Brown gold - Gearing the value of externalities with waste reuse business
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Brown gold - waste reuse business holds an enormous potential to create value and exploit the reduction of social and environmental problems.
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Brown gold - Gearing the value of externalities with waste reuse business
- 1. Gearing the value of externalities in low-income countries Waste reuse business models
- 2. Presentation by Jasper Buijs Resource Recovery & Reuse, IWMI October 2013
- 3. So what’s the problem? Roughly 2.6 billion people lack access to adequate sanitation That’s almost half… …the entire global population
- 4. Why is that a problem? Because about 24% of the global disease burden and 23% of all deaths can be attributed to environmental factors related to lacking sanitation Besides causing pain and discomfort, that is a huge cost to society
- 5. Some more numbers Ca. 20 million ha. of worldwide farmland are irrigated with poorly treated wastewater, producing crops consumed by an estimated 10% of the world’s people! Current sanitation systems annually dump waste into water bodies with a nutrient value euivalent to 50 million tons of fertilizer, worth ca. 15 billion USD! Ecosystems provide a worth of 33 trillion USD per year. 60% of this value correlates with nutrient cycling, pollution control and waste management
- 6. So bring a solution! Wait! There are additional factors that complicate finding solutions. Let’s examine: People are tired of seeing public money wasted. Development initiatives need to create more impact per dollar spent
- 7. Also, making sure there is a market mechanism for the development solution is a good way to create more impact per dollar invested, but: Sanitation improvements take high investments, an d… …low incomes often don’t support productmarket combinations that drive cost recovery or profits
- 8. And… due to this, the sanitation sector is characterized by heavy subsidization, maki ng market-based solutions still harder to achieve
- 9. So what IS a solution? To bring marketable solutions, more value has to be freed, so as to carry the cost of sanitation developments. The central idea is that exploiting positive social – and environmental effects, though often not directly monetized in a business model, generates indirect value that can be used in business models to create additional opportunities
- 10. Waste reuse business Waste reuse business sorts a double value-add effect: 1) Social and environmental burden already present is reduced. Since a burden is a cost, it thus saves money. 2) It generates additional value by producing products from waste that have value in the market (e.g. irrigation water, compost, soil conditioner, biogas, carbon credits, etc.) Existing value pool (value lost to neg. externalities) Total value pool (loss averted) Added value
- 11. Waste reuse business Waste is a wrong word. It is a resource that can be supplied. It is not a problem but a possibility. Not a potential cost, but a potential revenue. It should be reused instead of disposed.
- 12. Waste reuse options Waste streams Resource Wastewater Water (irrigation, aquifer, drinking water) Faecal sludge Nutrients (org. fertilizer, soil conditioner) Urine Reuse Energy Municipal solid waste Aquaculture Agro-waste Aquifer recharge, drinking water Fuel Agriculture Landscaping, h orticulture Electricity Industry
- 13. Value propositions 1) Reducing burden already present, e.g. a. Reduced pollution of water bodies lowers treatment bills, reducing water-borne diseases morbidity b. Reduced presence of municipal solid waste in cities, reducing transport costs, reducing foul odors c. Reduced emission of greenhouse gasses 2) Useful products, e.g. a. Irrigation water in otherwise water-scarce areas b. Biogas-produced electricity for industries and farming that cuts down M&O costs c. Low-cost organic fertilizers and soil conditioners that improve long-term productivity of soil
- 14. How to realize such value? Let’s look at several business models that are currently being used or are conceivable to succeed in low-income countries* *Using the business model canvas as developed by Y. Pigneur, A. Osterwalder et al.
- 15. How to realize such value? For our assessment of the value of the externalities, we will add the third bottom line.
- 16. City-scale phyto-remediative wastewater treatment & fish production Wastewater + duckweed Farmers Quality-checked consumption fish + clean water Municipality $ $ Private enterprise $ Clean water Expertise, finance Land Ww Finance External financier Waste stabilization Fish (QC’d) Export & domestic markets Public-Private Partnership
- 17. City-scale phyto-remediative wastewater treatment & fish production Key Partners • • • Key Activities Internalization wastewater Central • Treat of externality process & sell fish government • Grow, value & external financier Farmers Municipality Key Resources • • • • Free wastewater Farmer land and communal labour Expertise duckweed-fish system Capital Value Propositions • • Customer Relationships Processed & packaged fish for domestic & export markets. Partnered wastewater Channels treatment (free) saves treatment Actual direct costs for municipality & value saves fresh water. Cost Structure • • • Municipality Domestic & export markets for packaged fish Revenue Streams • • • Customer Segments Capital investment O&M Debt repay & equity Social & environmental costs Externality value Sale of processed & packaged fish to domestic & export markets Social & environmental benefits • • • • Reduced pollution of water bodies. Increased water availability Reduction of water-borne diseases morbidity, and reduced associated health & economic costs in the locality Increased value of the area
- 18. Lessons 1. Non-monetary, potential value of environmental stress relief & water stress relief are internalized into the business model by means of municipal interest. 2. Non-monetary value is tranlated into monetary value by municipality’s profitable participation in PPP arrangement for which they supply for free, city’s wastewater. 3. Translation of non-monetary value into real value (cost saving and product realization) and significant upside justifies capital investment for infrastructure under loan conditions. 4. Distribution among different stakeholders of key resources for joint venture enables innovative form of benefit sharing (equity for farming communities, municipality and private company).
- 19. Low-cost fuel briquettes from agricultural waste and organic municipal solid waste Organic solid waste Clean-burn fuel briquettes + CO2 emissionsreduction Kilns, training Farmers $ Waste $ Logistics company Charcoal powder Agro $industry, municipal ity Waste Presses, training Micro-franchisees $ Briquettes $ $ Private enterprise $ Briquettes Households Briquettes $ Micro-retailers Distributors $ Briquettes Industry
- 20. Low-cost fuel briquettes from agricultural waste and organic municipal solid waste Key Partners Key Activities Value Propositions • Translates into Briquettes trading (buy – package • Cheap and clean-burning fuel briquettes competitive value -resell) and production offer (low- • Training franchisees & farmers • Simple, steady income cost, clean) • Production & sale/lease of kilns, generation by franchising pressing machines charcoal pressing machine • Kiln lease to farmers for Key Resources income generation through • Know-how low-cost technology sale of charcoal powder • Network of franchisees and Low-margin but retailers steady value for 3 • (External factors = Government different types of incentives pro alternative energy; actors rising charcoal prices) Customer Relationships Customer Segments • Personal help at direct sales • Households • Industry • Microfranchisees • Farmers Channels • Distributors • Micro retailers • Micro franchisees Cost Structure Revenue Streams • Investment • O&M • Sale of briquettes • Franchising fees • Lease of Kilns Social & environmental costs Social & environmental benefits Externality value in light of gov’t policy Growing network ensuring steady income, enabling reinvestment and growth • Reduced rate of deforestation • Reduced GHG emissions (reduced solid waste to CO2, reduced fire wood burning, ‘good charcoal substitutes bad charcoal’ • Better solid waste management
- 21. Lessons 1. The potential value of externalities is internalized by capitalizing on the development of (low-cost) technology that complies with gov’t regulation and takes advantage of charcoal price increase. 2. Externalities’ non-monetary value is captured within the character of the product and the production processes, claiming cost leadership and cleaner burning, as well as waste removal. 3. Direct value is, beside the enterprise itself, also distributed among 3 other value chain actors by means of business strategy (kiln leasing, press franchising, distribution by distributors and micro-retailers 4. Locally well-integrated, the business system allows small, but steady margins for a network of different stakeholders, enabling company’s mild but steady growth, and steadily growing positive externalities.
- 22. Livestock waste for carbon credits and biogas-based energy Livestock waste Meat products Meat markets Biogas-based energy + carbon credits slaughter animals Meat products $ enterprise Manure $ Farms $ Biogas $ Energy Bio-digesters on BOT Finance Bio-digesters pay-back on BOT Supplier $ Equipment Enterprise’s $ sustainability $ branch $ CO2 emission reductions Carbon credits market Share of carbon credit value
- 23. Livestock waste for carbon credits and biogas-based energy Key Partners Key Activities Value Propositions Customer Relationships Customer Segments • • • • • • • • Livestock farmers External financier Equipment suppliers • • • Installation of biodigester on farms on BOT basis Managing CDM processes & obtaining carbon credits Processing, and selling meat Branding & marketing Key Resources • • • • • • Bio-digesters, gas volume measurement equipment& technical know-how Brands, green reputation Internalized by Investment capital incorporation of Farms’ supply loyalty (External factors = Regulation and/or company’s perception of good waste management) Cost Structure • • • • Environmentally sustainably produced meat. Tradable carbon credits to meet carbon emission reduction commitments Improved environmental health through GHG emission reductions, reduced pollution of water bodies and soils Personal Registered as CDM at UNFCCC • Channels • • Meat chain distributors Carbon credit trading platforms sustainability branchRevenue Streams • • Capital investment cost Equipment supplies On-farm training Meat sales to ‘green’ consumers Carbon credits from sales of GHG emission reduction. • Social & environmental costs Externality value in light of gov’t policy • ‘Green’ meat consumers Annex 1 countries Translation into real value through multiple revenue lines Social & environmental benefits • • • • Reduced GHG emissions from associated farms. Reduced pollution of water bodies and soils Improved animal waste management system and better working conditions, less odor. Improved social and economic sustainability of swine farms.
- 24. Lessons 1. The potential value of externalities is internalized by capitalizing on compliance with gov’t regulation and the incorporation of a company branch focusing on an optimized compliance business strategy 2. Externalities’ non-monetary value is captured within the character of the product and the production processes, claiming quality leadership as well as GHG emission reduction and waste removal. 3. Actual direct value is translated from externalities’ indirect value through accessing additional (green) markets and fetching associated premium prices, and through credits for GHG emission reductions 4. Benefits are shared with other value chain actors: Farms’ M&O reduction; Farms’ income diversification and increase; Increased network and revenue for materials suppliers.
- 25. Compilation of externality value mechanisms Internalization because Community interest Municipal interest Industry and/or farming interest Gov’t regulation Internalization by Translation into direct value by Other direct value generated Benefits distribution, because 1 2-3 2-3 1 Community mobilization Industry branching Adapted product, value offer Partnership arrangement Products sold Price fetched Costs averted Investment outlook improved Network & partnerships growth Business risk reduction Partner/customer cost reduction + productive capacity community Partner/customer income increase Network/partnership value Prior distribution key resources Geographical characteristics * 1 = Sometimes, 2 = Regularly, 3 = Very often 1 1 2-3 2-3 3 1 1-2 2 2 1 3 1 3 2-3 3 1
- 26. Observation The value that waste reuse business generates for itself and its customers, in lowincome countries, is very much bound by high Interdependency among different value chain actors. Sufficient value is often generated only when they all take part in receiving direct benefits
- 27. Analyze business ecosystems Because business settings feature high stakeholder interdependencies, we need to analyze business opportunities based on the entire business ecosystem. This implies finding the most salient factors throughout the business ecosystem (i.e. those factors with highest repetition, and/or of highest value or impact). It could imply developing a new way to use the business model canvas.
- 28. Conclusions 1. Waste reuse business models have great development potential, because they sort both effects of reduction of current problems (and associated costs) as well as effects of increase of productivity (and income). 2. The indirect value of externalities can be internalized into waste reuse business models and subsequently translated into generation of additional direct value, increasing the financial viability of a larger variaty of development opportunities. 3. A variety of routes to internalization and translation exist, but the most common are: Internalization by munipal interest, through adapted products and value offers, and through enabling partnership arrangements. Translation through products sold, and to slightly lesser extent through improved investment outlook and averted costs.
- 29. Conclusions - continued 4. Direct value benefits are distributed among different stakeholders in the waste reuse value chain for a variety of reasons, but most commonly because of the multiple benefits-character of the businesses that appeals to different stakeholders, because of the value of the networks and partnerships, and because of the prior distribution of key resources. 5. Business settings in low-income countries exhibit high interdependency among different value chain actors. The value that businesses generate for themselves and their customers, as well as the additional value that can be won from internalizing and translating externality value, can often materialize only when business settings enable the distribution of direct benefits among (many) different value chain actors.
- 30. Credits • Building on joint work with: • Other team members of the RRR group at IWMI in Sri lanka and IWMI-Ghana office (Pay Drechsel, Miriam Otoo, Krishna C. Rao, George Danso, Solomie Gebrezgabher) • International Centre for Water Management Services, Switzerland
Editor's Notes
- PPP between private treatment enterprise, municipality and farming communities, receiving equity in the PPP.
- It is the non-monetary value of ‘reduced pollution of water bodies’ and the ‘increased water availability’ that is internalized (valued) in the model by means of the interest of the municipality. It is because of this potential value for them that they decide to partner in the PPP and provide the city’s wastewater for free to the treatment project (since ‘increased water availability’ and ‘reduced pollution of water bodies’ has a potentially higher value to it). Free supply of wastewater to the treatment project means lower M&O and thus higher profitability. In turn, this positive outlook toward profits has spurred government and external financiers to financially support the investments for the project. This has led to the set-up of a PPP in which the treatment enterprise (for finance, management and technical expertise), the municipality (for its wastewater) and farmer communities (for their land and communal labor) are partners and obtain equities.Key resources (land, wastewater, expertise and finance) come from different stakeholders, opening an avenue for profit distribution among these different stakeholders in the value chain.
- Low-cost technology, low-cost product: support profit distribution among multiple value chain stakeholders, thus realizing development goals as well.Low-cost briquette: consumer drive 1.Greener energy: consumer drive 2, and government drive 1.Briquettes burn cleaner = Co2 reduction (otherwise through fire wood burning)Solid waste is reused = Co2 reduction.Locality-scale (left side). Large-scale (right side) comes with vertical integration of waste processing into charcoal and charcoal pressing into briquettes.
- Rising charcoal prices and government intervention via stimulation of more sustainable production processes/energy.EFA very sustainable production technology:Using otherwise wasted oil drumsReusing otherwise CO2-producing unmanaged solid waste.Stimulating substitution of fire wood by sustainably produced charcoal.Less CO2 emission via clean-burning charcoal than via fire wood.No electricity used in production of briquettes.
- Sustainability through:Reduced GHG emissions (manure converted; biogas-based electricity substituting less sustainable energy consumption)(External) Energy consumption reductionIncreased income farmsValue through:Increased supply farm-loyaltyCompany image/green branding possibilitiesInvestment funds from Development Bank or other external stakeholder, because of positive externalitiesExternality value:Reduced pollution of water bodies and soilsReduced foul odors
- Sustainability through:Reduced GHG emissions (manure converted; biogas-based electricity substituting less sustainable energy consumption)(External) Energy consumption reductionIncreased income farmsValue through:Increased supply farm-loyaltyCompany image/green branding possibilitiesInvestment funds from Development Bank or other external stakeholder, because of positive externalitiesImproved farm cost effectivity, by reducing M&O costs (energy expenditure)Externality value:Reduced pollution of water bodies and soilsReduced foul odorsFinancials: Investment costs – covered by Enterprise;Costs for training farmers - covered by Enterprise; Operational costs – covered by farms;Maintenance costs – covered from carbon credit
- Mezquital (Mexico – aquifer recharge)Internalization of indirect value (lower exposure of city to untreated wastewater, improved levels of groundwater reserves) through interest of municipality/city (potentially less spending on treatment and/or pumping; more fresh water availability)Translation of indirect value by means of PPP, through which increased amounts of fresh water can be supplied to the city (Mexico city), as well as wastewater can be sold to farmers.Benefits distributed between city (more, cheaper fresh water), enterprise (profits, esp. if no WWTP), farmers (income through high-nutrient production, no fertilizer cost). Factors of influence to this: geographical characteristics – farming proximity to aquifer, type of soil and bedrock; wastewater reuse for cropping allowed and/or farmers prefer to tap wastewater directly. High level of irrigation practices including storage and transport of wastewater in unlined dams and channels. A WWTP may exist or not.Cochabamba (Bolivia – wastewater & freshwater exchange)Internalization of indirect value (more fresh water availability) through interest of city. Also interest of food-processing industry and associated farmers: higher production, lower costs due to wastewater.Translation into direct value by means of the exchange of wastewater (for irrigation) and fresh water. Fresh water is saved, lowering treatment costs. Also by means of averting cost of fertilization (farmers) and higher productivity (farmers and food-processing industry).(Cost of health risks/health risks mitigation: crops irrigated with wastewater.)Benefits distribution between city (more, cheaper fresh water available), enterprise (profits), farmers (fertilizer cost reduction, productivity increase), associated industry (higher productivity from associated farms, as they have an interest in crops for processing/sales). Crucial factors: availability of crop-buying industry and preferably processing industry concerning lower health risks of this; agreement for extraction of equal amounts of fresh water by enterprise for wastewater reused.Santacruz (bolivia – wastewater to carbon credits)Internalization of indirect value (Reduction of pollution of water bodies; reduction of odors; unavailable sanitation solutions for parts of the city) by means of interest of a city authority.Translation of indirect value through formation of a partnership between WWTP operator and a sanitation services provider, which enables valuing wins from processing wastewater gasses into CO2 (flaring captured biogas) or into electricity (converting captured biogas), and converting direct value potential (carbon credits) into improved sanitation services.Benefits distributed between WWTP operator (profits), Sanitation services provider (profits) and city (lowered bills and improved sanitation situation).Direct value in the form of profit outlook, translated from internalized indirect value, also enables infrastructure investment into the project (biogas capture and flaring/conversion installations) and enables high-value partnership formation with global partner(s) for carbon emission reductions marketing.BM ww treatment for irrigation & compostInternalization of indirect value (reduced pollution of water bodies, more water availability) by means of municipal interestTranslation of indirect value through formation of a partnership between WWTP operator and a sanitation services provider, or the attraction of a private enterprise, which enables valuing wins from converting wastewater gasses or into electricity (converting captured biogas), and converting direct value potential (compost, cost reduction from electricity usage, irrigation water) into improved sanitation services.Benefits distributed between WWTP operator (profits), Sanitation services provider (profits) and city (lowered bills and improved sanitation situation, more water availability).Direct value in the form of profit outlook or cost recovery, translated from internalized indirect value, also enables infrastructure investment into the project (biogas capture and conversion installations, and composting station) and enables high-value partnership formation with financiers.BM MSW collection service and low-cost organic fertilizerInternalization of indirect value (reduced pollution of water bodies,) by means of municipal interestTranslation of indirect value through partnership formation industrial entity and city, into direct value: reduction of waste management cost for city; compost; management feesBenefits distributed between city (lowered waste management bill) and industrial entity (profits/cost recovery), because of partnership (income & cost reduction).BM FS collection and farm useInternalization of indirect value (reduced urban unsanitary situations & health problems, reduced environmental stress) by means of industry interest/need exploitation through a specialized value offerTranslation of indirect value through value offer, into direct value: cheap manure (farmers save fertilizer costs), collection feesBenefits distributed between private enterprise (profits), farmers (save on fertilization costs), because partners (farmers) are customers.BM MSW to organic fertilizer and carbon emission reductionsInternalization of indirect value (reduced urban unsanitary situations & health problems, reduced environmental stress) by means of municipal interest and industry partnership potential (for carbon credits)Translation of indirect value through partnership development (supply MSW by city – waste management services by enterprise), into direct value: sales of compost and carbon creditsBenefits distributed between city (income from selling waste), enterprise (profit or cost recovery) and farmers (cheaper organic fertilizer with good long-term effects on soil), because of partnerships (incomes and cost reductions).Other benefits: city creates income by selling waste, instead of spending on its management.BM Dry Fuel manufacturing (= Ecofuel Africa – like model = BM example 2)BM Onsite energy generation from MSW (= Sadia – like model = BM example 3)Tosha model – community-based sanitation services business (= BM Onsite Energy generation in Enterprise providing sanitation service)Externality value internalized because of: industry opportunity.Internalized by: community interest, partnership development.Translated into direct value through: interest = willingness to pay for sanitation, value propositionDirect value: fees, cost saving enterprise, carbon credits & fertilizer sales.Value distributed between: enterprise (profits), associated entrepreneurs (rental service of enterprise brings them business opps), farmers (saving on fertilizers by buying very cheap fertilizer).Value is distributed because: multiple types of benefits (= partner/customer income increase), community interest (= network/partnership value).Other values: Community welfare and improved means for further economic developmentBM Independent power developer using MSW – service to communitiesExternality value (improved social-economic situation, better waste management) internalized because of: Community interest, industry interest.Internalized by means of/translation through: community mobilization, specialized product (price & services agreement for electricity) (=value offer).Direct value: carbon credits, electricity & services sold, compost by-product.Direct benefits distributed among: enterprise (profits: modest), farmers (cost reduction on fertilization).Benefits distributed because: multiple types of benefits (= partner/customer income increase), community interest (= network/partnership value).Other benefits: Community welfare and improved means for further economic development, municipality reduced waste bill.BM Independent power developer using MSW – grid salesExternality value internalized because of: municipal interest, industry interestInternalized by means of/translation through: adapted product/value offer (green electricity), partnership formation (with municipality – for waste collection).Direct value translated: electricity units sold, waste collection fees, carbon credits, compost by-product. Profitable model that allows attracting investment as well.Direct value distributed: enterprise (profits), farmers (cost reduction due to cheap fertilizer, municipality (waste management bill reduction), electricity board/distributors (green electricity sells at premium).Distribution because of: multiple types of benefits (= partner/customer income increase), Other benefits: municipality reduced waste bill, farmers reduced fertilization cost.BM Independent power developer using agro & animal waste = BM Independent power developer using MSW.
- Mezquital (Mexico – aquifer recharge)Internalization of indirect value (lower exposure of city to untreated wastewater, improved levels of groundwater reserves) through interest of municipality/city (potentially less spending on treatment and/or pumping; more fresh water availability)Translation of indirect value by means of PPP, through which increased amounts of fresh water can be supplied to the city (Mexico city), as well as wastewater can be sold to farmers.Benefits distributed between city (more, cheaper fresh water), enterprise (profits, esp. if no WWTP), farmers (income through high-nutrient production, no fertilizer cost). Factors of influence to this: geographical characteristics – farming proximity to aquifer, type of soil and bedrock; wastewater reuse for cropping allowed and/or farmers prefer to tap wastewater directly. High level of irrigation practices including storage and transport of wastewater in unlined dams and channels. A WWTP may exist or not.Cochabamba (Bolivia – wastewater & freshwater exchange)Internalization of indirect value (more fresh water availability) through interest of city. Also interest of food-processing industry and associated farmers: higher production, lower costs due to wastewater.Translation into direct value by means of the exchange of wastewater (for irrigation) and fresh water. Fresh water is saved, lowering treatment costs. Also by means of averting cost of fertilization (farmers) and higher productivity (farmers and food-processing industry).(Cost of health risks/health risks mitigation: crops irrigated with wastewater.)Benefits distribution between city (more, cheaper fresh water available), enterprise (profits), farmers (fertilizer cost reduction, productivity increase), associated industry (higher productivity from associated farms, as they have an interest in crops for processing/sales). Crucial factors: availability of crop-buying industry and preferably processing industry concerning lower health risks of this; agreement for extraction of equal amounts of fresh water by enterprise for wastewater reused.Santacruz (bolivia – wastewater to carbon credits)Internalization of indirect value (Reduction of pollution of water bodies; reduction of odors; unavailable sanitation solutions for parts of the city) by means of interest of a city authority.Translation of indirect value through formation of a partnership between WWTP operator and a sanitation services provider, which enables valuing wins from processing wastewater gasses into CO2 (flaring captured biogas) or into electricity (converting captured biogas), and converting direct value potential (carbon credits) into improved sanitation services.Benefits distributed between WWTP operator (profits), Sanitation services provider (profits) and city (lowered bills and improved sanitation situation).Direct value in the form of profit outlook, translated from internalized indirect value, also enables infrastructure investment into the project (biogas capture and flaring/conversion installations) and enables high-value partnership formation with global partner(s) for carbon emission reductions marketing.BM ww treatment for irrigation & compostInternalization of indirect value (reduced pollution of water bodies, more water availability) by means of municipal interestTranslation of indirect value through formation of a partnership between WWTP operator and a sanitation services provider, or the attraction of a private enterprise, which enables valuing wins from converting wastewater gasses or into electricity (converting captured biogas), and converting direct value potential (compost, cost reduction from electricity usage, irrigation water) into improved sanitation services.Benefits distributed between WWTP operator (profits), Sanitation services provider (profits) and city (lowered bills and improved sanitation situation, more water availability).Direct value in the form of profit outlook or cost recovery, translated from internalized indirect value, also enables infrastructure investment into the project (biogas capture and conversion installations, and composting station) and enables high-value partnership formation with financiers.BM MSW collection service and low-cost organic fertilizerInternalization of indirect value (reduced pollution of water bodies,) by means of municipal interestTranslation of indirect value through partnership formation industrial entity and city, into direct value: reduction of waste management cost for city; compost; management feesBenefits distributed between city (lowered waste management bill) and industrial entity (profits/cost recovery), because of partnership (income & cost reduction).BM FS collection and farm useInternalization of indirect value (reduced urban unsanitary situations & health problems, reduced environmental stress) by means of industry interest/need exploitation through a specialized value offerTranslation of indirect value through value offer, into direct value: cheap manure (farmers save fertilizer costs), collection feesBenefits distributed between private enterprise (profits), farmers (save on fertilization costs), because partners (farmers) are customers.BM MSW to organic fertilizer and carbon emission reductionsInternalization of indirect value (reduced urban unsanitary situations & health problems, reduced environmental stress) by means of municipal interest and industry partnership potential (for carbon credits)Translation of indirect value through partnership development (supply MSW by city – waste management services by enterprise), into direct value: sales of compost and carbon creditsBenefits distributed between city (income from selling waste), enterprise (profit or cost recovery) and farmers (cheaper organic fertilizer with good long-term effects on soil), because of partnerships (incomes and cost reductions).Other benefits: city creates income by selling waste, instead of spending on its management.BM Dry Fuel manufacturing (= Ecofuel Africa – like model = BM example 2)BM Onsite energy generation from MSW (= Sadia – like model = BM example 3)Tosha model – community-based sanitation services business (= BM Onsite Energy generation in Enterprise providing sanitation service)Externality value internalized because of: industry opportunity.Internalized by: community interest, partnership development.Translated into direct value through: interest = willingness to pay for sanitation, value propositionDirect value: fees, cost saving enterprise, carbon credits & fertilizer sales.Value distributed between: enterprise (profits), associated entrepreneurs (rental service of enterprise brings them business opps), farmers (saving on fertilizers by buying very cheap fertilizer).Value is distributed because: multiple types of benefits (= partner/customer income increase), community interest (= network/partnership value).Other values: Community welfare and improved means for further economic developmentBM Independent power developer using MSW – service to communitiesExternality value (improved social-economic situation, better waste management) internalized because of: Community interest, industry interest.Internalized by means of/translation through: community mobilization, specialized product (price & services agreement for electricity) (=value offer).Direct value: carbon credits, electricity & services sold, compost by-product.Direct benefits distributed among: enterprise (profits: modest), farmers (cost reduction on fertilization).Benefits distributed because: multiple types of benefits (= partner/customer income increase), community interest (= network/partnership value).Other benefits: Community welfare and improved means for further economic development, municipality reduced waste bill.BM Independent power developer using MSW – grid salesExternality value internalized because of: municipal interest, industry interestInternalized by means of/translation through: adapted product/value offer (green electricity), partnership formation (with municipality – for waste collection).Direct value translated: electricity units sold, waste collection fees, carbon credits, compost by-product. Profitable model that allows attracting investment as well.Direct value distributed: enterprise (profits), farmers (cost reduction due to cheap fertilizer, municipality (waste management bill reduction), electricity board/distributors (green electricity sells at premium).Distribution because of: multiple types of benefits (= partner/customer income increase), Other benefits: municipality reduced waste bill, farmers reduced fertilization cost.BM Independent power developer using agro & animal waste = BM Independent power developer using MSW.
- Mezquital (Mexico – aquifer recharge)Internalization of indirect value (lower exposure of city to untreated wastewater, improved levels of groundwater reserves) through interest of municipality/city (potentially less spending on treatment and/or pumping; more fresh water availability)Translation of indirect value by means of PPP, through which increased amounts of fresh water can be supplied to the city (Mexico city), as well as wastewater can be sold to farmers.Benefits distributed between city (more, cheaper fresh water), enterprise (profits, esp. if no WWTP), farmers (income through high-nutrient production, no fertilizer cost). Factors of influence to this: geographical characteristics – farming proximity to aquifer, type of soil and bedrock; wastewater reuse for cropping allowed and/or farmers prefer to tap wastewater directly. High level of irrigation practices including storage and transport of wastewater in unlined dams and channels. A WWTP may exist or not.Cochabamba (Bolivia – wastewater & freshwater exchange)Internalization of indirect value (more fresh water availability) through interest of city. Also interest of food-processing industry and associated farmers: higher production, lower costs due to wastewater.Translation into direct value by means of the exchange of wastewater (for irrigation) and fresh water. Fresh water is saved, lowering treatment costs. Also by means of averting cost of fertilization (farmers) and higher productivity (farmers and food-processing industry).(Cost of health risks/health risks mitigation: crops irrigated with wastewater.)Benefits distribution between city (more, cheaper fresh water available), enterprise (profits), farmers (fertilizer cost reduction, productivity increase), associated industry (higher productivity from associated farms, as they have an interest in crops for processing/sales). Crucial factors: availability of crop-buying industry and preferably processing industry concerning lower health risks of this; agreement for extraction of equal amounts of fresh water by enterprise for wastewater reused.Santacruz (bolivia – wastewater to carbon credits)Internalization of indirect value (Reduction of pollution of water bodies; reduction of odors; unavailable sanitation solutions for parts of the city) by means of interest of a city authority.Translation of indirect value through formation of a partnership between WWTP operator and a sanitation services provider, which enables valuing wins from processing wastewater gasses into CO2 (flaring captured biogas) or into electricity (converting captured biogas), and converting direct value potential (carbon credits) into improved sanitation services.Benefits distributed between WWTP operator (profits), Sanitation services provider (profits) and city (lowered bills and improved sanitation situation).Direct value in the form of profit outlook, translated from internalized indirect value, also enables infrastructure investment into the project (biogas capture and flaring/conversion installations) and enables high-value partnership formation with global partner(s) for carbon emission reductions marketing.
- Mezquital (Mexico – aquifer recharge)Internalization of indirect value (lower exposure of city to untreated wastewater, improved levels of groundwater reserves) through interest of municipality/city (potentially less spending on treatment and/or pumping; more fresh water availability)Translation of indirect value by means of PPP, through which increased amounts of fresh water can be supplied to the city (Mexico city), as well as wastewater can be sold to farmers.Benefits distributed between city (more, cheaper fresh water), enterprise (profits, esp. if no WWTP), farmers (income through high-nutrient production, no fertilizer cost). Factors of influence to this: geographical characteristics – farming proximity to aquifer, type of soil and bedrock; wastewater reuse for cropping allowed and/or farmers prefer to tap wastewater directly. High level of irrigation practices including storage and transport of wastewater in unlined dams and channels. A WWTP may exist or not.Cochabamba (Bolivia – wastewater & freshwater exchange)Internalization of indirect value (more fresh water availability) through interest of city. Also interest of food-processing industry and associated farmers: higher production, lower costs due to wastewater.Translation into direct value by means of the exchange of wastewater (for irrigation) and fresh water. Fresh water is saved, lowering treatment costs. Also by means of averting cost of fertilization (farmers) and higher productivity (farmers and food-processing industry).(Cost of health risks/health risks mitigation: crops irrigated with wastewater.)Benefits distribution between city (more, cheaper fresh water available), enterprise (profits), farmers (fertilizer cost reduction, productivity increase), associated industry (higher productivity from associated farms, as they have an interest in crops for processing/sales). Crucial factors: availability of crop-buying industry and preferably processing industry concerning lower health risks of this; agreement for extraction of equal amounts of fresh water by enterprise for wastewater reused.Santacruz (bolivia – wastewater to carbon credits)Internalization of indirect value (Reduction of pollution of water bodies; reduction of odors; unavailable sanitation solutions for parts of the city) by means of interest of a city authority.Translation of indirect value through formation of a partnership between WWTP operator and a sanitation services provider, which enables valuing wins from processing wastewater gasses into CO2 (flaring captured biogas) or into electricity (converting captured biogas), and converting direct value potential (carbon credits) into improved sanitation services.Benefits distributed between WWTP operator (profits), Sanitation services provider (profits) and city (lowered bills and improved sanitation situation).Direct value in the form of profit outlook, translated from internalized indirect value, also enables infrastructure investment into the project (biogas capture and flaring/conversion installations) and enables high-value partnership formation with global partner(s) for carbon emission reductions marketing.
- Mezquital (Mexico – aquifer recharge)Internalization of indirect value (lower exposure of city to untreated wastewater, improved levels of groundwater reserves) through interest of municipality/city (potentially less spending on treatment and/or pumping; more fresh water availability)Translation of indirect value by means of PPP, through which increased amounts of fresh water can be supplied to the city (Mexico city), as well as wastewater can be sold to farmers.Benefits distributed between city (more, cheaper fresh water), enterprise (profits, esp. if no WWTP), farmers (income through high-nutrient production, no fertilizer cost). Factors of influence to this: geographical characteristics – farming proximity to aquifer, type of soil and bedrock; wastewater reuse for cropping allowed and/or farmers prefer to tap wastewater directly. High level of irrigation practices including storage and transport of wastewater in unlined dams and channels. A WWTP may exist or not.Cochabamba (Bolivia – wastewater & freshwater exchange)Internalization of indirect value (more fresh water availability) through interest of city. Also interest of food-processing industry and associated farmers: higher production, lower costs due to wastewater.Translation into direct value by means of the exchange of wastewater (for irrigation) and fresh water. Fresh water is saved, lowering treatment costs. Also by means of averting cost of fertilization (farmers) and higher productivity (farmers and food-processing industry).(Cost of health risks/health risks mitigation: crops irrigated with wastewater.)Benefits distribution between city (more, cheaper fresh water available), enterprise (profits), farmers (fertilizer cost reduction, productivity increase), associated industry (higher productivity from associated farms, as they have an interest in crops for processing/sales). Crucial factors: availability of crop-buying industry and preferably processing industry concerning lower health risks of this; agreement for extraction of equal amounts of fresh water by enterprise for wastewater reused.Santacruz (bolivia – wastewater to carbon credits)Internalization of indirect value (Reduction of pollution of water bodies; reduction of odors; unavailable sanitation solutions for parts of the city) by means of interest of a city authority.Translation of indirect value through formation of a partnership between WWTP operator and a sanitation services provider, which enables valuing wins from processing wastewater gasses into CO2 (flaring captured biogas) or into electricity (converting captured biogas), and converting direct value potential (carbon credits) into improved sanitation services.Benefits distributed between WWTP operator (profits), Sanitation services provider (profits) and city (lowered bills and improved sanitation situation).Direct value in the form of profit outlook, translated from internalized indirect value, also enables infrastructure investment into the project (biogas capture and flaring/conversion installations) and enables high-value partnership formation with global partner(s) for carbon emission reductions marketing.