1

Starting Conversations

An essential skill to serve as a catalyst to facilitate identification/exploration of initiatives for mutual benefit in a specified location, region or country

Facilitates understanding of affected stakeholder’s vision, objectives and criteria for success

2

Starting Conversations (cont)

Historically government departments, enterprises and citizen groups have for the most part pursued their own objectives independent of one another interacting primarily when there is a conflict of interest

3

Starting Conversations (cont)

Encourages leader champions regardless of whether they are in government, in business or a member of the public

Moves the relationship between parties within a given jurisdiction from being reactive to proactive

4

Starting Conversations (cont)

Applies to:

All of us as practitioners

Government Leader to Enterprise Leader

Enterprise Leader to Government Leader

Citizen Leader to Government/Enterprise Leader

Government and/or Enterprise Leader to Citizen Leader

5

Starting Conversations (cont)

The basics to making a difference:

Understand vision and objectives of stakeholders

Identify driving forces to achieve their vision and objectives

Facilitate opportunity development using this understanding and knowledge to generate tangible initiatives – ex. waste project can be tourism/health/economic development -- accessing money from different budgets

6

Source: World Bank, 1992

The Environmental SpectrumEnvironmental Issues

Dirty or Hard End Green or Soft End

Hazardous waste

Water pollution

Air pollution

Noise pollution

Smog

Acid rain

Decontamination

Toxic dumps

Ozone-shield damage

Recycling

Solid wastes

Involuntary resettlement

Accelerated soil erosion

Groundwater contamination

Jungle dwellers deracination

CO2 ‘Greenhouse’/global warming

Overpopulation

Habitat loss

Loss of genetic materials

Loss of biodiversity

Species extinction

Tropical deforestation

7

ImproperWaste

Management

Future Generations

Shifting of economic costs, health risks and ecological damage to those not yet born

Aesthetics

Litter contributing to image of a municipality being a dirty place

Economic Well Being

Higher costs to fix or replace poor infrastructure or contaminated site remediation

Health

Pathogen release from waste increasing disease transmission and health care costs

Peace of Mind

Feeling threatened by poor waste storage, collection, treatment and disposal practices

Recreation

Degraded quality of recreational land and assets

Economic Growth

Restricted by inefficient management of solid waste service delivery

Increased Flooding

Blockage of drainage courses, ditches and culverts due to litter

Poverty Alleviation

Discourages change in status quo for waste picker on landfills/informal recycling sector

Resource Depletion

Consumer society without organic/metal/plastic recycling initiatives

Air Quality

Emission release from landfills/incinerators/compost operations

Land Degradation

Through litter and improper siting of landfills

Groundwater Contamination

Through leachate from disposal sites

Surface Water Contamination

Through leachate from disposal sites and litter

Investment

Reduced because investors select cleaner more efficient cities in order to accommodate employee/family expectations

Global Warming

Methane gas emissions from organic waste decomposition in landfills

8

Stakeholders − Who are They?

Local, Regional, National Government Officials

Growing urban/migratory populations that require infrastructure (housing, sanitation, transportation, water)

International Finance Institutions/Aid Agencies

Enterprises

9

Stakeholder 1: Local, Regional, National Government OfficialsVision/Objectives

Emphasis is on:

Improving livability

Promoting competitiveness

Building credibility and bankability

Transparent governance and management

10

Stakeholder 2: The PeopleVision/Objectives

Emphasis is on quality of life:

Aesthetics Economic well-being Fairness Future generations Peace of mind Recreation Sense of community Environment (clean air, water, soil, etc.)

11

Stakeholder 3: International Finance Institutions and Aid AgenciesVision/Objectives

World Bank, EBRD, national aid agencies, etc.

Emphasis is on providing project loans or grants

Work sanctioned by receiving national government

Only those locations deemed a priority by the national government will have access to funds

12

Stakeholder 4: EnterprisesVision/Objectives

Engine of economy

Consists of:

• Small and medium enterprises• Domestic non-state enterprises• State-owned enterprises• Multinational enterprises• Global 500 enterprises

Triple bottom line and corporate social responsibility

13

“Insanity − doing the same thing over and over again expecting different results”

Albert Einstein

14

Local, Regional, National GovernmentDrivers

Growing urban centres require infrastructure (housing, sanitation, transportation, water)

Urban centres’ problems/solutions affect surrounding jurisdictions

Information availability

Operations

Financing

Institutional arrangements

15

The PeopleDrivers

Quality of life

Efficient and transparent service delivery

16

Business Model of IFIs

UrbanSanitation

Project

UrbanSanitation

Project

UrbanSanitation

Project

UrbanSanitation

Project

UrbanSanitation

Project

UrbanSanitation

Project

UrbanSanitation

Project

UrbanSanitation

Project

UrbanSanitation

Project

Barrier

Barrier

Barrier

Barrier

• Only 10% of cities will have access to IFI funds

• Remaining cities and towns left on their own requiring a ‘made in Ukraine’ solution

World BankEBRD

Other IFIs

Ba

rrie

r

Ba

rrie

r

17

EnterprisesDrivers

18

Enterprises-Leading Edge Will InvestDrivers

Realize a rate of return ($)

Build political capital (influence)

Build symbolic capital (impact reduction)

Build intellectual capital (competitive advantage)

19

Project Finance Structure

20

Case Study: Starting Conversations

Climate change adaptation and mitigation

Local Environment Action Program (LEAP)

Urban environment and climate change centre

21

Case Opportunity: Climate Change Adaptation/Mitigation

Concept: Link climate change footprint, infrastructure, adaptation, mitigation to supply chain vulnerability analysis mitigation and adaptation

Local, Regional, National Government

Provision of Services

Enterprises

- Supply Chain Vulnerability

- Link to CSR Programs

IFI and Aid Agencies

Financing

HealthCitizens/workers, livestock, wildlife, agriculture

EnergyQuality, supply, reliability

WaterQuality, supply

Emergency ServicesFlood, fire

Citizens

Qualify of Life

22

Case Opportunity: Climate Change Adaptation/MitigationConverging Interests of Stakeholders

Change to Climate Variable Examples of Impacts

Higher Mean Temperatures Increased evaporation and decreased water balance Increased severity of droughts

High Maximum Temperatures Increased electric cooling demand Reduced energy supply reliability

Higher Minimum Temperatures Extended range and activity of pests/disease vectors

Decrease in Precipitation Decreased water quality and resources Impacts on rivers/hydro potential

Increased Severity of Drought Damage to infrastructure foundations

More Intense Rain Increased run-off/erosional flooding Pressure on disaster relief

Increased Storm Intensity Infrastructure damage

23

Case Study:Local Environment Action Plan

Business works together in 3 different models to bring focussed investment-China example

24

Strategies for Implementation ofManagement/Regulatory Initiatives

25

LEAP Program

26

Linkages

27

Starting Conversations − Summary

Starting conversations is successful if developed for mutual benefit

Need a catalyst; someone with passion, with an idea to start things rolling; cannot wait for someone else to do it

Stakeholders need to minimize duplication, maximize exposure and avoid partner fatigue by doing their homework and setting priorities

Learn the Vision, Objectives and Drivers of the other stakeholders and make an offer in their Language of Decision