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WQ Market Monthly

August 18, 2010    

Water Photo

From the Editors

Seems as if many of us have been distracted by the oil spill in the Gulf. The photos of oil soaked birds, idle fishing fleets, and black globs of oil floating on the surface of the coastal waters are painting an unwelcome collage of misery across many Gulf communities. Perhaps it’s the focus on the Gulf that has left us wanting for more news on watershed management, water markets and overall water policy.  

Water has certainly been on the radar screen at the United Nations, which recently declared access to water as a human right. Exactly how that will change political action leading to universal access to clean water and sanitation will be years in the making.

With demand for clean water expected to exceed supply by some 40 percent by 2030, perhaps market forces will play a greater role, along side the actions of governments and NGOs, in providing clean, affordable water to all. Meanwhile with fires raging in Russia and floods devastating Pakistan and China (albeit prompted by different factors) policy makers, practitioners, NGOs and donors are honing in on climate change and the threats to water sustainability.

Closer to home, we’ve been distracted by work on the recently released “State of Watershed Payment: An Emerging Marketplace” which hit the presses in late June during the Katoomba meeting in Hanoi, Vietnam.

A sample of the research findings:

•    In 2008, a total of 288 PWS programs were identified (216 PWS and 72 WQT). Far fewer programs recorded transactions, numbering about 127, yielding an estimated US$9.3 billion dollars in watershed protection activities.

•    Over the entire span of recorded activity (roughly 1985 – 2008), total transaction value is estimated at just over US $50 billion, impacting some 3.24 billion hectares. This total is sure to have been larger had project developers provide more complete and comprehensive details about project-level transactions.

•    Between 2000 to 2008 in China alone, total programs grew from 8 to 47 and transactions went from just over US $1 billion to US $7.8 billion. Latin America boasts the most programs totaling 101. Between 2000 to 2008 total active programs in the region grew from 7 to 36 and transactions grew from US $6.2 million to roughly $US 31 million.

•    In 2008, WQT yielded just under US$ 11 million compared to the US$ 9.246 billion for all other PWS. The fact that water quality trading registers transactions at just under US$ 11 million dollars in 2008 is attributable to two key factors: 1) trading schemes flourish when driven by effective water quality standards. In the absence of those standards, trading programs will likely flounder and fall short of performance requirements and market expectations; and 2) transaction data from trading programs is not routinely or transparently reported, making the task of tallying transactions, such as for this report, a monumental job.  

•    Governments are the most significant player in terms of supporting the current activity in the protection of watershed services.

If you have yet to access the report, visit the landing page
here.

— The Ecosystem Marketplace Team

For questions or comments, please contact newsletter@ecosystemmarketplace.com


News

GENERAL

EPRI Holds Quarterly Update on Ohio River Basin Trading Pilot Project
On August 11, the Electric Power Research Institute held its quarterly webcast to update stakeholders and interested parties on the status of the pilot project. This webcast provided an overview of the important project activities from the past three months including project funding announcements, project implementation plans, and other key updates.  Highlighted was a summary of recent agriculture outreach activities, an update on the Interstate MOU, and on overview of their re-designed website, launched in July. More information can be found in their latest newsletter (PDF, 839 KB) or on the project website.
 
Johns Hopkins Announces Global Water Magazine
With its inaugural issue in July, Johns Hopkins released its free, online magazine to cover critical issues in meeting the global water challenge. The magazine will be published every other month.  Check out the first issues here.
 

DOMESTIC MARKETS

Climate Change to Threaten Access to Water
According to a recent report, climate change will increase the risk of over-allocating future water supply across the United States. The report, based on research from scientists at Tetra Tech, Santa Clara University, and The Nature Conservancy, is a county-by-county analysis of water supply sustainability risk based on five criteria: 1) use of renewable water; 2) sustainable groundwater use; 3) susceptibility to drought; 4) growth in water demand; and 5) future increased need for water storage. Based on this assessment, nearly 1/3 of all U.S. counties will be at extreme or high risk of water supply sustainability by 2050— triple the number that would be at risk without climate change impacts. More than 70% of all counties will have at least moderate risk to water sustainability.

-
Read more from the Natural Resources Defense Council.
 
Toilet Maker Promotes Water Conservation, Drop by Drop
American Standard, best known for manufacturing bathroom fixtures, is promoting water conservation across the US, fixture by fixture, in an effort to save two billion gallons of water by the end of December 2010. The Responsible Bathroom Water Conservation Tour has been mobilizing across the country since April 2010, and is nearly halfway to its goal. Since water conservation is rooted in household use, the Tour shows how an average four-person household can save some 48,000 gallons of water per year with water-saving bathroom fixtures. They have enabled an online calculator to help calculate gallons saved.

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Read more in a press release on World-Wire.
 
Man vs Nature: Wetlands Similar at 15 Years
A 15-year experiment in an outdoor “laboratory” on Ohio State University’s campus shows that naturally colonizing wetlands can offer just as many, if not more, ecological services as will wetlands planted by humans, according to an OSU press release.

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Read more at Environmental Protection.
 
California Punts on Water Bond Delaying Upgrades to Decaying System
An historic Water Bond, priced at over $11 billion, was put on hold by California lawmakers in early August until the election of 2012, further postponing investment in the state’s ailing water system. The bond, which requires voter approval, is part of a series of water-related bills approved by the legislature in 2009 that includes funding for ecosystem restoration, water conservation, groundwater monitoring and construction of critical water storage such as dams and reservoirs.

-
Read more from The Wall Street Journal.
- Read a special report by the Pacific Institute on the details of the bond.
 
Getting Paid to Protect Forest Lands Appeals to Most Landowners
A survey conducted by the Texas Forest Service reveals that the vast majority of forest owners would consider keeping their land forested if they got paid for doing so. Though not fully developed, environmental markets are designed to provide a monetary reward to landowners to maintain their forests and, in turn, provide society with nature’s benefits such as clean water, clean air, wildlife habitats, carbon sequestration and even scenic beauty and recreation.

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Read More in The Cherokeean Herald.
 
Alliance for Family Farms Promotes Effective Water Management
In a new report, “Western Water Management Case Studies” recently released by the Alliance for Family Farms, a series of case examples demonstrating creative water management strategies across many western states have been developed as a practical tool for policy makers and water users who are struggling with the complications created by a host of new rules, policies and prescriptions for water usage and the environment.

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Read more about this study and another on western water resource management.
 
Nitrogen Pollution Choking Cape Cod Waterways
Nitrogen levels are rising in waterways on Cape Cod suffocating the vegetation and marine life in saltwater ponds and estuaries, creating an environmental and infrastructure problem that stands to threaten the shellfishing industry, the tourist economy and the beaches that lure so many summer visitors. Local governments, under federal mandate to fix their polluted waterways, have spent years creating plans to clean up the wastewater, largely through sewers and clustered septic systems.Most of the efforts have gone nowhere, stifled by disputes over science and over who should pay for such an expensive public works project.
 
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Read more in the NY Times.
 

GLOBAL MARKETS

UN Declares Access to Water a Human Right
In late July, the United Nations General Assembly “declares the right to safe and clean drinking water and sanitation as a human right that is essential for the full enjoyment of the right to life.” The declaration comes in advance of a September meeting to review the Millennium Development Goals (MDGs) which include those addressing water and sanitation. Member countries are urged to “scale up efforts to provide safe, clean accessible and affordable water and sanitation services for all.” By the numbers, the declaration passed with no votes against it but 41 abstentions including the US, Great Britain, and Australia.

- Source: OOSKA News, International Water and Development Weekly, August 11, 2010. Vol 2, Issue 30.
 
Nature Conservancy Expanding Water Funds in Latin America
The Nature Conservancy (TNC) is calling for the expansion of the popular water funds as an effective way to finance watershed management. Their current portfolio includes 15 funds and seven water producer initiatives in Ecuador, Peru, Bolivia, Colombia and Brazil. The funds are paid for by water users, in exchange for water, which are then invested in efforts to preserve freshwater resources, mostly linked to forest conservation.

- Source: OOSKA News, International Water and Development Weekly, July 14, 2010. Vol.  2, Issue 26.
 
Vietnamese Farmers Sue Over River Pollution
An unprecedented legal suite has been levied by farmers against a Taiwanese food additive producer over long term, persistent dumping of untreated wastewater into rivers which threatens the farmers’ livelihoods. The Vietnamese government is investigating and says it will support the farmers’ suit.

- Source: OOSKA News, International Water and Development Weekly, August 11, 2010. Vol 2, Issue 30.
 
Kenya “Pumping Up” Spending on Sustainable Development
To hasten the country’s recovery from the global economic crisis and a regional drought, Kenya’s government is pumping money into the economy by investing heavily in agricultural, energy and water and sanitation projects.

-
Read more from E&E.
 
Scaling Down for Greater Water Quality Gains
Dutch interests have been experimenting with smaller-scale, targeted water quality projects, seemingly with good effect. According to researchers in the EU, a shift towards small-scale environmental management in sensitive areas is now needed to ensure further improvements to water quality. Also needed, better impact data.

-
Read more from a Science for Environment Policy special issue. (PDF)

 
ADB Seeds Wastewater Treatment in China’s Wuhan Province
The Asian Development Bank is helping finance the Wuhan Urban Environmental Improvement Project to treat and dispose of sewage sludge and rehabilitate polluted lakes and water channels. The project, said to benefit up to 3 million residents of the municipality, aims to be a model for managing wastewater sludge throughout the country and there’s a market for the recycled sludge. Once dried, the recycled sludge is used in construction materials and as a soil conditioner.

Source: OOSKA News, International Water and Development Weekly, July 14, 2010.  Vol. 2, Issue 26.
 

JOBS

Fall Intern Positions with Ecosystem Marketplace

Ecosystem Marketplace is currently looking for interns!  Part-time and/or full-time positions are available.  Closing date for applications is September 1, 2010.  Check here for more information on the available positions and corresponding responsibilities.

 

EVENTS

World Water Week, Stockholm, Sweden, September 5-10, 2010
The World Water Week in Stockholm is the annual meeting place for the planet’s most urgent water-related issues. Organized by the Stockholm International Water Institute (SIWI), it brings together experts, practitioners, decision makers and leaders from around the globe to exchange ideas, foster new thinking and develop solutions. Read more about it here.
 
ACES, Phoenix, AZ, December 6-9, 2010
ACES, A Community on Ecosystem Services, brings together government, non-governmental organization, academia, tribal, and private sector leaders to advance the use of ecosystem services and related science in conservation, restoration, resource management, and development decisions. Learn more about the event here.

 
 
 

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