Professional Documents
Culture Documents
INTRODUCTION
The United Nations Economic and Social Commission to limit water pollution and promote sustainable
for Asia and the Pacific (ESCAP) undertook a project water use in the industrial sector. Building on such
to strengthen national capacities in designing examples, this project emphasizes the role of
policies for water treatment and use in key industrial legislation, an integrated approach towards policy
sectors in seven countries in the region: Bangladesh, formulation founded on a theory of change, and the
Cambodia, Indonesia, Lao PDR, Myanmar, Pakistan, need for enforcing the polluter pays principle.
and Viet Nam. Due to their booming industrialisation,
In February 2019, in an effort to disseminate these
these countries present high-water consumption
findings, ESCAP held a workshop to build stakeholder
and water pollution potential.
capacity and identify challenges and opportunities
The project started by taking stock of key policy in the region for addressing water pollution by
lessons and recent case studies from the region. industries and promote more efficient water usage.
Examples used for this project include the People’s This policy brief provides an overview of the policy
Republic of China’s (PRC) Water Ten policy reform, landscape in addressing water pollution in countries,
which captures proven and effective measures then summarises the key challenges to water use
and management under three broad categories solution approaches. The brief concludes with some
of information, incentives and institutions. It then proposals for enhanced regional cooperation and
discusses the existing policy to address these recommendations for future work.
challenges and also highlight some emerging
OVERVIEW
National governments are aware that management and planning of the country’s vast
industrialisation can lead to environmental rivers. Myanmar’s 2012 Environmental Conservation
degradation. In fact, policymakers across the region Law established ambient water quality standards
have made substantive efforts to introduce policies for surface water, marine water and groundwater. In
that curb environmental impacts, many of which are Pakistan the 2018 National Water formulates projects
specifically targeted at industrial water pollution (see and master plans for water conservation, water
Annex, Table 1). development and water management. In Indonesia
the Environmental Protection and Management Law
These efforts are also demonstrated
(2001) encompasses a green industry standard,
through water and environmental legislation
punishment against intentional water pollution,
aimed at protecting the environment in the face of
subsidies on preserving environmental functions and
rapid industrialisation. In Bangladesh the National
water pollution sanctions. Finally, in Viet Nam the
Water Policy (1999) and the Bangladesh Water
Law on Environmental Protection (2014) established
Act (2013) delineate policy principles regarding
special funds to support pollution control, an effluent
industrial water use. In Cambodia the Strategic
permit system, mandatory compensation and
Development Plan (NSDP) for 2014–2018 states
remediation of environmental damages.
the importance of protecting natural resources
and sustainable development and outlines tangible However, despite these efforts, pervasive
policies to address water pollution. In Lao PDR the patterns of water pollution and inefficient water
Water Resources Law was updated in 2017, aiming usage are still observed. Moreover, common polluting
to improve the sustainability of Lao PDR’s water industries exist in amongst numerous countries in
resources. It is expected to influence the monitoring, the region and contribute to the pollution of many
2
transboundary water resources, suggesting the top four policies were wastewater recycling, pollution
need for regional cooperation for pollution control. treatment, discharge policies and ecological policies.
Across targeted countries, top polluters include the This feedback demonstrated a pattern in public policy
textile industry, iron and steel, food and beverage thinking, preventing polluted water from entering
production, agriculture and construction (see Annex, water ways is at the forefront of water pollution
Table 2). These top polluting industries are not only prevention for many countries.
water polluters but also water users, making them
However, stakeholders tend to view these
contributors to both water quality and water scarcity.
policies as unsuccessful. When asked to rate their
These concerns raise questions about the success
perception of already implemented policies based on a
and failure of policy implementation across the
five-point scale for implementation, transparency and
region.
effectiveness, most policies averaged 1 or 2 across
Key stakeholders in target countries were all three criteria with only few policies scoring above
asked to identify the most important tools in limiting 2 (see Figure 1). This called for deeper exploration of
adverse water impacts from industrialisation. The the critical challenges facing policy implementation.
CHALLENGES
Based on research and consultation with relevant Investing efforts in internal and external institutional
stakeholders, the main challenges faced by coordination and building strong enforcement
policymakers when addressing water pollution from framework are therefore crucial channels to control
industry can be divided into three distinct categories: water use and pollution.
information, institutions and incentives.
1) Policy framework:
a. Lack of clear and appropriate policy tools
Information: The low availability and dissemination
of data surrounding industrial water pollution b. Insufficient policy coherence across
is an obstacle to sustainable industrial water ministries and levels of government
management. To build and monitor sustainable c. Low collaboration and buy-in from private
industrial systems, the impact of industry on water sector
needs to be more accurately and regularly quantified. d. Lack of strategy for transboundary water
1) Data gathering: resources management
a. Inadequate environmental impact 2) Policy coordination:
assessments
a. Low political will to protect the
b. Unsustained water quality monitoring environment and enforce the existing
c. Lack of decentralized data generation and policies
participatory data gathering involving all b. Inadequate capacity to carry policy
stakeholders commitments, especially monitoring and
enforcement.
2) Data dissemination:
a. Low public awareness on the state of Incentives: The ability to adopt sustainable
water quality and pollution production practices and the drive to reduce water
pollution are determined by incentives. Often,
b. Poor communication with industry and
industrial water issues are the result of a choice
other stakeholders
architecture that fails to push industries towards
Institutions: Industrial water issues often stem from greener behaviours and fails to deter them from
institutional failure and fragmented approaches. polluting.
3
1) Positive incentives: tax and implementation of other punitive
a. Insufficient access to green technologies measures.
b. Lack of funding for monitoring In sum, the challenges associated with industrial
technologies water fall under three main categories: information,
institution and incentives. In the following section,
2) Negative incentives: we suggest policy actions to improve industrial water
a. Prohibitive political cost of pollution strategies in these three categories.
OVERCOMING CHALLENGES
The following section reflects on the potential 2) Benchmarking efforts: This type of
solutions to address some of the challenges information tool informs constituents
identified in the previous section. Recognizing the and policymakers on the status or trends
need to prioritize issues, the solutions presented associated with environmental conditions
here do not offer a mirror image of the challenges and/or activities. These kinds of efforts seek
previously identified. Rather, they highlight some of to define benchmarks that can be used to
the most promising solutions available regionally. inform debate, to aid setting priorities for
This section is divided between existing solutions future policies or actions based on accurate
(A), comprising the low-hanging policy tools, and environmental status, or to help evaluate
emerging solutions (B), that sheds light on more progress in achieving previously specified
innovative and exploratory solutions. goals, providing clarification on the nature
and status of environmental problems and
A. EXISTING SOLUTIONS challenges.3 Examples can include public
information campaigns on emissions and
Information water use, such as Malaysia’s awareness
In order to strengthen public information and campaign among riverine populations,4 or the
participation, two aspects of public policy need to release of statistics and case studies each
be strengthened: information and engagement. year.
Improving information on environmental policy
These information tools act on two levels to inform
requires that government spearhead two particular
government, industry and the public. First, they
information tools, support efforts and benchmarking
inform private companies to understand and engage
efforts:
with new environmental measures. Second, they
1) Support efforts: This type of information tool is inform the public on the status of the environment
used to direct or justify particular programme and consequential policies, empowering the public
activities, such as the establishment of specific to make hold the government and private companies
regulatory requirements or the introduction accountable. However, engagement with the public
of new practices to better abide by industry is an important prerequisite in the process to ensure
standards.1 This type of information tool is information in disseminated.
designed to provide information to companies
In order to ensure engagement, governments
seeking to understand regulations.2 Examples
must give platforms that companies and
can include flyers regarding environmental
constituents can engage in. For example, PRC’s
regulation and best practices or posters
Water Ten enabled public reporting of environmental
demonstrating compliance methods, which
crimes. As a result, private companies committing
can be accompanied by many other forms of
environmental mismanagement are now exposed
communication and information.
in the public media and required to issue televised
4
apologies. This type of action enables public Institutions
awareness of environmental issues, in turn Environmental policies are often well designed
fostering ‘environmental conscience’ in society. but poorly implemented. The failure to implement
Consequentially, clear information distribution or environmental policy can usually be traced back
exchange between public institutions and the general to a lack of monitoring, insufficient enforcement
public drives public engagement with broader mechanisms and poor capacity, especially within the
environmental issues. institutional level.
However, public institutions do not solely In order to address the improvement of monitoring
drive public awareness. Non-governmental activities the following improvements are required: 6
organizations and civil society play a major role in
increasing information circulation on environmental 1) Improved access to monitoring technologies:
issues and hold governments and the private sector With monitoring technologies becoming
accountable. An example of this is the International increasingly affordable, adoption by private
Water Association (IWA) initiative on creating and public actors must be eased by ensuring
“Water Wise Cities”. Through this initiative, IWA marketplace availability and low taxes on
has developed a shared understanding towards technologies.
sustainable urban water in resilient and liveable cities 2) Improved understanding of appropriate
among urban stakeholders. “Water Wise Cities” cover monitoring methodologies: Training
levels of action, knowledge and capacity, governance and distributing up-to-date educational
and tools for planning and implementation.5 Similarly, information on standardized monitoring
GIZ’s Best Available Technologies Reference (BREF) methods to the private and public sector is
compiles information on best available technologies central to support monitoring compliance and
to inform decision-making within specific industries the establishment and maintenance of data
industry (see Case Study 1). Another example, is centralization.
multi-stakeholder processes.
5
Case Study 2: The Role of Multi-stakeholders Platforms in the Policy Development Process
Global Water Partnership Southeast Asia and its partners in Indonesia successfully formulated a position
paper on the inclusion of community-based water and sanitation programme for the Water Resources
Law Draft of the Republic of Indonesia.39 The paper was presented and accepted by the Parliament after
series of meetings and workshop co-organized by GWP-SEA together with UNICEF Indonesia, Centre for
Regulation Policy and Governance (CRPG) and Jejaring AMPL (Indonesia’s Water and Sanitation Networks).
The discussions that were held in September 2018 involved civil societies, non-governmental organizations,
government representatives, academics, related partners and mass media. 40
Figure 4. Multi-stakeholders
The outputs of the workshops were several suggestions and revision to the articles on the Law Draft. These
outputs were the results of series of smart discussions, cutting through many noises that might have
deviate the efforts along the way. Especially the noise of political issues. 41
Similar multi-stakeholder position papers help the decision-makers understand the multi perspectives of
stakeholders and prioritize issues to be addressed.
Source: Fany Wedahuditama (2019)42
3) Improved data collection: Once monitoring and time-consuming activity for business to
is achieved, national data tracking and data establish. Simple, clear and effective guidelines
centralization is extremely important to inform for business will enable better environmental
policy choices. This extends to effective and monitoring and reporting and foster stronger
continual environmental impact assessments cooperation between the public and private
to ensure policies reflect current trends. sector (see Case Study 3).
4) Improved education on access, development
and interpretation of data: Strengthened Monitoring efforts need to be complemented by
capacity for data collection and analysis effective enforcement, presenting the following
can enable stronger data collection and characteristics:
more accurate monitoring practices. Further, 1) Clear roles and responsibilities: In order to
training local communities on environmental coordinate nation-wide effective governance,
monitoring enhances their involvement, individual ministries and local government
resulting in more efficient implementation and actors need to have clear directives on actions
an improved environmental conscience. and responsibilities. This ensures institutional
5) Streamline business reporting on ownership over national goals.
environmental performance: Environmental 2) Integrating water into broader policy
monitoring for compliance is usually a costly frameworks: Building broader policy
6
Case Study 3: Co-operative Regulation
New approaches to law and regulation try to use private managerial capacity to advance sustainable
development goals.
An OECD study shows that a “co-operative form of regulation is gradually emerging that attempts to induce
companies to use their private compliance expertise to advance public enforcement objectives”.43 The
study makes the following example:
OECD governments have integrated private compliance efforts into their regulatory and law
enforcement strategies in such areas as environment and food safety. Although they are often
referred to as co-operative regulation, these new approaches rely on more than just trust and good
faith. They can create powerful incentives for companies to adopt initiatives in support of corporate
responsibility while allowing them the flexibility they need to adapt their management system to their
own business situation.44
For more information: Enabling Conditions for Environmental Sustainability - Private and Public Roles.
Available at: http://www.oecd.org/austria/2080741.pdf
Case Study 4: PaCT, Effective Public Private Platform to Tackle Water Pollution
PaCT is a project run by the International Finance Corporation in Bangladesh playing a leading role in
driving the long-term competitiveness and environmental sustainability of the textile wet processing sector
by addressing high water, energy, and chemical use through the adoption of best practices in the textile
sector. These best practices lead to declining resource consumption, soaring profits, and an enhanced
image in the global apparel market. The programme activities encompass working with leading global
brands to adopt environmentally sustainable buying practices, promoting best practices in textile factories,
addressing sector transformation and regulatory policy gaps, and financing resource efficiency projects in
textile factories.45
For more information please visit: https://www.textilepact.net/about-us/what-is-pact.html
7
Case Study 5: Indonesia’s Programme for Pollution Control, Evaluation, and Rating (PROPER)
PROPER was a programme conducted in Indonesia with the aim of promoting public disclosure of
environmental sustainability. The aim of the programme was to encourage companies to be more
sustainable by providing public rating systems. The premise of this programme was that public disclosure
influenced company behaviour. Recently, the ease of access to finance for firms also depend on the ratings
received.46
The public disclosure process operates by implementing three monitoring steps: “data collection and
verification from different sources at the participating plants, data analysis, and assigning ratings with
subsequent public disclosure. This ensures that the data gathered goes through a process of rigorous
scrutiny before it is released to the public since any error in rating would result in the rating losing its
credibility.”47
The results of this programme were largely positive. Beginning with the initial phase of the programme in
1995, the following progression was observed:
65 per cent of the 187 rated factories showed signs of non-compliance. Five factories were assigned
a green rating while six received a black rating. None of the participants was awarded the gold rating.
Twenty new companies had joined the programme by December 1995, and there was a 50 per cent
drop in the number of facilities that were rated black. In a year’s time compliant plants grew from a
third to half of the sample. Eighteen months after full disclosure there was a 40 per cent reduction in
pollution. This was believed to demonstrate how seriously the companies perceived PROPER ratings.
After these findings it was believed that public opinion can be leveraged effectively to monitor and
enforce regulations.48
However, multiple studies have assessed performance ratings programs in Asia to determine whether
and how the programs alter industry decisions. They show that when environmental performance ratings
established and released it drives industry compliance with written regulations.49 The only two rigorous
econometric studies of this phenomenon suggest the effect was causal: disclosure caused dirty (but not
clean) plants to clean up. There is less consensus on how public disclosure had this effect.50
Source: Information shared by workshop participants51
damage, appropriate officials are to be of these changes are influenced by the broader
held liable, even after retirement also their environment: economic, cultural, social, legal and
performance evaluations are strongly linked political.13 In that sense, government and society
into environmental outcomes.9 have the power to influence industrial practices in
purposeful and subtle ways, from government-led
6) Cost effective enforcement measures:
initiatives to consumer behaviour.14
literature shows that regulatory enforcement
measures are often hindered by low cost
In order to incentivize change, several policy tools
effectiveness.10 Conversely, market-based
can be utilized:
solutions, such as environmental taxes, offer
reduced enforcement costs and lower the 1) Public Private Dialogue: Developing forums for
need for government intervention.11 the public and private sector to communicate
environmental challenges enables a greater
understanding of the barriers to compliance
Incentives for the private sector, allowing policymakers to
Shifting to a circular economy or towards more design environmental regulation accounting
sustainable practices demands an enabling for industry capabilities. It is important for
environment for industry change. While water governments to work together with industry
pollution control is predicated on private companies associations so that membership to such
upgrading their practices,12 the breadth and speed associations can be subject to compliance
8
Case Study 6: Impact of Skill Development Programmes
Skills development for operators/technicians in effluent treatment plants is critical in ensuring more
efficient use of existing technologies and facilities. GIZ developed skills development programmes in India,
training over 500 technicians, leading to clear improvements in five pilot industries.
Results indicated:
1) Reduction in excess sludge generation in the aeration tanks,
2) Improved clarifier performance leading to reduction in Total Suspended Solids (TSS) and Chemical
Oxygen Demand (COD) by about 19 per cent,
3) Reduced water consumption, reduced COD and Ammoniacal Nitrogen, reduced sludge,
4) Reduced sludge generation at the effluent treatment plant, and
5) 20 per cent reduction in sludge generation and reduced moisture content.
This programme demonstrated the effectiveness of simple capacity building programmes in improving
water quality.
Source: Raghu Babu Nukala (2019)52
with environmental standards. This can as subsidy programs for green technology
motivate higher compliance allow companies to overcome the financial
impediments to cleaner practices. For
2) Environmental rating systems: Environmental
example, in China the government invested
rating systems such as PROPER (see Case
heavily in centralized water treatment
Study 5) incentivizes companies to comply
facilities, which provided an indirect financial
with environmental regulation by signalling
incentive for firms. Negative incentives follow
to consumers positive messages about their
the polluter pays principle, taking a toll on the
sustainability efforts. This, in some cases,
pollution produced in the form of taxation.
can create competition between firms and
These two types of incentives are closely
induce consumer driven change by redirecting
related as environmental taxation can have the
consumers to more environmentally
double effect of discouraging environmentally
responsible products.
harmful behaviour and increasing public
3) Improved human capital: If governments are funding for environmental initiatives.
going to lead the development of management
The revenues of environmental taxation are not, in
and reporting standards, they further need
many instances, systematically directed towards
to promote this area of expertise through
environmental investment. For some governments,
their systems of higher education, which
the opportunity cost of incentives and subsidies
should offer special course work and degree
appears too high and resources are allocated in
programmes in various fields of environmental
priority to non-environmental action. However,
management, science, technology and
the UNIDO TEST programme has shown that
compliance.15 Further, strengthening capacity
spreading information on the financial upsides of
of workers in industries can deliver significant
environmentally friendly practices can be an effective
efficiency gains in terms of promoting cleaner
tool to move towards cleaner production practices
production (see Case Study 6).
(See Case Study 8).
4) Financial incentives: These can be of
two types: positive incentives, which pull B. EMERGING SOLUTIONS & APPROACHES
individuals and institutions towards greener
While the previous segment presented some of the
behaviours, and negative incentives, which
ways to directly address our current challenges, the
sanction pollution. Positive incentives such
following emerging solutions aim to go beyond these
9
Case Study 7: China’s Environmental Protection Tax Law
As of 1 January 2018, China has been implementing its first environmental tax law. This came as a
replacement of a discharge fee system. The former policy, while bringing in substantial tax revenues, was
undermined by loopholes and double-dealing.
The new law establishes the first national tax regime, notably featuring progressive tax treatments. Under
this provision, the pollution tax rate applicable to industries depends on their relative environmental
performances. For instance, half the environmental protection taxes will be cut if taxpayers manage to
reduce concentration levels by 50 per cent below national and local standards.
To successfully enforce this taxation scheme, China’s new policy includes a measure to strengthen its
administrative capacity. From now on, the environmental protection authority will support the tax authority
with the monitoring of pollutants. This collaboration on data analysis should provide the tax authority with
accurate and relevant estimates of a taxpayer’s concentration levels.
Source: Gloria Luo (2018)53
challenges and shift the paradigm from which we substances from pesticides, industrial and mining
approach industrial water policy. discharges.”17 There is evidence that wetlands
alone can “remove 20 to 60 per cent of metals in
water and trap 80 to 90 per cent of sediment from
Nature-Based Solutions
runoff. Some countries have even created wetlands
Nature-based solutions take advantage of naturally
to treat industrial wastewater, at least partially”.18
occurring ecosystem services and seek to solve
However, wetlands cannot filter out all types toxic
pollution issues using those ecosystem services.
substances discharged into the water and their
For example, Australia’s water policy sheds light
capacity has limits. Exceeding these limits could
on wetlands’ effectiveness in removing pollutants
cause irreversible damage to the ecosystem, hence
from industrial runoffs.16 While wetlands only
the need to recognize limits accordingly.19
cover about 2.6 per cent of the planet, they play a
disproportionately large role in hydrology. Wetlands
“directly impact water quality by filtering toxic
Case Study 8: Low Carbon Development for Productivity and Climate Change Mitigation through the
Transfer of Environmentally Sound Technology (TEST) Methodology
UNIDO has developed a programme with the Government of Cambodia, titled ‘Low carbon development
for productivity and climate change mitigation through the Transfer of Environmentally Sound Technology
(TEST) methodology’ in order to reduce the long-term risk of climate change through the transfer of
environmentally sound technologies in Cambodian industries, targeting the garment industry and food &
beverage production.54
According to UNIDO, the programme works in the following way:
TEST supports the sound management of resource use at priority industrial hot spots to minimize
use of resources, maximize productivity, and promote zero discharge through demonstration of best
practices, application of clean technologies, and capacity building. The methodology demonstrates
that industries can achieve economic benefits through the application of best environmental practices
and resource efficiency. The programme does this by (1) revealing the “total costs” of resource use
inefficiencies within production, (2) assessing industry resource efficient & environmental performance
against sector benchmarks and international best practice, (3) understanding root causes of
inefficiency and, (4) installing an effective information system on priority material and energy flows.
Source: Sooksiri Chamsuk (2019)55
10
Figure 2. Industrial watersheds
Source: IWMI56
Source-to-Sea Management System of the most urgent challenges in a river basin and
Current approaches to environmental protection develop the frameworks required to address these.
in rivers, coastal zones and marine environments Examples of activities could include addressing
struggle to promote sustainability due to a limited upstream over-consumption of water to benefit
understanding of ecosystems and linkages. This is downstream stakeholders (from farmer households
partly due to poor or fragmented governance along and businesses, to the needs of growing cities) and
the continuum from source to sea. This shortcoming functioning/healthy ecosystem flows; transforming
demands cooperation and strategic overview to unsustainable land-use practices to reduce erosion
accommodate the needs of all stakeholders.20 and removing incentives to over-use agricultural
The aim of the S2S approach is to inputs such as pesticides and fertilizers. All S2S
systematically consider and target context-specific work is preceded by a comprehensive account of the
governance structures and integrated management water balance to determine the specific impacts of
practices to address strategic resource flows - water, any intervention in the water cycle.
sediments, pollutants, environment goods and Successful use of the S2S platform includes
services, biodiversity - vital to effectively sustaining Myanmar, which established a high-level platform
ecosystems and socio-economic development bringing together institutions in the source-to-sea
in a given river basin or watershed. S2S explicitly continuum, including fishery and forestry ministers
recognizes complex upstream-downstream to address the problem of institutional fragmentation
connections, supply and demand linkages and the across river basins. Through this platform, Myanmar
increasing interconnectedness of resources and hopes to improve coastal and marine conversation.21
resource users as we reach natural resource limits.
S2S provides a collaborative platform to
Water Reuse and Resource Recovery
identify and strategically address multiple users
Reusing and exchanging water across sectors can
and needs and for mainstreaming multiple national-
lower the cost of water supply and wastewater
global environment benefits and their management
treatment for the private sector and industry and
within wider (e.g. production) landscapes. S2S
promotes more efficient use of water.22 This can
permits a high degree of flexibility to focus on the
be achieved through means of industrial symbiosis
key priorities of critical basin landscapes, and to
where by water discharged from one industry or
include all strategic actors to develop and implement
entity can be used and recycled by others.23 This
governance frameworks.
practice can greatly reduce the amount of clean or
The S2S method can support governments fresh water being consumed by industry, as well
and key stakeholders to identify a small number as “increasing water availability and improving
11
Figure 3. Water reuse and exchange between sectors
Source: IWMI57
community relations, increasing productivity per Towards Smart and Sustainable Industrial Parks28
water input, lowering waste water discharges In response to the complex nature of water
and their pollutant load, reducing thermal energy management, many countries across the region
consumption and potentially processing cost”. 24 have adopted industrial parks or eco-industrial parks
as part of the management solution. By grouping
Separating wastewater streams as early as
industry in one place, government is more able
possible alleviates resource recovery and facilitates
to manage, promote and build capacity of private
the treatment process. In particular, the separation
entities, as well as quickly adopt new solutions
of greywater promises new ways of reusing water.
and improve and strengthen the overall water
Compared with wastewater reuse, greywater
management capacity of industry. However, there
involves smaller cleanliness concerns and demands
are debates about the strengths and weaknesses of
less treatment effort. Not only water, but energy
central and decentralized waste water management
and nutrients are also more easily recovered from
or water pollution management. On the one hand
source-separated wastewater. Examples of source
centralized parks offer easier management, and
separation include the 40 million domestic biogas
entities are able to combine efforts in managing
reactors in China.25
waste, on the other hand, the environmental carry
Symbiosis can be achieved within a business capacity required for an industrial park is high and
or between businesses with the potential to reduce costs of moving industry into one location are also
water bills as well as wastewater treatment costs.26 high. These are two highly important considerations
A business can reuse wastewater that is clean for countries seeking to adopt this method.
enough for the purpose for which it is being reused.
In China, the government has rolled out
Rainwater and process water can be reused for
many initiatives and supporting policies for the
purposes such as: 27
development of eco-parks. There are three industrial
• Irrigation (see also reuse of wastewater in park pilot programs currently running in PRC: circular
agriculture, optimisation of water use in transformation industrial parks, eco-industrial parks
agriculture or WHO guidelines on reuse of and low carbon industrial parks/green parks/smart
wastewater in agriculture) parks.
• Washing These parks have key characteristics, namely:
• pH adjustment • Government as key enabler
• Fire protection • Central management systems
12
Case Study 9: Resource Recovery and Water Sensitive (Urban) Design (IWA)
A range of new initiatives are underway to promote and accelerate the development and uptake of resource
recovery science and technologies.60 The key has become how to move from research to practice, while
also taking into account (a) the market potential for the resource recovered, (b) appropriate public policy,
regulation and institutional arrangements to support and accelerate resource recovery and (c) stakeholders’
needs well integrated with technologies, markets, policy, new initiatives, current research and practice.61
Within this light, IWA has developed a Resource Recovery Cluster. The core issues of the Resource Recovery
Cluster are to innovate science, technology and business which promote the recovery of resources from
the drinking and used water treatment facilities.62
For more information on the Resource Recovery Cluster please visit: https://iwa-network.org/groups/
resource-recovery-from-water-cluster/
Source: Katharine Cross (2019)63
13
Case study 11: Zero Discharge Policies
The application of Zero Discharge standards is being extended to a large variety of industries with highly
promising results. Closed loops have been successfully implemented in the meat industry in China,64 where
pigs are fed the chlorella green water fermented liquid generated as a by-product of wastewater treatment,
another example is energy generation in the Philippines.65 In similar vein, Zero Discharge of Hazardous
Chemicals (ZDHC) standards are adopted by the textile and leather industries in Bangladesh.66 There, major
ready-made clothes manufacturers including H&M, Nike and Asos have been following the ZDHC Roadmap
to develop a list of Manufacturing Restricted Substances to ban from their facilities. ZDHC seems to kindle
increasing industry buy-in as a significant share of companies having adopted such lists have reported
to find their benefits to largely outweigh their costs.67 In India Zero Liquid Discharge (ZLD) Zero Liquid
Discharge (ZLD) guidelines were recently introduced for four industrial sectors (textile (wet processing),
distilleries, pulp and paper and tanneries) in India to promote uptake of ZLD practices in these industries.68
between government and the private sector that can offices, to treat river grabbing as a crime, to remove
be integrated into new models of industrial water illegal structures from rivers, and to amend the laws
management. to punish criminals responsible for the deterioration
Living Rivers of the natural flow of rivers. This move in Bangladesh
An interesting legal tool worth noting in the plight for is monumental, and hopefully a positive step forward
stronger enforcement of environmental compliance towards cleaner water resources.
is the case for living rivers, granting legal rights to However the conditions to grant or enforce
rivers. The concept of granting legal rights to non- legal rights have historically been lacking and, as
human entities is not new, but it has only recently a result, legal rights for nature have been difficult
begun to be implemented for nature conservation.30 to enforce. In the examples of Ecuador and Bolivia,
There have been many instances of rivers being “few legal cases advocating for the rivers legal rights
granted legal rights, including in Ecuador 2008, in have been successfully upheld and even when the
Bolivia 2010 and more recently in New Zealand and rights have been recognized in court, local actors
India. These are the first examples of legal rights responsible for enforcement have lacked capacity to
being applied to a specific, identifiable, bounded translate the legal decision into effective outcomes
natural feature and have opened a new pathway for on the ground”. 32
water resources management.
The High Court (HC) in Bangladesh recently Zero Discharge
delivered a historic judgement on 3 February 2019, Zero discharge refers to strategic wastewater
declaring rivers as legal entity and assigning the management systems that ban the discharge of
National River Protection Commission (NRPC) as the industrial wastewater into the environment33 —
legal guardian to act as their parent in protecting the following a zero liquid discharge model (ZLD) — or
rights of waterbodies, canals, beels, shorelines, hills ensure that hazardous chemicals are not released
and forests. It stands to be the most comprehensive in the environment. According to the World Bank,
verdict by any court in the world to give such specific zero discharge measures could reduce water
directions to protect the rights of rivers or any other abstractions by up to 75 per cent. They do not,
natural entity.31 however, affect non-consumptive use and have the
The High Court verdict in Bangladesh potential to reduce return flows to the environment.34
regarding the legal rights of rivers goes beyond Their implementation must therefore be considered
just recognising rivers as legal entities; it outlines a carefully in a local, location specific, context. To best
mechanism to implement the rights of rivers. The HC harness zero discharge standards, it is crucial to first
provided detailed directions to several government implement water use reduction programs. When
agencies to take steps to enlist the land grabbers paired, these two measures can drastically reduce
and to publish the names of perpetrators, not to the water costs and the average water abstraction.
provide loans nor to allow them to run for public
14
IV. REGIONAL COOPERATION AND RECOMMENDATIONS
While considering the target countries of this study, water treatment and reuse. The European
transboundary river basins and regional water bodies Union (EU) offers an example of regional
must be discussed. Between Bangladesh, Cambodia, benchmarking of industrial effluent standards.
Indonesia, Lao PDR, Myanmar, Pakistan, and To control industrial emissions, the EU has
Viet Nam exist 24 transboundary water bodies.69 developed a general framework based on
integrated permitting: the Industrial Emission
The need for regional cooperation in the
Directive (IED).70 In order to be granted
region stems primarily from the fact that pollution
permits to operate, industries covered by
occurring upstream affects downstream users.
the IED must comply with the Best Available
In South and South-East Asia, this need is first
Techniques (BATs). Permitting is called
amplified by the pressure of the global value chain,
“integrated” because the permits must take
in the face of which collaboration is an effective
account of a plant’s complete environmental
solution against looming environmental challenges,
performance to avoid pollution being shifted
as well as the urgent need to establish regional
from one medium - such as air, water and land
cooperation for transboundary water bodies. The
- to another. The directive includes provisions
challenges of upstream users cannot be separated
on regular inspection and public participation
from the issues of downstream users. The need for
in the permitting process. Similar efforts to
a basin-wide approach was clearly expressed by
ensure common minimum effluent standards
workshop participants, who requested that analytical
for industrial sector at the regional level could
studies be made on the region as a whole. Given
pave way for greater regional collaboration.
the water endowment and distribution of the region,
policymaking must integrate the needs and issues 2) Regional green technology and innovation
of all stakeholders along transboundary river basins platform: A regional initiative on green
and water bodies. With a better understanding of technology and innovation to control water
river stakeholders and the water demands of the pollution could greatly assist the regional
region, countries will be able to better develop more efforts in combating water pollution by
comprehensive river basin management strategies enabling exchange of knowledge and
and will be able to better evaluate the environmental promote mutual learning. Cooperation to
carrying capacity of these water bodies. disseminate green technologies already
exists at the global level in various forms, as
Due to the difficult nature of regional
exemplified by the International Environment
cooperation for transboundary rivers, a more
Technology Centre (IETC) of UN Environment.
pragmatic approach to transboundary water bodies
There is, however, need to further promote
or water pollution should shift focus towards benefits
the accelerated transfer of environmentally
and regional solutions, while also finding the balance
sound technologies in areas of water use,
between political and technical outputs. Regional
management and control of pollution including
bodies could work either at the country level with
monitoring. Technological and informational
commissions or at the business level at multinational
cooperation could also compile information on
business councils to identify mutual interests and
best available technologies to inform decision-
move towards achieving environmentally positive
making within specific industries following
outcomes together.
the model of Best Available Technologies
Possible Regional Initiatives Reference (BREF) documents developed by
the EU for specific industries.71 Given the pace
1) Regional effluent standards: To synchronize of technological change, such knowledge
policies regarding industrial effluents, regional exchange platform should aim to keep track
governments could consider developing of and constantly update such documents in
common standards for effluents, industrial collaboration with industry associations and
15
other relevant stakeholders. investments while promoting a sustainable
use of natural resources, the Assiociation
3) Regional green investment guidelines:
of Southeast Asian Nations (ASEAN) has
Regional green investment guidelines, which
developed a set of guidelines on responsible
includes minimum standards on pollution
investment in food, agriculture and forestry.
control, would help regional economies set
The guidelines are aimed mainly governments
higher environmental standards without
and agencies in South-East Asia, with the
reducing their economic competitiveness.
ambition of joining forces to integrate
The idea would be for the region as a whole
environmental concerns in their international
to raise environmental standards together
trade policies. They include recommendations
through effective regional collaboration. As
to support technologies that “improve
mentioned, emerging economies often face
efficiency in the sustainable management and
the pressure to prioritize economic growth
use of raw material, natural resources, energy
over environmental protection. Much of
and waste”.72 Similar guidelines at the regional
this reluctance towards regulation comes
level that can act as minimum standards for
from competition to attract foreign direct
national level investment policies can be
investment (FDI) or foreign buyers. In this
helpful for the region as a whole to improve
race for economic growth, countries want to
environmental performance of the industrial
maintain their market competitiveness and
sector.
reduce costs for FDI as well as domestic
investments. However, regional cooperation To implement regional solutions, countries could
could help harmonize investment guidelines set up committees overseeing cooperation or
for environmental impact across the region information exchange and nominate representatives
and eliminate concerns over competition. from civil society, industry or their ministries
For example, in a spirit of attracting foreign to facilitate this exchange. Existing regional
16
mechanisms such as ASEAN, the South Asian finding common interests and mutually beneficial
Association for Regional Cooperation (SAARC) and issues to focus attention, and as seen from the
the ESCAP Sustainable Business Network could case study on the Mekong River Commission, the
play key roles in the development of these initiatives. balancing of political and technical priorities.
However, most important for a regional approach is
CONCLUSION
There are significant overlaps between the access, financial subsidies and tax breaks
challenges confronted by countries in addressing could be used selectively to nudge industry
water pollution and promoting efficient water towards compliance and adoption of cleaner
management in industrial sectors. These challenges production practices.
mainly fall under three broad categories: information,
5) Emerging approaches such as nature-
institutions and incentives. Transboundary water
based solutions, source-to-sea management
bodies add a layer of complication to already complex
approaches, enhanced water reuse and
systems of water management. However, target
resource recovery approaches, smart and
countries are enthusiastic about the prospect for
sustainable industrial parks, recognizing the
regional cooperation to develop regional standards
rights of rivers and zero-discharge standards
for water quality and foreign direct investment. While
need to be promoted and scaled-up.
the region suffers due to substantial water pollution
challenges, the future looks positive with emerging 6) Regional cooperation is highly important
efforts at top levels of government to develop in the region. Mutually beneficial interests
comprehensive plans of action. offer an opportunity to develop and facilitate
transboundary cooperation on water pollution
issues in the region. Beyond transboundary
Key takeaways:
river management issues, regional cooperation
1) Governments in the region have made can also cover areas such as regional effluent
great strides in addressing environmental standards, green investment guidelines and
degradation in the face of rapid industrialisation technology cooperation.
by developing policy frameworks, however
The real costs of environmental degradation are too
implementation needs to be strengthened.
high to delay action any further. Stakeholders in the
2) Better water management demands greater region are aware of the problems and key solutions.
circulation of information to and from Stronger means to take action and stronger will
institutions. Incoming data on water quality from society as a whole, will enable more effective
must be trusted, decentralized and continuous environmental governance at the national and
to inform institutional decisions. Outgoing regional level.
information regarding water regulation and
pollution must be clear and systematically
disseminated to achieve policy goals.
3) Cross-ministry collaboration and clear
division of responsibilities and accountability
can improve effectiveness of policy
implementation.
4) Incentive schemes such as environmental
performance ratings that facilitates credit
17
ANNEX
Table 1: Key environmental policies across the region
China
Bangladesh
Cambodia
Indonesia
Lao PDR
Myanmar
Pakistan
Viet Nam
Group Brief Description
18
Table 2: Top polluters across target countries
Agriculture Jewellery and Metal Products Basic Industrial Textile and Trace and
4 related articles Chemicals Dyeing repairing
except fertilizer services
19
FOOTNOTES
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23
ACKNOWLEDGEMENTS
This policy brief is produced by the Environment and Development Policy Section (EDPS) within the
Environment and Development Division (EDD) of the United Nations Economic and Social Commission for
Asia and the Pacific (ESCAP). The publication was drafted under the overall guidance of Stefanos Fotiou
(Director, EDD) and supervision of Katinka Weinberger (Chief, EDPS). The research team comprised of ESCAP
staff: Solene Le Doze, Arun Jacob; consultants: Mallory Bellairs, Georges Delrieu, Caroline Turner. Inputs
from all participants in the ESCAP Workshop on Strengthening National Policies for Improving Water Use and
Limit Water Pollution in Key Industrial Sectors in Asia held in Bangkok, Thailand on 21 February 2019 are also
acknowledged.
Disclaimer
This policy brief is issued without formal editing. Views expressed herein do not necessarily reflect that of
ESCAP or any UN agency.