How will Covid-19 change the water industry?

Christopher Gasson, Publisher, Global Water Intelligence

Capital expenditure on water and wastewater utility infrastructure is likely to be relatively resilient in the face of the Covid-19 outbreak according to the latest global water market update by GWI WaterData. Although we have reduced the expected total spend in 2020 by 6.8% to $246 billion compared to our forecast in January 2020, the figure is only marginally lower than the $249 billion figure achieved in 2019. Currently we are expecting 2021 utility capex to be $258 billion.

In part this reflects the fact that capital projects in water have a long lead time and budgets are often fixed well in advance and not discretionary. It also reflects the fact that utilities have by-and-large risen to the challenge of working through the crisis. Some argue that this strength may become a weakness because the water sector will not be able to claim that it needs stimulus spending as urgently as those sectors of the economy which have been most brutally affected by the virus.

From a water perspective, the greatest area of concern is in sub-Saharan Africa. Governments in this region have typically responded to the virus with extreme lock-downs and promises of free or reduced price water. Few have compensated utilities for this loss of income and there is a real danger than as many as a dozen utilities in the region could cease piped water supply during 2020 (and instead revert to tanker-based supply to cash paying customers).

The chart below summarises GWI WaterData’s expectation of year on year capital expenditure growth in water during 2020 and 2021 in a major water markets:

 % year on year change in capex by country

This forecast is based in part on surveys GWI has undertaken during the crisis. We also took the opportunity to ask utility leaders where they saw the upside in the crisis. The top response was “Increased investment in automation”, followed by “greater recognition of the value of utility services”.

We are definitely optimistic about the growth of automation and other digital services: we think that the sector will defy any Covid-related downturn, with total spend growing from $32.6bn in 2019 to $33.9bn in 2020 and $36.8bn in 2021. As for recognition – it is difficult to judge, but in the long term much more important for the growth and well-being of our industry.   

Join the ENOLL Digital Living Labs Days

In the context of the ENOLL Digital Living Labs Days, Water Europe is hosting a dedicated session on the Water-Oriented Living Labs(WoLLs) and the WoLLs Network that aim at supporting and enhancing the development of WOLLs in EU and beyond. The session will address the role of WE WoLLs in enabling the twin effort for a European Green Deal and the Europe Fit for the Digital Age and will also try to identify a model which can be applied to similar initiatives for scale-up ambition and replication.

In co-creation with the audience, we will develop the main challenges and drivers of the sustainability of (Wo)LLs, on how (Wo)LLs can contribute to the achievements of the EU Green Deal for a resilient society, and the planned actions to foster the development of (Wo)LLs and meet the EU Green Deal prospects.

The session will be moderated by Andrea Rubini, Water Europe Director of Operations with the participation of Jens Prisum from Call Copenhagen and Prof Chrysi Laspidou from the University of Thessaly, respectively Leader and Co-Leader of Water Europe Smart Cities Vision Leadership Team.

The event will be online and access to the session is possible via this link with the payment of a nominal fee through this code SUCTDLLD2020.

For more information please contact Andrea Rubini.

Circularity in water management: the motto for the next months

Water has been a key topic with several discussions during 2019-2020. The revision of the Water Reuse Regulation is not completed, opening up new opportunities through the definition of the minimum requirement for reclaimed water to be used in agriculture and hence reduce the pressure on water bodies and groundwaters. 

In June, the Commission also announced that the WFD will not be revised, focusing on the necessity to meet the targets. W.E. is glad that the voice of the innovative water sector was the heart and our fruitful campaign was impactful, particularly through the coalition “Water Is everyone’s business” in which several WE members participated actively to preserve high standards.

In July, the European Council reached an agreement on the 2021-2027 budget and the Next Generation EU tool. The German presidency welcomed this consensus between the 27. Von der Leyen also welcomes the agreement despite her regrets that the European Council had made far-reaching adjustments that decrease the innovative part of the budget. 

The European Parliament is more critical on some of the main aspects of the agreement, especially on the long-term perspective, where key programmes have been considerably cut, affecting seriously investment, and reducing resilience. This agreement contains a drastic reduction on pillars 2 and 3 from NEXT EU generation, with the suppression of the additional financial support for the EFSI, New EU4health and the external action and reductions affecting RescEU and HorizonEurope.

In the following months, water management will be a core topic with two dossiers: Industrial Emission Directive (IED) and Urban Waste Water Treatment Directive (UWWTD). On this context, WE is ready to voice the importance of fostering innovative solutions to achieve a Water-Smart Society in Europe.

Tomas Michel, Editorial: Summer Edition 2020

Dear Water Europe Family,

After some days of rest, we are ready for a new season. Unfortunately, so will be COVID-19, keeping up the challenge of delivering maximal value to our members, despite the difficulties.

Despite COVID-19, WIE2020 took place in June with the largest participation ever. This (first) digital edition well exceeded our own and participant´s expectations. Over 500 participants joined us for 5 days online during an innovative water week with 5 plenary sessions, 6 Water Europe Innovation Awards sessions, 2 side events and 16 Working Group meetings. More than 200 B2B meetings took place and participants visited 15 virtual booths at the digital exhibition area. Digital has come to stay, and we are very proud to have been able to offer our community this digital experience, overcoming the COVID-19 challenge, turning adversity into opportunity. If you missed WIE2020 or you wish to remind yourselves of the key highlights and messages of the conference, check out our new YouTube video.

Following the 2020 Annual General Meeting, WE has a new Board composition for the period 2020-2021. In line with the new governance adopted five Vice-Presidents will be elected by the Board in September to lead different portfolios according to the main priorities of Water Europe. At WIE the Water Europe Annual Report, presenting our association´s progress, was released. This year, we have gone one step further and have launched our report in an innovative and interactive web format. Check it out and browse online all our activities and developments!

The past season ended with the launch of the Water Vision Implementation Strategy 2020-2027 entitled ‘Water Europe contributions to the European Green Deal and Horizon Europe’. This new publication stresses how the WE Vision and SIRA relate to, and feed the renewed European strategies and policies, with a strong focus on the European Green Deal and the Horizon Europe.

To support this strategy, our Working Groups and Vision Leadership Teams are working and collaborating to produce white papers that will be used to support WE’s advocacy activities towards a Water-Smart Society with science-based arguments. With new incorporations and a reorganization of our staff, this essential activity will be further strengthened and better supported by WE.

Water Oriented Living Labs are an essential priority of the WE strategy to drive water innovation and market uptake. Thus, from the 2^nd to the 4^th of September, Water Europe will participate to the ENOLL Digital Living Labs Days.

To increase the visibility of running or recently closed projects, and to strengthen their collaboration with the EC and other stakeholders we have created a new event ‘Water Projects Europe’ and scheduled its 1^st edition from the 5^th to the 9^th of October. This edition will be dedicated to the topic ‘Industrial Water Reuse’.

Water Knowledge Europe on Horizon Europe 2021 will take place from the 14th to the 18th of December 2020. The ultimate format for this event, largely based on our big family coming together and exchanging ideas and opportunities, still depends on the COVID-19 status we shall encounter at the time. Yet, I am sure it will be, as usual, a success.

Don’t miss out on our guest editorial article below by Christopher Gasson, keynote speaker of WIE2020.

Stay safe!

Germany’s 2020 EU Council presidency hosts Citizen Science SDG Conference

Germany’s 2020 EU Council presidency is hosting a hybrid conference on the 14th and 15th of October 2020 under the topic ‘Knowledge for Change: A decade of Citizen Science (2020-2030) in support of the SDGs’. The conference will take part in Berlin or online. 

A public Citizen Science Festival organised by Wissenschaft im Dialog (WiD), the European Citizen Science Association (ECSA) and the Museum für Naturkunde Berlin (MfN) will take place as part of the conference on 14-15 October 2020 at the Kulturbrauerei in Berlin.

The Citizen Science Festival 2020 follows the same themes as those of the international conference and aims to show how citizen science can contribute to meeting the Sustainable Development Goals (SDGs) and achieving a more sustainable society. 

10 German citizen science projects and 10 citizen science projects from Europe and beyond will be invited to showcase their projects and results at market stands and invite visitors to the festival to interact and participate.

Visitors can discover exciting research and exchange ideas. A curated complementary programme will include lectures, workshops, hands-on activities and science ‘slams’. 

Find out more and register here: https://www.cs-sdg-conference.berlin/en/

BioAzul CEO Antonia Lorenzo selected as Leader in Action by UN’s Women’s Empowerment Principles

The CEO of BioAzul, Antonia Lorenzo Lopez, has been selected as a Leader in Action by the Women’s Empowerment Principles, an initiative established by United Nations Global Compact and UN Women.

The Women’s Empowerment Principles are a set of Principles offering guidance to businesses on how to promote gender equality and women’s empowerment in the workplace, marketplace, and community.

Antonia Lorenzo plays an important role as a Water Europe’s ambassador in her position as the leader of the Working Group (WG) Water and Agrifood. The scope of this working group focuses on good practices and innovative solutions to improve sustainable exploitation and stewardship of water sources by involving the water sector, the food industry (e.g. processing), and the agricultural sector in finding synergies that boost cooperation and exchange of knowledge between these relevant sectors.

Likewise, the WG seeks to pave the way for the implementation of appropriate solutions by improving the framework conditions (e.g. better regulations, funding, water quality and quantity, social and economic aspects, etc.)

Click here to read the full interview where Antonia talks about her early career and her experience leading a company in the water sector. 

European Week of Regions and Cities 2020: EEN services in synergy with Interreg – Virtual session

As part of the programme of the 18th European Week of Regions and Cities, the Enterprise Europe Network (EEN) will host a virtual workshop on the 14 October 2020 dedicated to the different synergies between Interreg projects and EEN services. It targets current and future Interreg actors and Managing Authorities.

It will showcase good practices from transnational, cross-border and Interreg Europe programmes from the 2014-2020 programming period to inspire the design of the new programmes as of 2021.

The workshop will be enriched with digital content and sli.do quizzes. 

Click here to learn more and register. 

European Green Capital Network (EGCN) will host webinar series open to all cities 

The European Green Capital Network (EGCN) is hosting a webinar series open to all cities and relevant stakeholders that will enable exchange with EGCN experts around four vision clusters: Future-Proof, 100% Renewable, Zero Waste and Human Scale. 

The fifth webinar will focus on tips for cities interested in applying for the European Green Capital Award.

Upcoming webinars

100% Renewable

Date: Wednesday, 2 September 2020

Time: 14:00 CEST

Speakers:

1. Johan Sandström, Head of Sustainable Development, City of Umeå
2. Sara Freitas, Project Manager, City of Lisbon
3. Peter Pluschke, Former Deputy Mayor for Environment and Health, City of Nuremberg
4. George Stiff, Officer – Climate and Sustainable Energies, ICLEI Europe

Key themes: Climate change mitigation and energy performance

To attend this event, please register here.

Download the EGCN 100% Renewable Toolkit>>>

Zero Waste

Date: Wednesday, 9 September 2020

Time: 14:00 CEST

Speakers:

1. Simona Berden, Senior Adviser, Development Projects and Investments Office, City of Ljubljana
2. Maxime Ammendolea, European Affairs Officer, City of Strasbourg
3. Melanie Clavier, City of Strasbourg

Key themes: Waste, green growth and eco-innovation

To attend this event, please register here.

Human Scale

Date: Wednesday, 16 September 2020

Time: 14:00 CEST

Speakers:

1. Juan Carlos Escudero, Head of Information and Innovation for Sustainability, Environmental Studies Center, City of Vitoria-Gasteiz
2. Kai Lipsius, Head of Essen Green Capital Agency, City of Essen
3. Hallie Grace Haines, City of Strasbourg
4. Matthew Bach, Coordinator, Just Transition at ICLEI Europe

Key themes: Sustainable urban mobility, sustainable land use, air quality, noise

To attend this event, please register here.

Green Capital

Date: Wednesday, 23 September 2020

Time: 14:00 CEST

Speakers:

1. Anne-Marie Larsen, Project Manager, City of Copenhagen
2. Mark Leach, Project Manager, Bristol City Council
3. Stefan Kuhn, Deputy Regional Director, Governance and Social Innovation, ICLEI Europe

Key themes: How your city can become the next European Green Capital

To attend this event, please register here.

The webinar series is free to attend and offers guidance, insider tips and the opportunity to learn and share experiences on best practices and challenges.

Sewers4COVID receives prestigious award from the Royal Academy of Engineering for their work tackling COVID-19 

The President’s Special Awards for Pandemic Service from the Royal Academy of Engineering awarded Sewers4COVID as one of the exceptional examples of engineering in the service of society in the context of pandemic challenges. 

The Sewers4COVID team from the University of Exeter and led by Professor Dragan Savic FREng applied machine learning to sewer epidemiology to estimate the number of infected people in a certain geographical area to track the spread of infection. 

The Centre for Water Systems team contributing to Sewers4COVID, led by Professor Dragan Savic FREng, includes Dr. Lydia Vamvakeridou-Lyroudia, Professor Albert Chen, Dr. Mehdi Khoury and Gareth Lewis. They use wastewater-based epidemiology, which involves analysing sewage samples on a daily basis. 

By applying machine learning techniques to the sewer surveillance data, Sewers4COVID can detect hotspots of potential outbreaks in real-time. The method also takes into consideration socioeconomic conditions, to identify vulnerable groups that are at high risk. The result is an estimate of the number of infected people in the area covered by the sewer system.

This original approach was conceived in 48 hours when the Exeter engineers competed with more than 2,000 other teams in the #EUvsVirus hackathon organised by the European Commission in April. Collaborating online, the team developed the methodology and a powerful prototype of a digital pandemic observatory in the Netherlands.

Durk Krol, Executive Director of Water Europe, says: “Sewers4COVID offers an alternative approach, which is independent of costly individual viral tests, for large scale-surveillance that provides scientifically-proven evidence to support public health management. It will quickly reflect the phase of virus concentration in communities, enabling governments to manage restrictions in a timely way with confidence.”

Click here for more information. 

CDP: Greater bank transparency is key to stop funding dangerous deforestation

Banks play a much bigger role in funding deforestation than previously thought, finds a report from CDP. One of the report’s most stark findings shows that funding for South-East Asian companies engaged with palm oil, timber or rubber commodities is driven predominately by banks, who provide two thirds (66%) of their capital needs.

The report titled ‘Increasing transparency of banks: The transition to sustainable lending to the forest risk commodity sector‘ addresses how greater bank transparency is key to stop funding dangerous deforestation. According to CDP, the benefits of greater transparency and action are not limited to banks alone. The flow of capital can change – and accelerate – the trajectory of the global economy.

Reaching across the global economy, the financial sector has the power to hinder or hamper our transition to the sustainable economies of the future. This means sustainable lending and transparency benefit both people and the planet.

For Water Europe, transparency and disclosure are essential for a Water-Smart Society.