Restoring Waters in the Baltic Sea Region
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1 Restoring Waters in the Baltic Sea Region A Strategy for Municipalities and Local Governments to Capture Economic and Environmental Benefits
2 Background: BCG actively involved in discussion on the Baltic Sea and state of the oceans 2013: Turning Adversity into Opportunity A Business Plan for the Baltic Sea 2015: Restoring Waters in the Baltic Sea Region A strategy for Municipalities & Local Governments 2015: Reviving the Oceans Economy - The Case for Action Focus of today _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 1
3 Introduction of today's focus report Commissioned by Zennström Philanthropies to better understand local benefits from restoring Baltic Sea waters Aim to encourage increased action on local level and inspire decision makers on what measures to implement Builds on municipality survey findings (~250 respondents), ~60 topic experts interviews & key stakeholder engagement _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 2
4 Conclusions 1. Local actions crucial to restoring the Baltic Sea, but 2/3 either unaware of problem or lack resources to effectively address it 2. The benefits of water restoration are both environmental and economic million in gross output can be captured between 2015 and 2030 for an average municipality 3. Multiple proven measures can be implemented to restoring the waters, and 40 percent costs can be saved if applying a structured approach when prioritizing measures 4. Best practice examples from leading municipalities show four actions crucial to becoming an attractive community _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 3
5 1,500 municipalities crucial to address eutrophication and restore the Baltic Sea waters Baltic Sea severely affected by eutrophication Country Municipalities in catchment area Total 1, _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 4
6 2/3 of municipalities unaware of Baltic Sea's state or lack sufficient resources to address it High Contribution to nutrient load reduction Unarmed Leaders <1% Executors ~30% Low Unaware ~25% ~45% Time _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 5
7 Conclusions 1. Local actions are crucial to restoring the Baltic Sea, but 2/3 are either unaware of the problem or lack resources to effectively address it 2. The benefits of water restoration are both environmental and economic million in gross output can be captured between 2015 and 2030 for an average municipality 3. Multiple proven measures can be implemented to restoring the waters, and 40 percent costs can be saved if applying a structured approach when prioritizing measures 4. Best practice examples from leading municipalities show four actions crucial to becoming an attractive community _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 6
8 270 million economic impact within an average municipality comparing two scenarios Total economic impact for an average municipality ( million) Impact at 2030 in Baltic Sea region Clear waters state jobs 0 # fulltime jobs 20 Water technology Tourism & Rec. fishing Real Estate ,900 Supporting Extra industry beneifts Total impact 2,800 Shipwrecked state _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 7
9 Additional potential for municipalities if stimulating innovation in region Municipalities can drive the innovation agenda Stimulate innovation Create company hub and R&D centers Use Baltic Sea as test bed Opportunity to test innovations Economic trading potential Innovations favors export opportunities International inspiration Singapore example Tripled water sector companies to ~150 Surpassed target of 11,000 jobs in water sector by '15 Grants from government of 190 million to >100 R&D projects Ninefold increase in R&Dcenters from 3 to _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 8
10 Conclusions 1. Local actions are crucial to restoring the Baltic Sea, but 2/3 are either unaware of the problem or lack resources to effectively address it 2. The benefits of water restoration are both environmental and economic million in gross output can be captured between 2015 and 2030 for an average municipality 3. Multiple proven measures can be implemented to restore waters, and up to 40 percent costs can be saved if applying a structured and prioritized approach 4. Best practice examples from leading municipalities show four actions crucial to becoming an attractive community _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 9
11 Prioritize measures within agriculture, wastewater, stormwater, and restoration ~90% of discharges Agriculture Wastewater Stormwater Restoration _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 10
12 Key recommendations for each action area and case examples from the region Key recommendation Municipality examples Agriculture Wastewater Cooperation with farmers to reach win-win solutions Complement targeted investments with policies By offering free advisory to farmers on best-practice farming to reduce tonnes of phosphorus and nitrogen By using a special type of reactor, a farmer reduces cost for fertilizers by recycling nutrients from wastewater Riga upgraded their wastewater plant which enabled nutrient reductions corresponding to 40% and 70% of Latvia's phosphorus and nitrogen reduction target Södertälje introduces policy to increase recycling of nutrients from scattered settlements _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 11
13 Key recommendations for each action area and case examples from the region Key recommendation Municipality examples Stormwater Restoration Nutrient reduction with additional benefits Remediating environmental conditions & damaged areas Berlin use a Biotope Area Factor policy, making all new buildings include a special share of green areas Helsinki has introduced a policy for construction companies, giving them the responsibility for cleaning run-off from explosions rich of nitrogen Värmdö restored a wetland with estimated value of ~ 2 million Improved biodiversity and recreational value Submariner lists innovative uses of Baltic Marine resources _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 12
14 40% costs saved by using a structured approach for prioritization Total cost per kg P reduced ( /kg P) 1,200 1, Agricultural municipalities can save most costs Mid-sized city ~10% Agricultural municipality ~40% Archipelago municipality ~20% 0% 20% 40% 60% 80% 100% % of local nutrient reduction target (kg P) _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 13
15 Conclusions 1. Local actions are crucial to restoring the Baltic Sea, but 2/3 are either unaware of the problem or lack resources to effectively address it 2. The benefits of water restoration are both environmental and economic million in gross output can be captured between 2015 and 2030 for an average municipality 3. Multiple proven measures can be implemented to restoring the waters, and 40 percent costs can be saved if applying a structured approach when prioritizing measures 4. Best practice examples from leading municipalities show four actions crucial to becoming an attractive community _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 15
16 Four actions crucial for restoring the waters and becoming an attractive community Set strategic direction Engage local stakeholders Cooperate across borders Resources and funding Define ambition for nutrient reduction and develop the municipality strategy for how to reach the goals Raise public awareness and engage with local initiatives and organizations Cooperate with other municipalities and organizations Secure sufficient resources, competence and long-term funding _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 16
17 Next step: Implementation support through the City Accelerator program More Information Barbara Jackson Programme Director Race For The Baltic The programme will support cities to Identify high-priority and high-risk areas with top global experts Navigate through the many cost-effective measures Set nutrient reduction targets for your city Create a local Baltic Sea Action Plan - priortise and implement Build an organisation that fosters innovation & solutions, especially around nutrient recycling Develop alliances with local stakeholders Package and market your successes _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 17
18 Thank you bcg.com bcgperspectives.com _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 18
19 Key questions for sustainable impact For municipalities and local organizations For international and national stakeholders 1 What is our municipality starting point, and what is our goal and strategy going forward? 4 How can the Baltic Sea Action Plan, nutrient reduction targets, and implementation programs be translated to a local level? 2 When we commit to addressing eutrophication in our municipality, who will be the key stakeholder we should engage? 5 How can national cross-sector collaborations within areas such as agriculture, facilitate cooperation among local stakeholders? 3 How do we ensure that we have sufficient funding and resources to execute a more ambitious action plan? 6 How can national bodies, together with local stakeholders, develop the region to become a hub for water technology innovations? _RestoringWatersInTheBalticSeaRegion_BalticCenter_5th June_vF.pptx 19
Restoring Waters in the Baltic Sea Region
Restoring Waters in the Baltic Sea Region A Strategy for Municipalities and Local Governments to Capture Economic and Environmental Benefits 4.3.2015 Introduction This report was commissioned by Zennström
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