6 th World Water Forum – 13 th March 2012

1. 6thWorld Water Forum – 13th March 2012 Green Economy and Water: Identifying Pressures on Aquatic Environments to Optimise their Mitigation Economie verte et eau : Révéler les pressions sur les milieux aquatiques pour mieux les réduire Simultaneous translation is available during the conference

2. Valuation of wetlands – Economic valuation of services provided by aquatic environments Jérémy Devaux Department of the Commissioner-General for Sustainable Development

3. Presentation outline • 1°) Wetlands and valuation of their services • 2°) Application: a case study by CGDD (2010)

4. 1°) Wetlands and valuation of their services • Wetlands • Services provided by wetlands • Valuation of services provided by wetlands

5. Wetlands • Transitional areas between land and water(marshes, bogs, estuaries, etc.) with an exceptional natural heritage (35% of rare and endangered species, 50% of bird species, 30% of threatened plant species) 5.5% of the metropolitan territory (2.4 million hectares)

6. Services provided by wetlands • Services provided by wetlands : « benefits that humans obtain from ecosystems » (Millennium Ecosystem Assessment) Regulation services (ex: water purification) Production services (ex: food) Cultural services (ex: recreation)

7. Valuating services provided by wetlands • These services have a value which is rarely taken into account (lack of information and knowledge on their benefits, market failures due to the common-good nature of these benefits) • Planning decisions are partly based on economic factors. To enlight public and private decisions and to justify the preservation of wetlands, assigning a quantitative value to goods and services provided by wetlands is a necessary step • NB: Monetarization does not create a market. Revealing a value does not create a mechanism for trading!

8. 2°) Application: a case study of CGDD (2010) • Objectives of the study • Field of the study • Methodology • Example of valuation • Results • Lessons learned • Lines of work for future studies • Latest publications of CGDD on wetlands

9. Objectives of the study No study had taken into account all the services provided by wetlands altogether No study had already used several methods of economic analysisatthesametime • Understanding & estimating the Total Economic Value (TEV) of services provided by wetlands (in euros per ha) from a pilot site: Regional Natural Park of Cotentin and Bessin • Combining all methods of economic analysis, including a joint analysis (survey)

10. Field of the study Regional Natural Park of Cotentin and Bessin Perimeter of the Park Wetlands Site: 150,000 hectares Wetlands: 50,000 hectares

11. Methodology • Ecological analysis: Understanding the context, function and role of wetlands of the site (defining the limits of the site with respect to these wetlands and their services, quantifying services, monetizing services) • Utilization of all the existing methods of monetization for each service + joint analysis (800 respondents) to capture non-use values • Aggregation of individual values of services to obtain the TEV of wetlands of the site

12. Example of valuation Water purification (drinking water) • Filtering effect of wetlands on nitrates. If it were to disappear, artificial system would need to be set up to get the same effect • Valuation • Volume of water billed (7.5 million m3) • Additional cost due to drinking water treatment (between € 0.32 and € 0.42 per m3) Between M€ 2.4 and M€ 3.2 per year

13. Results • TEV of services provided by wetlands of PNR: between M€ 117 and M€ 218 • TEV per ha of services provided by wetlands of PNR: between € 2,400 and € 4,400 • Assessment made under several assumptions => Ranges of results • Results are higher than those of previous studies

14. Lessons learned • Importance of ecological analysis to understand the services provided by the site • Several methods used for each service • Combination of all economic methods - Conjoint analysis to capture non-use values • Value of the Regional Natural Park = good approximation of TEV

15. Lines of work for future studies • Promote and facilitate interaction between economists and ecologists • Improve the identification of people affected by the services to reduce the size of calculation ranges (including conjoint analysis) • Unability to monetize all (scientific value, inspiration value) • TEV is not fully complete yet

16. Latest publications of CGDD on wetlands http://www.developpement-durable.gouv.fr/Les-dernieres-publications-du.html

17. Thank you for your attention Contact : jeremy.devaux@developpement-durable.gouv.fr

18. An estimate of the water footprintof France 6th World Water Forum Marseille, March 2012 Jean-Louis Pasquier Department of the Commissioner-General for Sustainable Development (CGDD) Department for Monitoring and Statistics (SOeS)

19. Water footprint of the domestic final demandDefinition Water footprint of the domestic final demand aims at estimating the level of water use by a population in relation with its standard of living (consumption, public services, infrastructures). It includes the water directly used by households (tap water) and the water used for the production of goods & services they consume, whether they are produced in France or abroad. Water footprint of the domestic final demand=water abstraction on the French territory + water abstraction abroad relating to the production of French imports (excluding re-exported imports)- water abstraction in France relating to the production of French exports

20. Water footprint of the domestic final demandCalculation and limits Calculations carried out by the statistical department of the French ministry of sustainable development (SOeS) are based on macro-economic data (mainly physical water accounts by economic activities, national accounts’ input-output tables) and on input-output analysis. The approach adopted by the SOeS differs from the one developed by the Water Footprint Network (WFN) which is similar to life cycle analysis (sum of detailed water footprints by product). Preliminary estimateof water relating to imports. It is based on detailed data from a limited number of European countries and coefficients for imports from non-European countries adjusted according to the water intensity of GDP.

21. Water footprint of the domestic final demandScope The results presented here cover « blue » water only: supply of tap water, irrigation, industrial use, cooling of electric power plants (compared to the WFN, total water abstraction is accounted for). They do not cover “green” water (water absorbed spontaneously by crops, i.e. in addition to irrigation). However, the SOeS plans to estimate the “green” water footprint of France. The water footprint calculated by the SOeS does not cover “grey” water (volume of water required to assimilate pollution in order to reach water quality standards). However, the SOeS develops physical emissions accounts to water by industry.

22. Water abstracted on the French national territoryversus “Blue” water footprint of the French domestic final demandYear 2007

23. Water abstracted on the French national territoryversus “Blue”  water footprint of FranceBreakdown by great economic sectors (year 2007)

24. “Blue” water footprint of FranceBreakdown by great economic sectors and separation of the power plants cooling water (years 2007)

25. “Virtual ‘‘blue’’ water” relating to imports and exports of France Breakdown by great economic sectors (year 2007)

26. Example of improving Water Saving Management 13th of March 2012 Frédéric DELETOMBE Chief Technical Officer

27. ELIS Services

28. Environmental Performance ELIS a virtuous business model

29. Environmental Footprint LCA of Rental / Maintenance Services Water Consumption (m3) Primary energy consumption (kWh) End of life Service delivery Maintenance Product delivery Product manufacturing Maintenance Product manufacturing 99% 99% 96% Standard laundry Standard laundry Home washing ELIS Rental / Maintenance Home washing ELIS Rental / Maintenance Employee clothing (mechanical industry) on a 8 years period ELIS mechanic garment polyester - coton (60% - 40%) / ELIS maintenance & Classic cotton made overalls / Standard laundry or Home washing (Chantier 31 - Grenelle de l’environnement Ernst & Young 2008)

30. Environmental Performance Washing & technology principles Principles : mechanical work, T°, chemical action & bath cycle time Historical major technical improvements and their effects on water consumption Index > 200 - 300 Index base 100 Index 40-50 1960 : washer extractors 1980 : counterflow batch washing machines before 1900: threshing or crushing Index 10-20 1990-2012 : automated batch washing machines, counterflow & standing bath systems associated with water + chemical recycling units and tanks

31. Environmental Performance Washing process : main actions INVESTMENT STRATEGY  Prefering major technical improvements vs day to day equipment replacement  Process monitoring systems: Water meters, Automation, Advanced dosing systems  Recycling solution systems BALANCED LOCAL & CENTRAL ORGANISATION  80 local maintenance trained managers  Contractual commitment of chemical suppliers on Chemical / Water / Energy consumptions ; linen washing quality & waste water standards  Centralised C.W.E engineering dpt, assisting sites, managing KPIs, innovation and standards (washing recipes, standards, training) MONTHLY KPIs on C.W.E Performance & waste waters per laundry site at corporate level, daily & weekly on each local site

32. Environmental Performance Washing process : results Water and Energy Consumption Reduction (Index 100 base) ENERGY KWh/Kg Washed linen WATER L/Kg Washed linen • 14% ENERGY CONSUMPTION BETWEEN 2008 AND 2011 (RATE KWH/KG OF WASHED LINEN) • 19% WATER CONSUMPTION BETWEEN 2008 AND 2011 (RATE L/KG OF WASHED LINEN) • 20% CHEMICAL CONSUMPTION BETWEEN 2008 AND 2011

33. Environmental Performance Our vision SUSTAINED INVESTMENT FOR INNOVATIONS THE LINEN LIFE TIME: AN IMPORTANT KPI for technical choices on process & equipment engineering solutions ACTIVE MEMBER OF INTERBRANCH TASKFORCES & TEAMS (Waste water treatment Cies, Industry, Regulatory affairs…) to contribute to a global & balanced Environmental Performance DEFEND OUR VIRTUOUS MODEL vs disposable products, home washing & standard laundry washing.