COP21 - Challenges ahead and the role of Public-Privte Partnerships - Jan van Schoonhoven, Netherlands

COP21

Challenges ahead and the role of

Public-Private Partnerships

28 February 2016

Jan van Schoonhoven

• Senior Advisor to the Government (MFA, EA, I&E) on PPP and innovative financing : Special on Int. Water Ambition

– Executive Director of the UN PPP Centre of Excellence

– Director PPP of Ministry of Infrastructure

2 28 February 2016 Ministry of Infrastructure and the Environment

Content


COP21: The challenges, What Challenges?

COP21: Who creates the Challenge?

COP21: Are we addressing the Challenge?

COP21: What's next?

Climate Change Mitigation

Climate Change Adaption

Climate Adaptation PPP Trent

COP21 and PPP - Suggestion

COP21: The challenges, What Challenges?

• CNN report Anderson Cooper tossed five candidates (Governor Lincoln

Chafee, Maryland governor Martin O’Malley, former Secretary of State Hillary

Clinton’s, Senator Jim Webb and Vermont Senator Bernie Sanders) on stage

the question:

“What is the greatest national security threat to the United States?”

• All said things like Middle East, Nuclear Weapons and Instability except:

Bernie Sanders nomination for the biggest national security issue: climate

change.

4 Ministry of Infrastructure and the Environment 28 February 2016

COP21: Who creates the Challenge?

• CO2 emissions the main problem for climate change.

– Each year we release almost 30 billion tons of CO2 into the atmosphere,

mainly as a result of burning fossil fuels like coal, oil and natural gas.

• Who is ‘We’;

– The energy generation and associated infrastructure

– The transport and associated infrastructure

– The industry

– Our own households


COP21: Are we addressing the Challenge?

• Infrastructure GAP: annual 1 trillion estimated (UNCTAD)

– Infrastructure is one of the largest contributors to CO2

• Example: the world needs 200.000 houses a day

• A ton of cement/concrete produces 1 ton of CO2

• SDG focus on infra and economic development

• Erase Poverty : Resulting in an increase of CO2 (200 - 2000%)

• Energy for all : Coal and Fossil fuel still main source

: Traditional energy consumes mass water!

• Water for all : Making water cost much Energy!


COP21: What's next?

• Climate Adaptation

– CO2 Emissions will grow

– Adaptation is not a discussion

• Look at existing infrastructure

• Rebuild instead of build

• Innovation for less row materials

• Climate Mitigation

– Essential to fight CO2

– Infrastructure major role

– Producing Green Energy

– Innovation

• Essential for reduction

• Less raw materials


Climate Change Mitigation

• All clear:

– Energy main focus to reduce carbon dioxide

• Producing Green

• Use less

– PPP:

• Produce Green is one of the main investment in PPP the last 10 years

(wind and solar farms etc)

• Use less is one of the main topics in innovation and a large number of

partnerships are established


Climate Change Adaption

• Challenge

– Use less

– Invest in counter measures

• PPP Challenge

– Use less could be a new ‘asset’ to look from a PPP en investment

perspective (renovation of existing infrastructure);

• Buildings

• Road and Rail infra (use less, Rail could use an impulse)

• Repair investment (see example)



OECD Water Governance in Cities (2016): Water Infrastructure

Europe


OECD Water Governance in Cities (2016): Water Infrastructure

Europe

PPP and Climate Adaptation suggestion


Gemiddeld geven landen ongeveer 2-3% van hun BNP uit aan infrastructuur (NL zit op 1,4% in 2008, voor de crisis op de 2%), ter vergelijk, Nederland geeft bijna 10% van het BNP uit aan gezondheidszorg. Als overheden 3,5% van hun GDP zouden uitgeven aan infrastructuur dan was er geen tekort. Bij 3% is er een tekort van 8,4 triljoen en bij 2% een tekort van 24,6 triljoen(McKinsey). In de meeste rapportages wordt gesproken van een tekort van 1 triljoen op jaarbasis (UNCTAD) tot 2025. Om een gevoel van getallen te geven, het Nederlandse bruto nationaal product is 0,010 triljoen US$. Gemiddeld geven landen ongeveer 2-3% van hun BNP uit aan infrastructuur (NL zit op 1,4% in 2008, voor de crisis op de 2%), ter vergelijk, Nederland geeft bijna 10% van het BNP uit aan gezondheidszorg. Als overheden 3,5% van hun GDP zouden uitgeven aan infrastructuur dan was er geen tekort. Bij 3% is er een tekort van 8,4 triljoen en bij 2% een tekort van 24,6 triljoen(McKinsey). In de meeste rapportages wordt gesproken van een tekort van 1 triljoen op jaarbasis (UNCTAD) tot 2025. Om een gevoel van getallen te geven, het Nederlandse bruto nationaal product is 0,010 triljoen US$.

Infrastructure gap is around 1 Trillion US$

But ;

- App. 60% in Greenfield Projects – New Projects

- Remaining 40% in Brownfield Projects – Existing

-Example Afsluitdijk

- Water level higher

- Build something new

- Or existing

Afsluitdijk Project


The Afsluitdijk is existing Infrastructure an will de widened and higher

as result of climate change; A typical Climate Change Adaptation

Project.

https://www.youtube.com/watch?v=K-FsJ0s2Lz4




COP21 and PPP - Suggestion


Climate Change Mitigation:

Most effective:

- Produce Green (much appetite for PPP)

Climate Adaptation:

Next generation:

- Use Less and look at renovate existing Infrastructure

- Invest in developing PPP – Financing Structures

Thank You


Jan van Schoonhoven

InfraStructure and Innovative Financing

@: [email protected]

@: [email protected]

📞: +31652596136

Skype: jan-quietus

mailto:[email protected]







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COP21 - Challenges ahead and the role of Public-Privte Partnerships - Jan van Schoonhoven, Netherlands