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Presentation outline
I. Challenges for Sustainable Development
 Climate change as a planetary boundary
 Eco Footprint
 Environmental Risk and Economy
II. Green Economy and Water
 Status of Water Supply and Demand
 Green Growth and Decoupling
III. Water- Energy-Food (WEF) Nexus
 Water and Energy
 Water and Food
IV. Water and Economic Effect
 Water Market ; Current and the future
 Water Industry and Economic Effects
 Opportunity for the BIG Business
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I. Challenges for Sustainable Development
Climate change as a planetary boundary problem
Planetary
boundary
Source: Stockholm Resilience Centre Website
Kojima Satoshi, “ Challenges for Sustainable Development” ChungAng university
Workshop presentation paper, 2015.2.9

Exceeding boundary indicates potential of irreversible catastrophic change of
ecosystems.
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 Eco Foot Print; Beyond the limits


Korea’s per capita footprint is about 4 times larger than the world average
World total footprint is 1.2 times more than the total global surface.
Korea
WWF(2006) Living Planet Report 2006
Ecological Footprint: Total area of land required to sustainably produce,
assimilate foods, energy, and the other materials consumed in a country.
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Climate Disaster and Economic Cost
 Science ; Cost of Climate Change will be 1.2 trillion dollar per year.
Every Year in the world, 50 Billion Dollar will be paid for the insurance
damage

Natural Disaster and Loss, 2014
Source: Science, “ Climate Change the greening of Insurance,” 2012.12.24
MuniRe, “Natural catastrophes 2013, Analyses, assessments, positions 2014 issue,” 2015 Report
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 2013, 890 loss had registered with US$ 135bn and insured losses of
US$ 35bn. 2013 can be described as a relatively moderate
year but still exceeded the ten-year (790) and 30-year (630) average
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 Environmental Risk And Economy
 World Economic Forum (2014) Most Risk in the future ;
- Climate change, Extreme Weather Event, Water Crisis, Unemployment
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2015 Global Risks Co-Relation Map
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II. Green Economy and Water
In 2011 the United Nations Environment Programme(UNEP)
reported, “if nothing changes, humanity will demand 140 billion
tons of minerals, ores, fossil fuels and biomass every year by 2050.
This is three times our current rate of resource consumption, and
far beyond what the Earth can supply. We need to fairly rapidly
learn to decouple natural resource use and environmental impacts
from economic growth.”
Coping most successfully with resource depletion requires a broad
range of strategies. These include ;
- improved recycling, the end of our disposable culture,
- a return to taking care of things and repairing them
- and making investments in renewable energy sources
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
Water Situation Report from WRI and Aqueduct, (2014)
 Food and Beverage Water in Asia is getting serious ; India, china, Central Asia
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 Agricultural Water in Asia ; central Asia, Northern china, Northern India is most risk countries
 Mining Water in Asia ; India, Northern China, Vietnam and Central Asia is most risk countries
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Reasons of Water Shortage
- Asymmetric distribution of water
- Bad Water quality
- Increasing water consumption per capita (Population Increase)
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Evidence of Decoupling;
Gross Domestic Production and Material Productivity, 1980-2010
13

UNEP assumptions

Green scenario A: 1-2% of global GDP channeled to green investment.

Focus: agriculture, buildings, energy (supply), fisheries, forestry, industry, tourism,
transport, waste & water

Green scenario B: 2 % of global GDP is invested, prioritizing energy and CC.

BAU: 1-2% of global GDP invested across the economy
Projected trends in annual GDP growth rate from 2010 to 2050
Source: UNEP Green Economy Report (2011)
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III. Water- Energy-Food (WEF) Nexus
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 Minimum Consumption per Year ; 2,000 liter, But Population increase
80 Million per year. In 2025, 8 billion people (30 % more than 2000)
 At present, 900 million people could not access drinking water.
In 2025, 34% of total world population(2.7 billion people) will face lack of
drinking water
 Rate of Urbanization (1950), 29.1%/ year, (2007) 49.4%, (2025) 57.2%
 Water withdraw (1950) 1,480km3 - 2007 3,840 km3 2025, 5000 km3
Population and Water Consumption
Map of Water Shortage
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 Water and Energy
20,000
18,000
17,652
16,000
million kW-h
14,000
12,000
10,000
8,000
6,230
6,000
5,521
5,131
3,910
3,846
Chemical & Allied
Products
Oil & Gas
Extraction
4,000
2,000
0
Water (Irrigation
& Pumping)
Petroleum
Refining
High Priority
Electrical &
Electronics
Food Products
Priority Only In Collaboration
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18
19
20
21
WATER
ENERGY
Membrane
Other
O&M*
~33%
Capital
~33%
Energy
~33%
Thermal (MED)
Other
24%
Capital
31%
Energy
45%
* Membrane replacement,
Chemicals, Labor,
Maintenance
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23
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IV. Water and Economic Effect
 Water Market Situation
 World Water Market will be increasing from 535 billion dollars (2012) to
689 billion dollars (2018), 865 billion dollars (2025)
- World Water Market achieve 3% growth compared to 2013. But
- After 2015, Annual yearly growth rate will be expected 5%
 Average Annual Growth Rate is 402% from 2012 - 2018
 Asia, South America, Middle East ·Africa ·Eastern Europe;
Market Share is increasing (’10 19% -> ’17 21%)
(Unit; billion $ U.S)
Region
2009
2010
2011
2012
2013
AAGR
United States
287.5
289.7
305.7
320.3
328.0
3.4%
Western Europe
244.8
254.4
259.0
261.2
265.7
2.1%
Japan
100.1
104.0
103.3
106.9
109.1
2.2%
Rest of Asia
64.3
71.8
78.0
84.1
91.0
9.1%
Mexico
11.70
12.39
12.96
13.48
14.05
4.7%
Rest of Latin America
24.8
27.0
28.5
29.8
31.6
6.3%
Canada
19.6
20.2
21.0
21.6
22.5
3.5%
Australia/New Zealand
12.9
13.3
13.6
14.2
14.7
3.3%
Central & E. Europe
12.8
13.2
13.7
14.1
14.7
3.5%
Middle East
13.9
16.0
17.5
18.9
20.3
3.5%
Africa
8.3
9.5
10.3
11.1
12.0
10.0%
Total
801
832 Survey, 2014
864
Source; Environmental
Business Journal
2014 Snapshot
896
924
9.7%
Size of Market is 5th ; (1) Petro. 1,358 billion $, (2) Automobile 1160 billion $,
(3) Electricity 600-800 billion $, (4) IT 600- 650 billion $
(5) Water Market ; 550-600 billion $, (6) Tele Commun. 500-600
Rank of Growth Prospects by Global Geographic Region; 2014
Source; Environmental Business Journal 2014 Snapshot Survey, 2014
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The Global Environmental Market by Region 2008-2012, $ bil. and Growth
Source; Environmental Business Journal 2014 Snapshot Survey, 2014
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Environmental Market in Asia Pacific (1999-2014)
(Unit; billion $ U.S)
Source; Environmental Business Journal 2014 Snapshot Survey, 2014
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Global Environmental Market by Segment 2004- 2014e, ($ bil.)
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Water and Waste water Markets of 12 “ Best Prospects” countries (2013)
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World Water Market and Management Situation , 2013
Source; GWI, “World Water Market Situation, 2014”, 2014
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China Water Market and the Future
- Water Supply is relative good and water treatment rate is 41.6%
- 500 million people can have service for the water treatment, but water
pollution is still problem
- Water market (2013), 58 billion dollars. 8.2% Up compared to 2012
- In 2014, 63 billion dollars. 8.4% Up compared to 2013
- In 2018년 ), 91.1 billion dollars will be (AAGR , 9% )
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China Water Market and Future
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 Evaluation of Attractive Water Market based on Value Chain by Region
Clock wise; Parts, water and Water treatment management, Industry, and Desalination
Source; KEB, “ Korean Water Industry and Its Foreign investment Strategy,” 2014.2
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- 22 countries ; EU (9,) U.S.A (1), Brazil, (2), China (9), Philippines (1)
10 Million Population Served Water Companies
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NO.
Company
Country
Sale(Mill.)
Population
(10000)
% of Forei
gn Busine
ss
36
Business Performance Comparison in Value Chain of Water industry, 2012
Source; KEB, “ Korean Water Industry and Its Foreign investment Strategy,” 2014.2
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 Water Industry and Economic Effect ; National Cases
Case 1: U.S.A
 From 2014 to 2023, operating and capital expenditures of the Water Industry
in the
U.S.A will generate $52 billion per year
 National economic contribution of $524 billion over the 10 years.
- Create approximately 289,000 permanent jobs.
 Every $1 million in direct spending by the utilities supports 16 jobs throughout
all sectors of the economy
$1M = 5 Jobs (Direct) + 11 jobs (Indirect and induced) = 16 Jobs (Total)
Economic Impact of Utilities Employment Labor
Income Output
Employment
Labor income
Output
Aggregate Impact
over 10 years
2.9 million job-years $189 billion
$524 billion
Annual Impact
289,000 jobs
$52 billion/year
$19 billion/year
Source; WERF “NATIONAL ECONOMIC & LABOR IMPACTS OF THE WATER UTI LITY SECTOR; EXECUTIVE REPORT,” 2014.9
Case 2: UK
 The total economic impact of the sector in 2012/13 is estimated to be £15.2
billion.
 This activity supports 127,000 jobs directly or indirectly.
- 4,000 construction jobs, 3,000 jobs in transport and 14,000 jobs in distribution.
- 4.5 billion on investing in assets (tackle leakage, flooding, drought.)
 In 2012/13, companies spent £5 billion on operating expenditure.
 In 2012/13, the industry took on almost 200 apprentices in a wide range of
roles.
 Well over £1 billion was spent on reducing the risk of sewer flooding.
 Overall cost on average to consumers for water and sewerage is around £1 a
day.
Uk Water and Sewage sector economic impact; GVA and jobs
Sector
TOT.
Water
&
sewage
Business
Service
Other
service
transport
distribution
Hotels
catering
Const.
other
GVA
15.2
8.7
3
0.6
0.2
0.7
0.2
0.3
1.3
Jobs
127K
42000
34000
12000
2800
14000
4400
4000
15000
(ℒ bn)
Source; Deloitt, UK, “Tapping into growth: Economic impacts of water and sewage sector in UK. “ 2014.9
Case 3: India,
 In 2010, 800 million people worldwide were without
improved access to water and 2.5 billion people were
without access to sanitation ;
 World Bank and the Country Evaluation Analysis (CEA) uses
Disability Adjusted Life Years (DALYs). DALYs measure the years of
healthy life lost to illness and premature mortality, with a
weighting function that adjusts for the impacts of death and illness
at different ages. (Marie, etc. 2014)

India, uncontrolled pumping of groundwater for
irrigation has led to unsustainable exploitation rates.
Almost 60% of Indian districts are facing groundwater
problems either quality and/or quantity, overdraft in the
west.
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Case 4: Africa, Latin America
 Africa and Latin America stand to gain the equivalent of 5% or
more of their annual GDP
 Economic benefit of providing universal access to Brazil, Russia,
India and China would amount to more than USD125 billion per
annum, about 1% of their joint 2010 GDP.
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 (Shah, 2013) have shown that between 2002 and 2008,
- water loss; about 109 cubic km of water, decline water table ;
3-5 cm per annum
Costs of Water Degradation as per cent of GDP
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 Benefit of achieving MDG gains amount to more than USD 56 billion per
annum between now and 2015
 Achieving universal access generate USD220 billion annually. (Left Table)
 Providing universal access to water for all poorly-serviced populations will
cost at least USD175 billion(low cost tech.) until 2050
 Additional USD550 billion require for universal access to sanitation
(Right Table) until 2050
Absolute annual economic gains per region
(in million USD2010)
Capital cost range for improved access
to water supply and sanitation
Source; Marie-Agnes Jouanjean, Josephine Tucker, Dirk Willem te Velde, “ Understanding the effects of resource degradation on
socio-economic outcomes in developing countries,“ 2014.3
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 Water Industry and Economic Effect ; A Country Cases
Case 1. Philippines Angat Project – K water ;
- 218 MW Capacity, - Total Investment ; 469 Million US $
- Performance; Most of Supply for the Philippines Electricity and water
Case 2. Pakistan patrind Project – K water ;
- 150 MW Capacity, - Total Investment ; 436 Million US $
- Performance; First PPP Electricity and Water Project
Source, : Ko jaemyung, “ ODA Strategy Seminar,” 2015.2.12
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Case 3; Philippines Jalaur River Multipurpose, USD 208 Million
- Increase irrigation, productivity, regional tourisim, etc
- Hire local people
Source, : Ko jaemyung, “ ODA Strategy Seminar,” 2015.2.12
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Case 4; GMS (Greater Mekong Subregion, 4200 Km)
Source, : Ko jaemyung, “ ODA Strategy Seminar,” 2015.2.12
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 Opportunity for the BIG Business
 Improved water supply/sanitation/management boost up economic growth
 And Contributes to poverty reduction.
- Poor countries enjoyed annual average growth of 3.7%. (SIWI, 2007)
 Economic growth is boosted when water storage capacity is improved.
 Investing in water; increase production& productivity within economic sectors.
 Economic benefits of improved water supply/sanitation> investment costs
 Water Industry is BIG industry in the future such as ;
1. Drinking Water (10% of Global Demand) ;
- Smart Water Grid , Prevention of Leaking, Saving
2. Industrial water (20% of Global Demand) ; Water Saving Technology
3. Agricultural Water (70% of Global Demand) ; Irrigation
4. Common Area;
- Low Cost Desalination.
- Small and Medium Scale Dam Contruction, Large Hydro,
- Waste Water treatment
- Water Saving Plant
- Water Collection System in Urban Area
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References
Deloitte, Water/UK, “ Tapping into growth; economic Impact of the Water and sewage sector in the UK,“ 2014.3
Frontier Economic, HSBC, “ Exploring the links between water and economic growth ; A report prepared for HSBC
by Frontier Economics: Executive Summary,” June 2012.
Global Water Partnership, “Water in the Green Economy, “ PERSPECTIVES PAPER, 2012.6
KIM, Jeongin, Chang Sukwon “ Water-energy-Food Nexus,” K-Water policy Forum presentation paper, 2013.11
KIM, Jeongin, “Green Growth Main Features and Key Progress: Green Growth Policy of Korea,”
IETC, CIFAL, 2013.4.4
KIM, Jeongin,, “
Energy Self-Reliance Village in Korea,”
KIM, Jeongin,, “Resource Constraints in ASIA and It’s Impact ,” BASF Asia-Pacific Region workshop,
2
Marie-Agnes Jouanjean, Josephine Tucker, Dirk Willem te Velde, “ Understanding the effects of resource
degradation on socio-economic outcomes in developing countries,“ 2014.3
SEI, “Understanding Nexus,” 2012.10
Shah, M., “ Water: Towards a Paradigm Shift in the Twelfth Plan,” Special Article, Economic and Political Weekly,
Vol 03. 2013
www.gwptoolbox.org
www.odi.org
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Thank you for your kind attention
[email protected]
Source : United Nations ESCAP Report
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