment—and environmentally sustainable. possible interventions. Then, the urban water sector should be evaluated Moreover, if all potential externalities and systemic effects are correctly through the WICER lens to calculate costs and benefits and prioritize interven- accounted for, the economic outcomes of a circular and resilient system can tions. be even greater. For example, the amenity value from available and resilient public services raises housing prices, while sustainable water-related services Using the WICER framework, the World Bank can support and collaborate (supply, sanitation, and hygiene) have well-known benefits for human capital. with countries and cities to create a long-term plan that suits the commu- nity. Analyzed through the WICER lenses of circularity and resilience, plans, The WICER framework could help utilities attract private sector finance. projects, and investments can reveal their synergies and opportunities. For Applying the WICER framework can increase the operational and capital effi- example, if a utility is planning to build a wastewater treatment plant, the ciency of utilities by, for example, creating new revenue streams and business WICER framework can identify complementary solutions (such as upstream, models. These would in turn lower losses and costs, allowing utilities to lever- nature-based investments and resource recovery-and-reuse) that will age alternative financing mechanisms, such as those available to the private make the project more sustainable financially, environmentally, and socially. sector. Improved services can make utilities more sustainable and lower the Supporting client countries design, plan and invest in water projects based on financial risk posed by infrastructure projects. Improved rates of return create circularity and resilience contributes to the achievement of the SDGs. a more attractive environment for the private sector. Under the right condi- tions, the private sector can even be induced to cover most or all capital costs Follow-up activities and future work to advance the WICER framework have and risks (Box 3.13). been identified through consultations with World Bank task teams and clients: But cities and water utilities will not achieve a fully circular and resilient • WICER for decision making. A how-to guide could operationalize circu- water system without the proper policy, institutional, and regulatory frame- larity and resilience concepts, identify tradeoffs, and rank interventions work in place. Reforms are also needed in other sectors, like agriculture, and investments suitable for local contexts, different entry points, and key energy, industry, environment—and at the river basin, and household levels. counterparts. This guide could also include a menu of financial instruments The WICER framework can be adapted and raised to the policy level in gov- for WICER interventions. ernment and deployed to assemble relevant stakeholders for collaborative work across sectors. • Economic and financial analysis and prioritization of investments using the WICER framework. To attract funding for WICER projects, the how-to To avoid being locked into linear and inefficient systems, low- and mid- guide could be complemented with future work on the financial and eco- dle-income countries should consider applying the WICER framework to nomic benefits of the WICER approach versus a linear system. Decision design and implement circular and resilient water systems from the outset. makers need to know that a circular and resilient future is not only essen- This report sets out an array of options and opportunities appropriate for tial—it is also the most efficient way to achieve the SDGs. different budgets and capacities. Service providers and their partners must prioritize interventions and investments that maximize impact under given Policy, regulatory and institutional environment for WICER: Using the • conditions. The WICER framework can be used in workshops with a city’s major existing framework for PIR by the Water Global Practice, the key enabling stakeholders—utilities, municipal government, city planners, and potential end PIR conditions could be assessed, identifying necessary interventions and users of water and recovered resources. WICER can and should be used in a economic instruments to foster WICER interventions. cross-sectoral or multisectoral approach to guide assessments and identify SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 44 REFERENCES SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 45 Aarhusvand. 2020. “Achieving 150% Energy Self-Sufficiency at Marselisborg Boltz, Frederick, N. LeRoy Poff, Carl Folke, Nancy Kete, Casey M. Brown, Sarah St. Wastewater Treatment Plant.” https://www.aarhusvand.dk/en/international/ George Freeman, John H. Matthews, Alex Martinez, and Johan Rockström. 2019. about-us/news/achieving-150-energy-self-sufficiency-at-marselis- “Water Is a Master Variable: Solving for Resilience in the Modern Era.” Water borg-wwtp/. Security 8 (December): 100048. Abu-Ghunmi, Diana, Lina Abu-Ghunmi, Bassam Kayal, and Adel Bino. 2016. Boulding, Kenneth. 1966. “The Economics of the Coming Spaceship Earth.” “Circular Economy and the Opportunity Cost of Not ‘Closing the Loop’ of Water https://www.laceiba.org.mx/wp-content/uploads/2017/08/Boulding-1996- Industry: The Case of Jordan.” Journal of Cleaner Production 131 (September): The-economics-of-the-coming-spaceship-earth.pdf. 228–36. Browder, Greg, Suzanne Ozment, Irene Rehberger Bescos, Todd Gartner, Akbari, H., S. Menon, and A. Rosenfeld. 2009. “Global Cooling: Increasing World- and Glenn-Marie Lange. 2019. Integrating Green and Gray: Creating Next Wide Urban Albedos to Offset CO2.” Climatic Change 94 (3–4): 275–86. Generation Infrastructure. Washington, DC: World Bank and World Resources Institute. https://openknowledge.worldbank.org/handle/10986/31430. Andersson, K., A. Rosemarin, B. Lamizana, E. Kvarnström, J. McConville, R. Seidu, S. Dickin, and C. Trimmer. 2016. Sanitation, Wastewater Management Brown, Casey, Frederick Boltz, Sarah Freeman, Jacqueline Tront, and Diego and Sustainability: From Waste Disposal to Resource Recovery. Nairobi Rodriguez. 2020. “Resilience by Design: A Deep Uncertainty Approach for Water and Stockholm: United Nations Environment Programme and Stockholm Systems in a Changing World.” Water Security 9 (April): 100051. http://www. Environment Institute. sciencedirect.com/science/article/pii/S2468312419300070. Andres, Luis A., Michael Thibert, Camilo Lombana Cordoba, Alexander V. Caffera, Marcelo. 2011. “The Use of Economic Instruments for Pollution Danilenko, George Joseph, and Christian Borja-Vega. 2019. Doing More with Control in Latin America: Lessons for Future Policy Design.” Environment and Less: Smarter Subsidies for Water Supply and Sanitation. Washington, DC: Development Economics 16 (3): 247–73. https://www.researchgate.net/ World Bank. https://openknowledge.worldbank.org/handle/10986/32277. publication/227391268_The_use_of_economic_instruments_for_pollution_ control_in_Latin_America_Lessons_for_future_policy_design. Blackman, Allan. 2005. “Colombia’s Discharge Fee Program: Incentives for Polluters or Regulators?” Discussion Paper 05-31, Resources for the Future, Clifton, Craig, Rick Evans, Susan Hayes, Rafik Hirji, Gabrielle Puz, and Carolina Washington, DC, June. Pizarro. 2010. “Water and Climate Change: Impacts on Groundwater Resources and Adaptation Options.” Water Working Notes No. 25, World Bank, Blackman, Allen, Zhengyan Li, and Antung Liu. 2018. “Efficacy of Command- Washington, DC. https://openknowledge.worldbank.org/handle/10986/27857. and-Control and Market-Based Environmental Regulation in Developing Countries.” Annual Review of Resource Economics 10: 381–404. https://www. Chausson, Alexandre, Beth Turner, Dan Seddon, Nicole Chabaneix, Cécile A. J. annualreviews.org/doi/abs/10.1146/annurev-resource-100517-023144. Girardin, Valerie Kapos, Isabel Key, Dilys Roe, Alison Smith, Stephen Woroniecki, and Nathalie Seddon. 2020. “Mapping the Effectiveness of Nature-Based Blomsma, Fenna, and Geraldine Brennan. 2017. “The Emergence of Circular Solutions for Climate Change Adaptation.” Global Change Biology 26 (11): Economy: A New Framing around Prolonging Resource Productivity.” Journal of 6134–55. https://doi.org/10.1111/gcb.15310. Industrial Ecology 21 (3): 603–14. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 46 Chrispim, M. C., M. Scholz, and M. A. Nolasco. 2020. “A Framework for Resource ESMAP (Energy Sector Management Assistance Program). 2010. Good Recovery from Wastewater Treatment Plants in Megacities of Developing Practices in City Energy Efficiency: Monclova, Mexico—Monclova & Border Countries.” Environmental Research 188 (September): 109745. Fronterna Drinking Water System. ESMAP Energy Efficient Cities Initiative. Washington, DC: World Bank. https://www.esmap.org/node/664 Damania, Richard, Sébastien Desbureaux, Marie Hyland, Asif Islam, Scott Moore, Aude-Sophie Rodella, Jason Russ, and Esha Zaveri. 2017. Uncharted ESMAP. 2011. Good Practices in City Energy Efficiency: Mostar, Bosnia and Waters: The New Economics of Water Scarcity and Variability. Washington, DC: Herzegovina—Post-Conflict Water and Sewerage Rehabilitation Project. ESMAP World Bank. doi:10.1596/978-1- 4648-1179-1. Energy Efficient Cities Initiative. Washington, DC: World Bank. https://www. esmap.org/node/1298 Damania, Richard, Sébastien Desbureaux, Aude-Sophie Rodella, Jason Russ, and Esha Zaveri. 2019. Quality Unknown: The Invisible Water Crisis. Washington, ESMAP. 2012. A Primer on Energy Efficiency for Municipal Water and DC: World Bank. doi:10.1596/978-1-4648-1459-4. Wastewater Utilities. Washington, DC: World Bank. http://documents1. worldbank.org/curated/en/256321468331014545/pdf/682800ESMAP0WP0W- DHI. N.d. “Optimisation of Wastewater Treatment Plants: Custom Solutions to WU0TR0010120Resized.pdf. Increase Efficiency and Reduce Resource Consumption.” http://www.dhigroup. com/upload/publications/scribd/102207744-Optimisation-of-Wastewater- EPA (Environmental Protection Agency). 1998. Optimizing Water Treatment Treatment-Plants-DHI-Solution.pdf. Plant Performance Using the Composite Correction Program – 1998 Edition (EPA/625/6-91/027). Washington, DC: EPA. https://cfpub.epa.gov/si/si_pub- Ellen MacArthur Foundation, ARUP, and Antea Group“Water and Circular lic_record_report.cfm?Lab=NRMRL&dirEntryId=23902. Economy.” https://www.ellenmacarthurfoundation.org/assets/downloads/ ce100/Water-and-Circular-Economy-White-paper-WIP-2018-04-13.pdf. European Commission. 2014. “Communication from the Commission to the European Parliament, the Council, the European Economic and Social EMF (Ellen MacArthur Foundation). 2015. Growth Within: A Circular Economy Committee and the Committee of the Regions: Towards a Circular Economy: A Vision for a Competitive Europe. EMF. Zero Waste Programme for Europe.” European Commission, Brussels. EMF. 2020. Financing the Circular Economy: Capturing the Opportunity. EMF. European Commission. 2015. “Communication from the Commission to https://www.ellenmacarthurfoundation.org/publications/financing-the-circu- the European Parliament, the Council, the European Economic and Social lar-economy-capturing-the-opportunity. Committee, and the Committee of the Regions: Closing the Loop—An EU Action Plan for the Circular Economy.” European Commission, Brussels. Enriquez, Santiago, Ernesto Sánchez-Triana, and Mayra López. 2021. “Economic Instruments and Financial Mechanisms for the Adoption of a Circular European Commission. 2020. “Communication from the Commission to Economy.” In An Introduction to Circular Economy, edited by L. Liu and S. the European Parliament, the Council, the European Economic and Social Ramakrishna. Singapore: Springer. 10.1007/978-981-15-8510-4_23. Committee and the Committee of the Regions: A New Circular Economy Action Plan For a Cleaner and More Competitive Europe.” European Commission, Environment Canada. 2006. Guidance Manual for Sewage Treatment Plant Brussels. Process Audits. Ottawa, Ontario: Environment Canada. http://www.publica- tions.gc.ca/site/eng/290345/publication.html. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 47 FAO (Food and Agriculture Organization). 1992. Wastewater Treatment and Graedel, T. E., and B. A. Allenby. 1995. “Industrial Ecology.” Prentice Hall, New Use in Agriculture. Rome: FAO. http://www.fao.org/docrep/T0551E/T0551E00. Jersey. htm. GWP (Global Water Partnership) and IWMI (International Water Management Farley, Malcolm. 2001. Leakage Management and Control: A Best Practice Institute). 2021. “Storing Water: A New Integrated Approach for Resilient Training Manual. Geneva, Switzerland: World Health Organization. Development.” Perspectives Paper. https://www.gwp.org/globalassets/global/ toolbox/publications/perspective-papers/perspectives-paper-on-wa- Farley, Malcolm, and Stuart Trow. 2003. Losses in Water Distribution ter-storage.pdf. Networks—A Practitioner’s Guide to Assessment, Monitoring and Control. London: IWA Publishing. Haddad, E. A., and E. Teixeira. 2015. “Economic Impacts of Natural Disasters in Megacities: The Case of Floods in São Paulo, Brazil.” Habitat International 45 Farley, Malcom, Gary Wyeth, Zainuddin Bin Md. Ghazali, Arie Istandar, and (Part 2, January): 106–13. Sher Singh. 2008. The Manager’s Non-Revenue Water Handbook: A Guide to Understanding Water Losses. Kuala Lumpur, Malaysia: Ranhill Utilities Berhad; HLPW (High Level Panel on Water). 2018. Making Every Drop Count: An Agenda and Bangkok, Thailand: United States Agency for International Development. for Water Action: High-Level Panel on Water Outcome Document, March 14, 2018. HLPW Outcome Report. https://reliefweb.int/sites/reliefweb.int/files/ Frauendorfer, Rudolf, and Roland Liemberger. 2010. The Issues and Challenges resources/17825HLPW_Outcome.pdf. of Reducing Non-Revenue Water. Philippines: Asian Development Bank. Huntingford, C., D. Hemming, J. Gash, N. Gedney, and P. Nuttall. 2007. “Impact Frosch, R. A., and N. E. Gallopoulos. 1989. “Strategies for Manufacturing.” of Climate Change on Health: What Is Required of Climate Modellers?” Scientific American 261 (3): 144–52. Transactions of the Royal Society of Tropical Medicine and Hygiene 101 (2): 97–103. García L. E., J. H. Matthews, D. J. Rodriguez, M. Wijnen, K. N. DiFrancesco, and P. Ray. 2014. Beyond Downscaling: A Bottom-Up Approach to Climate Adaptation Hutton, G., and M. C. Varughese. 2016. “The Costs of Meeting the 2030 for Water Resources Management. Washington, DC: World Bank. https://open- Sustainable Development Goal Targets on Drinking Water Sanitation, and knowledge.worldbank.org/handle/10986/21066. Hygiene (English).” Water and Sanitation Program technical paper, World Bank Group, Washington, DC. http://documents.worldbank.org/curated/ Garder, Jason. 2019. “Optimize Existing Infrastructure before Installing More.” en/415441467988938343/The-costs-of-meeting-the-2030-sustainable- https://amplifiedperspectives.burnsmcd.com/post/optimize-existing-infra- development-goal-targets-ondrinking-water-sanitation-and-hygiene. structure-before-installing-more. IEA (International Energy Agency). 2016. Water Energy Nexus: Excerpt from the Girardin, Cécile A. J., Stuart Jenkins, Nathalie Seddon, Myles Allen, Simon L. World Energy Outlook 2016. Paris: IEA. Lewis, Charlotte E. Wheeler, Bronson W. Griscom, and Yadvinder Malhi. 2021. IEA. 2020. “Introduction to the Water-Energy Nexus.” IEA, Paris. https://www.iea. “Nature-Based Solutions Can Help Cool the Planet—If We Act Now.” Nature 593 org/articles/introduction-to-the-water-energy-nexus. (May): 191–94. https://www.nature.com/articles/d41586-021-01241-2. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 48 IEA Bioenergy. 2015. “Revaq Certified Wastewater Treatment Plants in Sweden Jha, Abhas K., Robin Bloch, and Jessica Lamond. 2012. Cities and Flooding: for Improved Quality of Recycled Digestate Nutrients.” https://www.ieabioen- A Guide to Integrated Urban Flood Risk Management for the 21st Century. ergy.com/wp-content/uploads/2018/01/REVAQ_CAse_study_A4_1.pdf. Washington, DC: World Bank. https://openknowledge.worldbank.org/han- dle/10986/2241. ING Bank. 2017. “Less Is More: Circular Economy Solutions to Water Shortages.” https://www.ingwb.com/media/1909772/circular-economy-solutions-to-wa- Kalmykova, Y., Madumita Sadagopan, and Leonardo Rosado. 2018. “Circular ter-shortages-report_march-2017.pdf. Economy—From Review of Theories and Practices to Development of Implementation Tools.” Resources, Conservation and Recycling 135 (August): IUCN (International Union for Conservation of Nature). 2016. “Definition of 190–201. Nature Based Solutions.” https://www.iucn.org/sites/dev/files/content/docu- ments/wcc_2016_res_069_en.pdf. Kennedy-Walker, Ruth, Nishtha Mehta, Seema Thomas, and Martin Gambrill. 2020. Connecting the Unconnected: Approaches for Getting Households to IWA (International Water Association). 2015. “Reduction of Non-Revenue Water Connect to Sewerage Networks. Washington, DC: World Bank. around the World.” https://iwa-network.org/reduction-of-non-revenue-wa- ter-around-the-world/. Kingdom, Bill, Roland Liemberger, and Philippe Marin. 2006. “The Challenge of Reducing Non-Revenue Water (NRW) in Developing Countries: How the Private IWA. 2016. “Water Utility Pathways in a Circular Economy.” IWA, London. https:// Sector Can Help: A Look at Performance-Based Service Contracting.” Water iwa-network.org/wp-content/uploads/2016/07/IWA_Circular_Economy_ Supply and Sanitation Sector Board Discussion Series Paper No. 8, World Bank, screen-1.pdf. Washington, DC. IWA. 2018. “The reuse opportunity”. The wastewater report 2018. Kirchherr, J., D. Reike, and M. Hekkert. 2017. “Conceptualizing the Circular Economy: An Analysis of 114 Definitions.” Resources, Conservation and IWA. 2019. Digital Water: Industry Leaders Chart the Transformation Journey. Recycling 127 (December): 221–32. London: IWA. Kisser, Johannes, Maria Wirth, Bart De Gusseme, Miriam Van Eekert, Grietje IWA. 2020. “Digital Water: Artificial Intelligence Solutions for the Water Sector.” Zeeman, Andreas Schoenborn, Björn Vinnerås, David C. Finger, Sabina Kolbl IWA, London. Repinc, Tjaša Griessler Bulc, Aida Bani, Dolja Pavlova, Lucian C. Staicu, Merve Atasoy, Zeynep Cetecioglu, Marika Kokko, Berat Z. Haznedaroglu, Joachim Jacobsen, Michael; Webster, Michael; Vairavamoorthy, Kalanithy. 2013. Hansen, Darja Istenič, Eriona Canga, Simos Malamis, Margaret Camilleri- The Future of Water in African Cities : Why Waste Water?. Directions in Fenech, and Luke Beesley. 2020. “A Review of Nature-Based Solutions for development;environment and sustainable development. Washington, Resource Recovery in Cities.” Blue-Green Systems 2 (1): 138–72. https://doi. DC: World Bank. © World Bank. https://openknowledge.worldbank.org/han- org/10.2166/bgs.2020.930. dle/10986/11964 Jeffries, Nick. 2017. “Applying the Circular Economy Lens to Water.” https://cir- Kolker, J. E., B. Kingdom, S. Trémolet, J. Winpenny, and R. Cardone. 2016. cular-impacts.eu/blog/2017/01/26/applying-circular-economy-lens-water. “Financing Options for the 2030 Water Agenda.” Water Global Practice Knowledge Brief, World Bank, Washington, DC. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 49 Korhonen, J. Cali Nuur, Andreas Feldmann, and Seyoum Eshetu Birkie. 2018. McDonough, W., and M. Braungart. 2002. Cradle to Cradle: Remaking the Way “Circular Economy as an Essentially Contested Concept.” Journal of Cleaner We Make Things. New York: North Point Press. Production 175 (February): 544–52. McNabola, Aonghus, Paul Coughlan, Lucy Corcoran, Christine Power, A. Prysor Lackey, K., and L. Fillmore. 2017. Energy Management for Water Utilities in Latin Williams, Ian Harris, John Gallagher, and David Styles. 2014. “Energy Recovery America and the Caribbean: Exploring Energy Efficiency and Energy Recovery in the Water Industry Using Micro-Hydropower: An Opportunity to Improve Potential in Wastewater Treatment Plants. Washington, DC: World Bank. http:// Sustainability.” Water Policy 16 (1): 168–83. 10.2166/wp.2013.164. pubdocs.worldbank.org/en/392871496427784755/Task-B-WERF1T14-web.pdf. Meadows, D. H., D. L. Meadows, J. Randers, and W. W. Behrens. 1972. The Limits Liemberger, R., and M. Farley. 2005. “Developing a Non-Revenue Water to Growth. New York: Universe Books. Reduction Strategy.” Water Science & Technology: Water Supply 5 (1): 41–50. Misra, Smita, and Bill Kingdom. 2019. “Citywide Inclusive Water Supply: Liemberger, Roland. 2010. “Recommendations for Initial Non-Revenue Adopting Off-Grid Solutions to Achieve the SDGs.” World Bank, Washington, DC. Water Assessment.” IWA Water Loss. https://www.miya-water.com/fotos/ https://openknowledge.worldbank.org/handle/10986/32046. artigos/recommendations_for_initial_non_revenue_water_assess- ment_13670727305a32620bcf0ba.pdf. MIT News. 2019. “Turning Desalination Waste into a Useful Resource.” https:// news.mit.edu/2019/brine-desalianation-waste-sodium-hydroxide-0213. Limaye, Dilip, and Kristoffer Welsien. 2019. “Mainstreaming Energy Efficiency Investments in Urban Water and Wastewater Utilities.” Water Guidance Note, New Civil Engineer. 2019. “Millions of Bricks to Be Made of Recycled Sewage World Bank, Washington, DC. Waste.” https://www.newcivilengineer.com/latest/millions-of-bricks-to-be- made-of-recycled-sewage-waste-02-04-2019/. Lombana Cordoba, Camilo, Gustavo Saltiel, Norhan Sadik, and Federico Perez Penalosa. 2021. “Utility of the Future: Taking Water and Sanitation Ngoni Zvimba, John. 2019. “Circular Economy Model for Water and Wastewater Utilities beyond the Next Level.” Diagnostic Assessment and Action Planning Management.” Presentation, July 17–19. http://www.unesco-simev.org/ Methodology Working Paper, World Bank, Washington, DC. wp-content/uploads/4-Circular-economy-water-and-ww_John-Zvimba.pdf. McKinsey. 2015. “Europe’s Circular-Economy Opportunity.” https://www. Nolasco, D., J. Stephenson, and B. DeAngelis. 1994. “Maximizing the Use of mckinsey.com/business-functions/sustainability/our-insights/europes-circu- Existing Facilities and Metro’s Main Treatment Plant Using the Process Audit lar-economy-opportunity. Approach.” Environmental Science and Engineering (June/July): 44–46. McKinsey Global Institute. 2011. Resource Revolution: Meeting the World’s OECD (Organisation for Economic Co-operation and Development). Energy, Materials, Food, and Water Needs. McKinsey Global Institute. https:// 2015. Water and Cities: Ensuring Sustainable Futures. OECD Studies www.mckinsey.com/~/media/mckinsey/business%20functions/sustainability/ on Water. Paris: OECD Publishing. Accessed April 4, 2018. https://doi. our%20insights/resource%20revolution/mgi_resource_revolution_full_report. org/10.1787/9789264230149-en. pdf. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 50 Oral, H. V., P. Carvalho, M. Gajewska, N. Ursino, F. Masi, E. D. van Hullebusch, 32. http://www.ecologyandsociety.org/vol14/iss2/art32/. J. K. Kazak, A. Exposito, G. Cipolletta, T. R. Andersen, D. C. Finger, L. Simperler, M. Regelsberger, V. Rous, M. Radinja, G. Buttiglieri, P. Krzeminski, A. Rizzo, K. Rodriguez, Diego J., Hector Alexander Serrano, Anna Delgado, Daniel Nolasco, Dehghanian, M. Nikolova, and M. Zimmermann. 2020. “A Review of Nature- and Gustavo Saltiel. 2020. From Waste to Resource: Shifting Paradigms for Based Solutions for Urban Water Management in European Circular Cities: Smarter Wastewater Interventions in Latin America and the Caribbean. A Critical Assessment Based on Case Studies and Literature.” Blue-Green Washington, DC: World Bank. https://openknowledge.worldbank.org/han- Systems 2 (1): 112–36. https://doi.org/10.2166/bgs.2020.932. dle/10986/33436. Otoo, Miriam, and Pay Drechsel, eds. 2018. Resource Recovery from Waste: Schröder, Patrick, Manuel Albaladejo, Pía Alonso Ribas, Melissa MacEwen, Business Models for Energy, Nutrient and Water Reuse in Low- and Middle- and Johanna Tilkanen. 2020. “The Circular Economy in Latin America and the Income Countries. Oxon, UK: Routledge-Earthscan. Caribbean Opportunities for Building Resilience.” Research Paper, Energy, Environment and Resources Programme, Chatham House, The Royal Institute PPIAF (Public-Private Infrastructure Advisory Facility). 2016. “Using of International Affairs, London. Performance-Based Contracts to Reduce Non-Revenue Water.” World Bank Group, Washington, DC. https://ppiaf.org/documents/3531/download?ot- Seddon, N., A. Smith, P. Smith, I. Key, A. Chausson, C. Girardin, J. House, S. p=b3RwIzE2MTE4MzAwMDg=. Srivastava, and B. Turner. 2021. “Getting the Message Right on Nature-Based Solutions to Climate Change.” Global Change Biology 27 (8): 1518–46. https:// Preston, Felix, Johanna Lehne, and Laura Wellesley. 2019. “An Inclusive Circular doi.org/10.1111/gcb.15513. Economy: Priorities for Developing Countries.” Research Paper, Energy, Environment and Resources Department, Chatham House, The Royal Institute Soz, Salman Anees, Jolanta Kryspin-Watson, and Zuzana Stanton-Geddes. of International Affairs, London. 2016. “The Role of Green Infrastructure Solutions in Urban Flood Risk Management.” World Bank, Washington, DC. Ray, Patrick A., and Casey M. Brown. 2015. Confronting Climate Uncertainty in Water Resources Planning and Project Design: The Decision Tree Framework. Smol, M., C. Adam, and M. Preisner. 2020. “Circular Economy Model Framework Washington, DC: World Bank. https://openknowledge.worldbank.org/han- in the European Water and Wastewater Sector.” Journal of Material Cycles dle/10986/22544. and Waste Management 22: 682–97. Rockefeller Foundation, The resilience shift, SIWI and ARUP 2019. The City Water Soppe, G., N. Janson, and S. Piantini. 2018. Water Utility Turnaround Framework: Resilience Approach. A Guide for Improving Performance. Washington, DC: World Bank. http:// documents.worldbank.org/curated/en/515931542315166330/Water-Utility- Rockström, J., W. Steffen, K. Noone, Å. Persson, F. S. III Chapin, E. Lambin, T. M. Turnaround-Framework-A-Guide-for-Improving-Performance. Lenton, M. Scheffer, C. Folke, H. Schellnhuber, B. Nykvist, C. A. De Wit, T. Hughes, S. van der Leeuw, H. Rodhe, S. Sörlin, P. K. Snyder, R. Costanza, U. Svedin, Stahel, Walter R., and Geneviève Reday-Mulvey. 1976/1981. Jobs for Tomorrow, M. Falkenmark, L. Karlberg, R. W. Corell, V. J. Fabry, J. Hansen, B. Walker, D. the Potential for Substituting Manpower for Energy. Report to the Commission Liverman, K. Richardson, P. Crutzen, and J. Foley. 2009. “Planetary Boundaries: of the European Communities, Brussels. New York: Vantage Press. Exploring the Safe Operating Space for Humanity.” Ecology and Society 14 (2): SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 51 Stahel, W. R. 2006. The Performance Economy. Basingstoke, UK: Palgrave UNIDO (United Nations Industrial Development Organization). N.d. “Circular Macmillan. Economy.” https://www.unido.org/sites/default/files/2017-07/Circular_ Economy_UNIDO_0.pdf. Stanchev, P., V. Vasilaki, J. Dosta, and E. Katsou. 2017. “Measuring the Circular Economy of Water Sector in the Three-Fold Linkage of Water, Energy & UN-Water. 2020. “UN-Water Analytical Brief on Unconventional Water Materials.” https://www.smart-plant.eu/images/publications/circular-econ- Resources.” UN-Water, Geneva, Switzerland. omy/1_Athens2017_Stanchev_Vasilaki_Mousavi_Dosta_Katsou.pdf. Varis, O., A. K. Biswas, C. Tortajada, and J. Lundqvist. 2006. “Megacities and TPO Magazine. 2011. “A Solar PV Installation in Boulder, Colo., Required Minimal Water Management.” Water Resources Development 22 (2): 377–94. Up-Front Investment, and Yet Provides Substantial Benefits in Lower Power Costs.” https://www.tpomag.com/editorial/2011/03/outlook_sunny. Veolia. 2014. “Water at the Heart of the Circular Economy.” https://www.veolia. com/sites/g/files/dvc2491/files/document/2014/12/economy-circular-water. UN (United Nations). N.d. “UN SDG—Goal 12 Facts.” https://www.un.org/sustain- pdf. abledevelopment/sustainable-consumption-production/. Veolia. 2020. “Invest in Micro Hydro Power Plants.” United Nations, 2021. The United Nations World Water Development Report 2021: Valuing Water. UNESCO, Paris Waternet. 2017. “Enhanced Sewage Sludge Treatment with Struvite Recovery.” https://conferences.aquaenviro.co.uk/wp-content/uploads/sites/7/2017/08/ UNEP (United Nations Environment Programme). 2015. Options for Decoupling Alex-Veltman-Waternet pdf. Economic Growth from Water Use and Water Pollution: A Report of the International Resource Panel Working Group on Sustainable Water WBCSD (World Business Council for Sustainable Development). 2017. Business Management. Nairobi, Kenya: UNEP. Guide to Circular Water Management: Spotlight on Reduce, Reuse and Recycle. Geneva: WBCSD. https://docs.wbcsd.org/2017/06/WBCSD_Business_ UNEP. 2017. Resilience and Resource Efficiency in Cities. Nairobi, Kenya: UNEP. Guide_Circular_Water_Management.pdf. UNEP. 2019. “Innovative Smart Phone App to Improve Rainwater Harvesting in WEF (Water Environment Federation). 2016. Operation of Water Resource Africa.” https://www.unenvironment.org/pt-br/node/24784. Recovery Facilities, Manual of Practice No. 11. 7th ed. Alexandria, VA: WEF Press. UNEP FI (Finance Initiative). 2020. Financing Circularity: Demystifying Finance WEF (Water Environment Federation). 2020. ReNEW RESOURCE RECOVERY for Circular Economies. Geneva, Switzerland: UNEP FI. ROADMAP. ReNEW Water Project: Resource Recovery to Fuel and Grow a Circular Economy UNEP and UNDP (United Nations Development Programme). 2020. A 1.5°C World Requires a Circular and Low Carbon Economy. 1st ed. New York: UNDP. WHO (World Health Organization). 2006. Guidelines for the Safe Use of UNESCO (United Nations Educational, Scientific and Cultural Organization) and Wastewater, Excreta and Greywater”. Geneva: WHO. https://www.who.int/pub- UN-Water. 2020. United Nations World Water Development Report 2020: Water lications/i/item/9241546859 and Climate Change. Paris: UNESCO. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 52 WHO and UNICEF (United Nations Children’s Fund). 2019. Progress on World Bank. 2018e. “Wastewater: From Waste to Resource—The Case of Household Drinking Water, Sanitation and Hygiene 2000–2017: Special Focus Durban, South Africa.” World Bank, Washington, DC. https://openknowledge. on Inequalities. Geneva: WHO and UNICEF. worldbank.org/handle/10986/29489 World Bank. 2016a. High and Dry: Climate Change, Water, and the Economy. World Bank. 2018f. “Wastewater: From Waste to Resource—The Case of Washington, DC: World Bank. Atotonilco de Tula, Mexico.” World Bank, Washington, DC. https://openknowl- edge.worldbank.org/handle/10986/29493 World Bank. 2016b. “Partnership for a Water Secure World.” World Bank, Washington, DC. World Bank. 2019a. “Wastewater: From Waste to Resource: Background Paper I: Efficient and Effective Management of Water Resource Recovery Facilities.” World Bank. 2016c. Mainstreaming Water Resources Management in Urban World Bank, Washington, DC. Projects: Taking an Integrated Urban Water Management Approach. Washington, DC: World Bank. http://hdl.handle.net/10986/29613. World Bank. 2019b. “Wastewater: From Waste to Resource—The Case of Santiago, Chile.” World Bank, Washington, DC. http://documents.worldbank. World Bank. 2016d. “What Is Non-Revenue Water? How Can We Reduce It for org/curated/en/284951573498126244/pdf/Wastewater-From-Waste-to- Better Water Service?” https://blogs.worldbank.org/water/what-non-revenue- Resource-The-Case-of-Santiago-Chile.pdf. water-how-can-we-reduce-it-better-water-service. World Bank. 2019c. Nature-Based Solutions for Disaster Risk Management. World Bank. 2017. Including Climate Uncertainty in Water Resources Planning Washington, DC: World Bank. http://documents1.worldbank.org/curated/ and Project Design-Decision Tree Initiative: Pilot Studies of the Cutzamala en/253401551126252092/pdf/134847-NBS-for-DRM-booklet pdf. Water System, Mexico—Draft Final Report. Washington, DC: World Bank. World Bank. 2019d. “Wastewater: From Waste to Resource—The Case of World Bank. 2018a. Water Scarce Cities: Thriving in a Finite World—Full Report. Arequipa, Peru.” World Bank, Washington, DC. https://openknowledge.world- Washington, DC: World Bank. https://openknowledge.worldbank.org/han- bank.org/handle/10986/33110. dle/10986/29623 World Bank. 2019e. “Wastewater: From Waste to Resource: Background Paper World Bank. 2018b. Building the Resilience of WSS Utilities to Climate Change IV: Policy, Regulatory and Institutional Incentives for the Development of and Other Threats: A Road Map. Washington, DC: World Bank. https://open- Resource Recovery Projects in Wastewater.” World Bank, Washington, DC. knowledge.worldbank.org/handle/10986/31090. World Bank. 2020a. “Saving Lives, Scaling-Up Impact and Getting Back World Bank. 2018c. “Wastewater: From Waste to Resource—The Case of on Track.” COVID-19 Crisis Response Approach Paper, World Bank Group, Ridgewood, NJ, USA.” World Bank, Washington, DC. https://openknowledge. Washington, DC, June 2020. worldbank.org/handle/10986/29487. World Bank. 2020b. “Roofs, Rain and Life: Rainwater Harvesting for Safe Water World Bank. 2018d. “Wastewater: From Waste to Resource—The Case of San Supply and Sustainable Co-Benefits.” https://blogs.worldbank.org/water/ Luis Potosí, Mexico.” World Bank, Washington, DC. https://openknowledge. roofs-rain-and-life-rainwater-harvesting-safe-water-supply-and-sustain- worldbank.org/handle/10986/29491 able-co-benefits. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 53 World Bank. 2020c. “Resilient Water Infrastructure Design Brief.” World Bank, edge.worldbank.org/handle/10986/35661. Washington, DC. https://openknowledge.worldbank.org/handle/10986/34448. World Bank. 2021g. Water in Circular Economy and Resilience (WICER): The World Bank. 2020d. “Improving Sustainability and Efficiency in Uruguay´s Case of North Gaza, Palestine: Wastewater Treatment for Aquifer Recharge National Water Supply and Sanitation Company.” World Bank, Washington, and Reuse in a Fragile, Conflict and Violence (FCV) and Water Scarce DC. https://www.worldbank.org/en/results/2020/10/26/sustainability-efficien- Context. Washington, DC: World Bank. https://openknowledge.worldbank.org/ cy-uruguay-water-supply. handle/10986/36243. World Bank. 2021a. Water in Circular Economy and Resilience (WICER): The World Bank. 2021h. Water in Circular Economy and Resilience (WICER): The Case of Chennai, India: Recovering Water and Energy from Wastewater. Case of Aguas de Portugal, Portugal: Implementing Circular Economy and Washington, DC: World Bank. https://openknowledge.worldbank.org/han- Resilience Principles in the Long-Term Strategy of Urban Utilities. Washington, dle/10986/35659. DC: World Bank. https://openknowledge.worldbank.org/handle/10986/36244. World Bank. 2021b. Water in Circular Economy and Resilience (WICER): The World Bank. N.d. “Citywide Inclusive Sanitation (CWIS) Initiative.” https://www. Case of São Paolo, Brazil: Optimizing Wastewater Treatment Plants in the worldbank.org/en/topic/sanitation/brief/citywide-inclusive-sanitation. Metropolitan Area of São Paulo. Washington, DC: World Bank. https://open- knowledge.worldbank.org/handle/10986/36245. WSP (Water and Sanitation Program). 2008–2009. Performance Improvement Planning: Volume 1: Upgrading and Improving Urban Water Services, Volume World Bank. 2021c. Water in Circular Economy and Resilience (WICER): The 2: Developing Effective Billing and Collection Practices, Volume 3: Designing Case of Indonesia: Promoting Nonrevenue Water Reduction and Energy an Effective Leakage Reduction and Management Program, Volume 4: Efficiency in Indonesia’s Water Utilities. Washington, DC: World Bank. https:// Implementing Robust Consumer Voice Mechanisms. Washington, DC: World openknowledge.worldbank.org/handle/10986/35660. Bank. World Bank. 2021d. Water in Circular Economy and Resilience (WICER): The WWAP (United Nations World Water Assessment Programme). 2014. The United Case of Phnom Penh, Cambodia: Improving Operational Efficiency and Nations World Water Development Report 2014: Water and Energy. Paris: Reducing Nonrevenue Water. Washington, DC: World Bank. https://openknowl- UNESCO. edge.worldbank.org/handle/10986/35820. WWAP. 2017. The United Nations World Water Development Report 2017: World Bank. 2021e. Water in Circular Economy and Resilience (WICER): The Wastewater: The Untapped Resource. Paris: UNESCO. Case of Dakar, Senegal: Recovering Resources from Wastewater and Fecal Sludge under Circular Economy Principles. Washington, DC: World Bank. WWAP. 2019. The United Nations World Water Development Report 2019: Leaving No One Behind. Paris: UNESCO. World Bank. 2021f. Water in Circular Economy and Resilience (WICER): The Case of Lingyuan City, China: Unconventional Water Resources in a Water- Scarce City: Recycling Treated Municipal Wastewater for Industrial Users and to Restore the Ecosystem. Washington, DC: World Bank. https://openknowl- SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 54 ANNEX A LIST OF WORLD BANK RESOURCES BY OUTCOME AND ACTION SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 55 Outcome 1 Deliver resilient and inclusive services Action 2 Maximize the use of existing infrastructure World Bank. 2019. “Wastewater: From Waste to Resource: Background Paper I: Diversify supply sources and manage and optimize water Action 1 Efficient and Effective Management of Water Resource Recovery Facilities.” World resources and storage Bank, Washington, DC. World Bank. 2016. Mainstreaming Water Resources Management in Urban Projects: Case studies Taking an Integrated Urban Water Management Approach. Washington, DC: World World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of Bank. http://hdl.handle.net/10986/29613. São Paulo, Brazil: Optimizing Wastewater Treatment Plants in the Metropolitan Area of São Paulo. Washington, DC: World Bank. World Bank. 2018. Water Scarce Cities: Thriving in a Finite World—Full Report. Washington, DC: World Bank. Action 3 Plan and invest for climate and nonclimate uncertainties World Bank. 2019. The Role of Desalination in an Increasingly Water-Scarce Jha, Abhas K., Robin Bloch, and Jessica Lamond. 2012. Cities and Flooding: A Guide World. Washington, DC: World Bank. https://openknowledge.worldbank.org/ to Integrated Urban Flood Risk Management for the 21st Century. Washington, DC: handle/10986/31416. World Bank. https://openknowledge.worldbank.org/handle/10986/2241. Case studies Kirchner, Lizmara, Laura Bonzanigo, Clémentine Stip, Diego Rodriguez, and Maria World Bank. 2018. “Wastewater: From Waste to Resource—The Case of Durban, Catalina Ramirez Villegas. 2020. “Urban Water Resilience.” Urban 20 White Paper, a South Africa.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ contribution to the Urban 20 (U20), Buenos Aires. handle/10986/29489. Ray, Patrick A., and Casey M. Brown. 2015. Confronting Climate Uncertainty in Water World Bank. 2019. “Wastewater: From Waste to Resource: Background Paper II: Resources Planning and Project Design: The Decision Tree Framework. Washington, Showcasing the River Basin Planning Process through a Concrete Example: The Rio DC: World Bank. https://openknowledge.worldbank.org/handle/10986/22544. Bogota Cleanup Project.” World Bank, Washington, DC. Stip, C., Z. Mao, L. Bonzanigo, G. Browder, and J. Tracy. 2019. “Water Infrastructure Resilience—Examples of Dams, Wastewater Treatment Plants, and Water Supply World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of and Sanitation Systems.” Sector note for Lifelines: The Resilient Infrastructure Chennai, India: Recovering Water and Energy from Wastewater. Washington, DC: Opportunity, World Bank, Washington, DC. World Bank. World Bank. 2018. Building the Resilience of WSS Utilities to Climate Change and Other Threats: A Road Map. Washington, DC: World Bank. https://openknowledge. worldbank.org/handle/10986/31090. World Bank. 2020. “Resilient Water Infrastructure Design Brief.” World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/34448. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 56 Outcome 2 Design out waste and pollution Lackey, K., and L. Fillmore. 2017. “Appendix D. Wastewater Utility Case Studies on Energy Management.” In Energy Management for Water Utilities in Latin America Action 1 Be energy efficient and use renewable energy and the Caribbean. Includes: Cañaveralejo WWTP at EMCALI in Cali, Colombia; Laboreaux WWTP at SAAE in Itabira, MG, Brazil; Ithaca Area WRRF in Ithaca, New York, ESMAP (Energy Sector Management Assistance Program). 2012. A Primer on United States; and Strass WRRF in Strass im Zillertal, Austria. Energy Efficiency for Municipal Water and Wastewater Utilities. Washington, DC: World Bank. http://documents1.worldbank.org/curated/en/256321468331014545/ World Bank. 2017. Energy Management for Water Utilities in Latin America and the pdf/682800ESMAP0WP0WWU0TR0010120Resized.pdf. Caribbean: Case Study Series and Summary Note. Washington, DC: World Bank. World Bank. 2018. “Wastewater: From Waste to Resource—The Case of Ridgewood, Lackey, K., and L. Fillmore. 2017. Energy Management for Water Utilities in Latin NJ, USA.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ America and the Caribbean: Exploring Energy Efficiency and Energy Recovery handle/10986/29487. Potential in Wastewater Treatment Plants. Washington, DC: World Bank. World Bank. 2019. “Wastewater: From Waste to Resource—The Case of Santiago, Limaye, Dilip, and Kristoffer Welsien. 2019. “Mainstreaming Energy Efficiency Chile.” World Bank, Washington, DC. http://documents.worldbank.org/curated/ Investments in Urban Water and Wastewater Utilities.” Water Guidance Note, World en/284951573498126244/pdf/Wastewater-From-Waste-to-Resource-The-Case- Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/31927. of-Santiago-Chile.pdf. Vazquez, A. V., and K. Buchauer. 2014. East Asia and Pacific—Wastewater to Energy Action 2 Optimize Operations Processes: A Technical Note for Utility Managers in EAP Countries: Main Report Kingdom, Bill, Roland Liemberger, and Philippe Marin. 2006. “The Challenge of (English). Washington, DC: World Bank Group. http://documents.worldbank.org/ Reducing Non-Revenue Water (NRW) in Developing Countries: How the Private curated/en/489941468188683153/Main-report. Sector Can Help: A Look at Performance-Based Service Contracting.” Water Supply World Bank. 2019. “Energy Efficiency Investments in Urban Water and Wastewater and Sanitation Sector Board Discussion Paper Series Paper No. 8, World Bank, Utilities.” World Bank, Washington, DC. https://www.worldbank.org/en/topic/water/ Washington, DC publication/energy-efficiency-investments-in-urban-water-and-wastewater- utilities. Lombana Cordoba, Camilo, Gustavo Saltiel, Norhan Sadik, and Federico Perez Penalosa. 2021. “Utility of the Future: Taking Water and Sanitation Utilities Beyond Case studies the Next Level.” Diagnostic Assessment and Action Planning Methodology Working ESMAP 2010. Good Practices in City Energy Efficiency: Monclova, Mexico—Monclova Paper, World Bank, Washington, DC. & Border Fronterna Drinking Water System. ESMAP Energy Efficient Cities Initiative. Washington, DC: World Bank. https://www.esmap.org/node/664 PPIAF (Public-Private Infrastructure Advisory Facility). 2016. “Using Performance- Based Contracts to Reduce Non-Revenue Water.” World Bank Group, Washington, ESMAP. 2011. Good Practices in City Energy Efficiency: Mostar, Bosnia and DC. https://ppiaf.org/documents/3531/download?otp=b3RwIzE2MTE4MzAwMDg=. Herzegovina—Post-Conflict Water and Sewerage Rehabilitation Project. ESMAP Energy Efficient Cities Initiative. Washington, DC: World Bank. https://www.esmap. org/node/1298 SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 57 Soppe, G., N. Janson, and S. Piantini. 2018. Water Utility Turnaround Framework: A World Bank. 2019. “Wastewater: From Waste to Resource: Background Paper VI: Guide for Improving Performance. Washington, DC: World Bank. http://documents. Market Potential and Business Models for Resource Recovery Products.” World Bank, worldbank.org/curated/en/515931542315166330/Water-Utility-Turnaround- Washington, DC. Framework-A-Guide-for-Improving-Performance. Case studies WSP (Water and Sanitation Program). 2008–2009. Performance Improvement World Bank. 2018. “Wastewater: From Waste to Resource—The Case of Atotonilco de Planning: Volume 1: Upgrading and Improving Urban Water Services; Volume Tula, Mexico.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ 2: Developing Effective Billing and Collection Practices; Volume 3: Designing an handle/10986/29493. Effective Leakage Reduction and Management Program; Volume 4: Implementing Robust Consumer Voice Mechanisms. Washington, DC: World Bank. World Bank. 2018. “Wastewater: From Waste to Resource—The Case of Atotonilco de Tula, Mexico.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ Case studies handle/10986/29493. World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of Indonesia: Promoting Nonrevenue Water Reduction and Energy Efficiency in World Bank. 2018. “Wastewater: From Waste to Resource—The Case of Durban, Indonesia’s Water Utilities. Washington, DC: World Bank. South Africa.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ handle/10986/29489. World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of Phnom Penh, Cambodia: Improving Operational Efficiency and Reducing World Bank. 2018. “Wastewater: From Waste to Resource—The Case of New Cairo, Nonrevenue Water. Washington, DC: World Bank. Egypt.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ handle/10986/29490. Action 3 Recover resources World Bank. 2018. “Wastewater: From Waste to Resource—The Case of San Luis Rodriguez, Diego J., Hector Alexander Serrano, Anna Delgado, Daniel Nolasco, and Potosí, Mexico.” World Bank, Washington, DC. https://openknowledge.worldbank. Gustavo Saltiel. 2020. From Waste to Resource: Shifting Paradigms for Smarter org/handle/10986/29491. Wastewater Interventions in Latin America and the Caribbean. Washington, DC: World Bank. 2019. “Wastewater: From Waste to Resource—The Case of Nagpur, World Bank. https://openknowledge.worldbank.org/handle/10986/33436. India.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ World Bank. 2018. Water Scarce Cities: Thriving in a Finite World—Full Report. handle/10986/33111. Washington, DC: World Bank. World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of World Bank. 2019. “Wastewater: From Waste to Resource: Background Paper IV: Chennai, India: Recovering Water and Energy from Wastewater. Washington, DC: Policy, Regulatory and Institutional Incentives for the Development of Resource World Bank Recovery Projects in Wastewater.” World Bank, Washington, DC. World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of World Bank. 2019. “Wastewater: From Waste to Resource: Background Paper Dakar, Senegal: Recovering Resources from Wastewater and Fecal Sludge under V: Financial Incentives for the Development of Resource Recovery Projects in Circular Economy Principles. Washington, DC: World Bank Wastewater.” World Bank, Washington, DC. World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of World Bank. 2019. “Wastewater: From Waste to Resource: Background Paper Lingyuan City, China: Unconventional Water Resources in a Water-Scarce City: V: Financial Incentives for the Development of Resource Recovery Projects in Recycling Treated Municipal Wastewater for Industrial Users and to Restore the Wastewater.” World Bank, Washington, DC. Ecosystem. Washington, DC: World Bank SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 58 Preserve and regenerate natural Action 3 Recharge and manage aquifers Outcome 3 systems Clifton, Craig, Rick Evans, Susan Hayes, Rafik Hirji, Gabrielle Puz, and Carolina Action 1 Incorporate nature-based solutions Pizarro. 2010. “Water and Climate Change: Impacts on Groundwater Resources and Adaptation Options.” Water Working Notes No. 25, World Bank, Washington, DC. Browder, Greg, Suzanne Ozment, Irene Rehberger Bescos, Todd Gartner, and https://openknowledge.worldbank.org/handle/10986/27857. Glenn-Marie Lange. 2019. Integrating Green and Gray: Creating Next Generation Infrastructure. Washington, DC: World Bank and World Resources Institute. https:// Foster, Stephen, Adrian Lawrence, and Brian Morris. 2008. “Groundwater in Urban openknowledge.worldbank.org/handle/10986/31430. Development: Assessing Management Needs & Formulating Policy Strategies.” Water P-Notes No. 18, World Bank, Washington, DC. https://openknowledge. Soz, Salman Anees, Jolanta Kryspin-Watson, and Zuzana Stanton-Geddes. 2016. worldbank.org/handle/10986/11748. “The Role of Green Infrastructure Solutions in Urban Flood Risk Management.” World Bank, Washington, DC. http://hdl.handle.net/10986/25112. Foster, Stephen, Ricardo Hirata, Daniel Gomes, Monica D’Elia, and Marta Paris. 2002. Groundwater Quality Protection: A Guide for Water Utilities, Municipal Authorities, World Bank. 2019. Nature-Based Solutions for Disaster Risk Management. and Environment Agencies. Washington, DC: World Bank. https://openknowledge. Washington, DC: World Bank. http://documents1.worldbank.org/curated/ worldbank.org/handle/10986/13843. en/253401551126252092/pdf/134847-NBS-for-DRM-booklet pdf. Case studies World Bank. 2021. Water in Circular Economy and Resilience (WICER): The Case of Action 2 Restore degraded land and watersheds North Gaza, Palestine: Wastewater Treatment for Aquifer Recharge and Reuse in a Fragile, Conflict and Violence (FCV) and Water Scarce Context. Washington, DC: Darghouth, Salah, Christopher Ward, Gretel Gambarelli, Erika Styger, and Julienne World Bank. Roux. 2008. “Watershed Management Approaches, Policies, and Operations: Lessons for Scaling Up.” Water Sector Board Discussion Paper Series No. 11, World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/17240. Cross-cutting issues Case studies World Bank. 2018. “Wastewater: From Waste to Resource—The Case of San Luis Inclusiveness Potosí, Mexico.” World Bank, Washington, DC. https://openknowledge.worldbank. Cardone, Rachel, Alyse Schrecongost, and Rebecca Gilsdorf. 2018. Shared and org/handle/10986/29491. Public Toilets: Championing Delivery Models that Work. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/30296. World Bank. 2019. “Wastewater: From Waste to Resource—The Case of Arequipa, Peru.” World Bank, Washington, DC. https://openknowledge.worldbank.org/ Das, Maitreyi Bordia. 2017. “The Rising Tide: A New Look at Water and Gender.” World handle/10986/33110. Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/27949. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 59 Cross-cutting issues Hawkins, Peter, Isabel Blackett, and Chris Heymans. 2013. “Poor-Inclusive Urban Sanitation: An Overview.” Water and Sanitation Program study, World Bank, Washington, DC. http://documents.worldbank.org/curated/ en/713791468323120203/Poor-inclusive-urban-sanitation-an-overview. Kennedy-Walker, Ruth, Nishtha Mehta, Seema Thomas, and Martin Gambrill. 2020. Connecting the Unconnected: Approaches for Getting Households to Connect to Sewerage Networks. Washington, DC: World Bank. http://hdl.handle. net/10986/34791. Misra, Smita, and Bill Kingdom. 2019. “Citywide Inclusive Water Supply: Adopting Off-Grid Solutions to Achieve the SDGs.” World Bank, Washington, DC. https:// openknowledge.worldbank.org/handle/10986/32046. World Bank. 2017. Reducing Inequalities in Water Supply, Sanitation, and Hygiene in the Era of the Sustainable Development Goals: Synthesis Report of the WASH Poverty Diagnostic Initiative. WASH Synthesis Report. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/27831. SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 60 ANNEX B SUMMARY OF MAIN REFERENCES ON WATER AND THE CIRCULAR ECONOMY SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 61 Ellen MacArthur Foundation, ARUP, and Antea Group. dations, describes how the circular economy principles relate and can be 2018. “Water and Circular Economy.” applied to water systems. This white paper explores the relationship between the principles of the The paper also describes water systems from four different perspectives to circular economy and sustainable water management, identifying the establish a common understanding between circular economy and water opportunities that are offered through applying circular economy principles cycle experts, and explores the opportunities presented by the circular econ- to water systems. Table B.1, excerpted from the white paper with a few emen- omy from each perspective. Table B.1 How circular economy principles apply to water systems Table B.2 How circular economy principles benefit water systems from four per- spectives Circular Dimensions of use: Water as a service, a carrier, and source of energy economy Gray infrastructure components principles • Optimize the amount of energy, minerals, and chemicals used in the operation of water systems in concert with other systems. Design out waste • Optimize consumptive use of water within a sub-basin and externalities in relation to adjacent sub-basins (e.g., for agriculture or evaporative cooling). • Implement measures or solutions that deliver the same outcome without using water. • Optimize resource yields (water use & reuse, energy, minerals, and chemicals) within water systems. Keep resources • Optimize energy or resource extraction from the water in use system and maximize their reuse. • Optimize value generated in the interfaces of the water system with other systems. • Maximize environmental flows by reducing consumptive and non-consumptive uses of water. Regenerate • Preserve and enhance the natural capital (e.g., river natural systems restoration, pollution prevention, quality of effluent, etc.). • Ensure minimum disruption to natural water systems from human interactions and use. Source: Ellen MacArthur Foundation, ARUP, and Antea Group 2018. 4' (%$+)!56/17/ SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 62 Systems perspective Basin perspective The document argues that it is important to understand a system and its context, and that depending on the type of basin and city characteristics (climate, scale, level of development, and so forth), the nature of the opportunities for generating additional value with the application of circular economy principles will be different. A suite of solutions that would be viable in one city-basin archetype could be less viable in another. Urban water system perspective The figure presents a simplified view of the components of a municipal water system and some examples of how a municipal water system interfaces with industry, energy systems, agriculture, food production, and the wider environment. The document further explains some of these potential circular economy examples. • Within a given basin, the natural water cycle acts to re-optimize, reuse, and replenish water. On the left side, water is depicted in its natural state, with no human-induced uses. • The graph on the right shows the opportunity offered by the circular economy to 1' 2)3*" 45$06.0 better align the human water cycle with the natural water cycle by undertaking the following actions: • Avoid use—through rethinking products and services and eliminating ineffective actions. • Reduce use—driving continuous improvements through water use efficiency and better resource allocation and management. • Reuse—pursuing any and all opportunities to reuse water within an operation (closed loop) and for external applications within the surrounding vicinity or community. • Recycle—within internal operations and/or for external applications. • Replenish—efficiently and effectively returning water to the basin. Source: Adapted from Ellen MacArthur Foundation, ARUP, and Antea Group (2018). SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 63 The white paper also presents some case studies of the application of circular International Water Association. 2016. “Water Utility economy principles, including integrated water, waste, and resource recov- Pathways in a Circular Economy.” London. ery; wastewater heat recovery; waterless dyeing in textile industry; direct dry cooling in the power sector; energy positive wastewater treatment; nutrient This report describes a framework that aims to support the identification of recovery; and water reuse. circular economy opportunities, and the means to make the most of them within three interrelated pathways: the Water Pathway; the Material Pathway, Finally, it concludes with saying that “Circular economy creates a shift that and the Energy Pathway. seeks value from the wider system rather than just from the fixed point at which consumption applies. Functional requirement will still be met; at the The report identifies: same time as creating value from resource efficiency and water use dimen- sions of service energy and carrier. Digital technology and innovative business 1. Drivers and enablers of a circular economy: consumers, industry, regu- practice help realize this. In this way the application of circular economy prin- lation, infrastructure and urban and basin economies ciples can help us meet the step changes to practice that will be necessary for it to meet future water demands, whilst facing key challenges access to 2. Pathway boosters: integrated urban resource management; connecting resource, increased demand, and more stringent quality and pollution and to stakeholders beyond traditional boundaries; leadership, innovation, environmental controls.” and new business models 3. Critical junctures where water, energy, or materials intersect and opportunities arise to transition to the circular economy: water-wise communities, industry, wastewater treatment plans, drinking water treatment plants, agriculture, the natural environment, and energy gen- eration The report then uses diagrams (see figure B.1) to explain the different path- ways, and provides examples of regulatory and market levers that could benefit each action (identified by number in the diagrams). SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 64 4 Factory 12 water are products that have found a niche market, o en in collaboration with the industry. a closed loop system, with cascading water quality options determined and differentiated Products by use. Critical to this are diversified resource options, efficient conveyance systems and optimal reuse. 5 6 7 8 The first line of defence against water scarcity should be a comprehensive demand management Figure strategy B.1 Three that pathways promotes toward a circular sustainable economy lifestyles and creates tangible incentives to conserve. 9 10 11 2 Materials 3 4 Factory 12 1 9 3 1 Products 5 6 7 8 7 5 9 10 11 1 3 Food 4 Food 4 2 3 9 6 1 1 41 1 Food 4 12 2 6 4 Food 4 12 2 The Materials Pathway Products Products Products Recovered materials 1 Resource efficiency 5 Bioplastics 9 Proteins & Feed Recovered materials 1 Resource efficiency 5 Bioplastics Organic matter Wastewater sludge and products 2 6 Fertiliser (non-agricultural) 10 Metals & Minerals Recovered Water materials thereof for agriculture 1 Resource efficiency 5 Bioplastics Organic matter3 Organic waste added Wastewater 7 sludge and11products 2 6 Paper & Cellulose Gas to wastewater sludge Human health products Fertiliser (non- Organic matter thereof for Wastewater agriculture sludge materials and products Drinking water sludge The Water Pathway Water 4 to agriculture or industry 2 8 Building 6 Fertiliser (non-ag Organic thereof waste added for agriculture Water 12 Effluent gas reuse 3 7 Paper & Cellul to wastewater Organic sludge waste added Gas Potable water 1 Upstream investments 6 Reused water for industry 3 7 Paper & Cellulose to wastewater sludge Drinking water sludge Gas 4 8 Building mate Non-potable water to agriculture Drinking or industry water sludge Rainwater harvesting Direct potable reuse 2 7 4 8 Building materials to agriculture or industry Wastewater Greywater recycling for 12 Effluent gas reuse Water Utility Pathways in a Circular Economy 3 8 Leakage / Water loss Reclaimed water non-potable reuse Products 12 Effluent gas reuse Greywater for agriculture 4 9 Reduction in water consumption Greywater and aquaculture Recovered materials 1 Resource efficiency 5 Bioplastics 9 Proteins & Feed Reused water for agriculture Rainwater 5 x Onsite treatment and aquaculture Organic matter Wastewater sludge and products 2 6 Fertiliser (non-agricultural) 10 Metals & Minerals thereof for agriculture Water Organic waste added 3 7 Paper & Cellulose 11 Human health products International Water Association to wastewater sludge Gas Drinking water sludge 4 8 Building materials to agriculture or industry 12 Effluent gas reuse SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 65 be centred around reducing costs for customers and minimising impact on the environment. The energy portfolio should aim to reduce carbon-based energy consumption, increase renewable energy consumption, increase renewable energy production and make a positive contribution 2 to zero-carbon cities. 4.5 Overcoming barriers World Business Council for Sustainable Development. e following chapters provide practical guidelines for “Business Guide to Circular Water Management: overcoming these barriers. eory and case studies Spotlight on Reduce, Reuse and Recycle.” Geneva. show how barriers can be overcome, and refer to tools and technologies for implementing solutions. Figure 7 This report, more catered toward businesses, presents the 5Rs of circular shows the 6 1 1 main barriers to circular water management 1 1 that is, to reduce, reuse, recycle, restore, and recover water management: and the 5Rs. water resources (figure B.2). 3 4 2 Figure 7. Barriers to circular water management and ways to overcome them Figure B.2 The five Rs of circular water management 1 1 1 1 3 Biosolids 4 to Energy Biosolids 5 to Energy 5 The Energy Pathway Energy saving at treatment plants Organic energy 1 Energy saving at treatment& distribution plants systems Organic energy 1 & distribution systems Heat Heat 2 2 Energy Energy reduction and recovery reduction at home and recovery at home Topographic energy Topographic energy 3 Electricity produced from distribution systems Other renewable energy 3 Electricity produced from distribution systems 4 Heat produced from distribution systems Other Water renewable energy Wastewater biosolids to energy production Recovered materials 5 4 (gas, electricity & heat) Heat produced from distribution systems Water 6 Renewable energy Wastewater biosolids to energy production Recovered materials 5 (gas, electricity & heat) 6 Renewable energy 13 International Water Association Source: International Water Association 2016. Source: World Business Council for Sustainable Development. 14 SUMMARY International Water Association CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 66 ING Bank. 2017. “Less Is More: Circular Economy Retain water Solutions to Water Shortages.” Amsterdam. • Invest in natural infrastructure upstream, such as wetlands and forestry projects able to hold water for long periods This report analyzes the impact of measures to decrease pressure on water • Set up water storage projects, such as aboveground water reservoirs or resources in six regions: northern India, California, Ghana, the United Arab rainwater harvesting Emirates, Bangladesh, and the Netherlands. The study concludes that, in those • Set up underground aquifer storage and undertake recovery activities six regions, the application of circular economy principles has the potential to • Increase water retention of the soil so that agriculture needs less water for save 412 billion cubic meters of water a year, which is equivalent to 11 percent irrigation of annual global water demand, or almost the entire water consumption in the United States. The circular water measures included in the analysis are classified under 3 Rs: reduce, reuse, and retain water: Reduce water demand and water pollution • Reduce water losses through leakages • Switch to water-efficient processes in industry • Use water-efficient irrigation techniques such as drip irrigation • Improve the water efficiency of existing crops (crop refinement) and switch to more water-efficient crops • Use saline water for irrigation when possible • Apply sustainable water pumping • Use more-water-efficient appliances • Prompt behavioral changes toward using less water • Use water in such a way that prevents water pollution (e.g., design indus- trial processes to separate dirty from clean water streams) Reuse water • Reuse graywater, which is nonpotable water that can still be used for many other purposes (e.g., in irrigation) • Treat and reuse black water, which is heavily polluted water (e.g., toxic industrial wastewater) that can only be reused after heavy treatment • Purify water through natural ecological processes, for example, through the use of wetlands (ecohydrology) SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 REFERENCES ANNEXES 67