WHITEPAPER ON

Accelerating Climate Initiatives

MAY 2019

| 1 Climate change is one of the largest global challenges that mankind will face in the upcoming century. It demands stewardship from Van Oord in the field of water and energy. Our ambition is to make societies more resilient and sustainable, and create a better for future generations. Sustainability, innovation, and collaboration are key to developing successful solutions to fulfill this ambition. That is why we have launched our game-changing S.E.A. programme.

Our S.E.A. programme consists of three mutually reinforcing themes: Accelerating climate initiatives, Enhancing the energy transition and Empowering nature and communities. In this white paper, we focus on the theme Accelerating climate initiatives. We highlight the scale and scope of the climate challenges we are facing and we propose ways of meeting these challenges using adaptation measures. We advocate making use of integrated solutions based on design, build, finance and maintain. This includes nature- based solutions and accounting for environmental and social impact.

Accelerating Enhancing Empowering climate initiatives the energy transition nature and communities | 2 Accelerating Climate Initiatives

Deltas and coastal areas around are facing the effects of global warming. Such effects include sea level rise, changing weather patterns, extreme weather conditions, soil subsidence and endangered biodiversity. In addition to efforts to prevent further warming (climate mitigation), societies need also to adapt to climate change (climate adaptation). This is particularly for societies with densely populated delta areas, which are also extremely important economic centres that provide jobs, infrastructure and utilities.

For Van Oord, this entails increasingly complex projects that Flooding events 1996-2016 call for an exceptional effort on the part of all concerned. Conventional hydraulic engineering measures such as dyke reinforcement and beach nourishment are still required. Additionally, we call for a more integrated approach based on advanced tailor-made solutions including the option for nature- based solutions. We are rising to the challenge by taking the lead in partnerships that focus on developing such solutions, contributing Source: PBL Environmental Assessment Agency to a better world for future generations.

Van pushed through water in Jakarta, Cynthia Boll | 3 Sinking cities will be a common phenomenon

Zooming in on the effects of heavy rainfall in the monsoon greatest relevance to a marine season and increasing contractor – sea level rise and urbanisation in Jakarta. hydrological events (floods) – coastal urban deltas and low- The Indonesian city is also one lying island states are most of the fastest sinking cities in vulnerable to climate change. the world. If subsidence continues at this speed, parts of The emerging economies of the city could become entirely are expected to bear the largest submerged. The Indonesian burden related to sea level rise, government has introduced the but other regions, for example Jakarta National Capital the South Pacific Islands, West Integrated Coastal Development , Western , and the (NCICD) plan, aimed at Southeast Coast of the USA, are guaranteeing the safety of also expected to be affected millions of Jakartans during significantly by sea level rise. floods and at expanding the city’s comfortable living and The implementation of effective working environment more to 1 billion people live in flood-prone coastal and river defences is the north. Van Oord has been areas today thus crucial for the protection of tackling marine challenges in a significant share of our global Indonesia for more than a population. century. Our presence in the 1.7 billion region will be even more people live in flood-prone Climate change is aggravating valuable due to the recent areas by 2050 the problems of soil subsidence, impact of climate change.

Resident of Jakarta (Indonesia) Ibu Sarmini with her feet in the water Cynthia Boll | 4 OUR AMBITION To provide integrated and innovative marine solutions

We want to be known for providing integrated and innovative marine solutions for coastal areas and river deltas at risk. We aim to do this by being a global leader and partner in facing the challenges of climate adaptation and by simultaneously contributing to the United Nations Sustainable Development Goals.

United Nations Van Oord 2025: Sustainable We will contribute to Development projects intended to protect Goal 13: Climate Action the most vulnerable deltas Take urgent action to in the world. combat climate change and its impacts

In cooperation with its partners, Van Oord will actively participate in the global network for climate adaptation by demonstrating and delivering marine engineering and other expertise and by providing coastal and flood protection solutions.

River flood defence project in Borgharen, The Netherlands | 5 The challenges we are facing …

Global warming, sea level rise & extreme weather events. It’s time to act now!

CO2 emission is a major cause Staying within a remaining 2015 Paris Climate Agreement: To comply with the Paris

of global warming. carbon budget of 580 GtCO2 limit global warming Climate Agreement, renewable

implies that CO2 emissions reach well below energy would need to supply carbon neutrality 2.0°C 70% -85% in about 30 years. while aiming for of electricity by 2050 (25% today). C (IPCC, 2018) 1.5°

A global temperature rise of A global temperature rise of Extreme weather For the goals under the Paris 1.5°C by 2100 means sea levels 1.5°C also means coral reefs will events affecting Climate Agreement to remain will rise by decline by attainable, rapid global change

% % is needed. 40 cm 70 -90 35 mln people per annum

(IPCC, 2018) (IPCC, 2018) | 6 TRACK RECORD Van Oords Track Record Van Oord’s Track Record Projects related to Accelerating climate initiatives

Projects related to Accelerating climate initiatives

NETHERLANDS

Reinforcement of the Afsluitdijk Hondsbossche en Pettemer Sea defence Beach Sand Motor replenishment (Cuba) Saly Coastal protection Climate (Senegal) adaptation Coral and urban rehabilitation development at the Great in Jakarta Barrier Reef (Indonesia) ()

Container terminal Moin (Costa Rica)

Maintenance Land dredging of reclamation the port of in Mal Santos (Maldives) ()

| 7 Our market & approach

Historically, coastal works account for a market share of roughly 5% to 10% of total annual dredging market revenue or roughly €500 million to €1 billion per annum (EUDA, 2017).

Rising sea levels in the medium to long term, and extreme wet weather events in the near future, will drive the demand for future- proof infrastructure and coastal and flood protection measures.

Van Oord has contributed to coastal and flood protection measures throughout her more than 150 years of existence. We have a solid track record in that regard.

Additionally, in the past two decades Van Oord has devoted itself to developing and building offshore wind farms, thereby leveraging its climate mitigation activities. Van Oord plays a leading role in the Dutch offshore wind industry and as a result has had a hand in all Dutch offshore wind farms constructed so far.

Opportunities for marine contractors also increasingly lie in early contractor involvement. Moving from a reactive to a more proactive market approach means focusing on energy management and the United Nations Sustainable Development Goals. Linking adaptation and mitigation efforts in a powerful combination.

Creating more land in the Maldives | 8 WHAT WE OFFER Integrated solutions

Our frontrunner’s position in marine construction puts Van Oord in a position to take action. By investing in skills and developing projects, funding, innovative solutions and partnerships we want to protect vulnerable regions and make them climate resilient. Van Oord doesn’t wait passively, but we pro-actively engage and anticipate.

Van Oord always takes responsibility and prefers to get involved at an early stage based on our capabilities in the field of design, construction, maintenance, finance, sustainability, environmental engineering and stakeholder engagement. We acknowledge that our responsibility also includes dealing with the potential scarcity of resources required for climate adaptation measures.

In return, we offer 150 years of expertise and access to our global network of partnerships with clients, subcontractors, research institutes, engineering firms and NGOs.

In the Bahamas Van Oord’s environmental specialist are collecting coral fragments for propagation in the | Coral9 Engine. CASE Reinforcement of the Afsluitdijk: an example of Dutch marine engineering.

The Afsluitdijk has been a proud example of Dutch marine engineering for many decades. The 32-kilometre-long dam has protected large areas of the Netherlands against flooding from the Wadden Sea and Lake Ijsselmeer since 1932. After more than 85 years, the dyke is in need of an upgrade. The reinforcement project will combine various objectives and uses. Reinforced hydraulic structures and two new high-water protection locks will defend the hinterland from flooding. The dyke’s geographical location and situation will be exploited to support the use of innovative technology and renewable energy. Following completion, the Netherlands will again have an iconic work that symbolises the innovative nature of Dutch marine engineering.

This iconic project is unique in that it contributes to all of the SDGs to which Van Oord has committed itself. Over the next few years, several innovative features will be introduced to ensure that the energy neutral Afsluitdijk ensures increased traffic safety and can continue to resist the power of the water until at least 2050.

Levvel will be designing, constructing and financing the reinforcement of the Afsluitdijk and maintaining it for a period of 25 years. Levvel is a consortium consisting of Van Oord, BAM, Rebel.

| 10 CASE SDG 7 Affordable and clean energy All energy will be compensated by 2.7 hectares of solar panels The Afsluitdijk – near Den Oever. Knowledge and experience will be gained in large-scale application of solar panels. an icon of innovation SDG 8 Decent work and economic growth During the peak period, about 800 people will be working on and around the Afsluitdijk. Some 100 jobs are intended for people at a distance from the labour market. “ Compared to alternative revetment, SDG 9 Industry Innovation and infrastructure the innovative Levvel-blocs mean a 35% saving On the Wadden Sea side, the dyke will be raised using innovative on concrete (approx. 200,000 m3). concrete elements developed especially for the Afsluitdijk, the Levvel-blocs. This is 40,000 tonnes less CO2 , a reduction of no less than 56%. SDG 11 Sustainable cities and communities After the reinforcement project is completed, the Netherlands will be even better protected against the rising sea level.

SDG 13 Climate action On the Wadden Sea side, the dyke will be raised and reinforced by The dyke reinforcement project will make the Netherlands climate- means of a new revetment. We will be using Levvel-blocs on most proof. The dyke must be able to withstand the type of major storm of the lower slope. Levvel-blocs, another name for the innovative that occurs once every ten thousand years. XblocPlus blocs, are concrete armour units developed especially for the Afsluitdijk. At least 100 blocks a day will be produced in SDG 14 Life below water Harlingen by means of a fully automated process and transported A fish migration river is being constructed to restore the over water to the dyke. A crane barge will then be used to position connection between the Wadden Sea and Lake IJsselmeer for fish. Levvel is responsible for the opening in the Afsluitdijk to support the blocks, a total of approximately 75,000. fish migration.

SDG 17 Partnership for the goals Levvel will be designing, constructing and financing the reinforcement of the Afsluitdijk. The consortium partners will also be responsible for the maintenance during 25 years. https://www.vanoord.com/sustainability/climate/afsluitdijk-icon-innovation

| 11 Costs & funding

Reducing, or preferably preventing, loss and damage requires the Gap between Estimated Adaption Needs & Available Public Finance* implementation of far-reaching climate mitigation and adaptation measures. (2013-2050, “Wet Scenario”, World bank) Climate mitigation measures aim to permanently eliminate or reduce the 90 long-term risk and hazards of climate change to human life and property, and are mostly efforts to reduce emissions and extract greenhouse gases an additional 64 billion from the atmosphere (IPCC). 60 needed by 2050

Climate adaptation refers to the ability of a system to adjust to climate 30 change, to moderate potential damage, to take advantage of opportunities, or to cope with the consequences (IPCC). US$ 21 bn US$ 85 bn

0 Where mitigation measures, and most prominently renewable energy, have Public Sector Finance in 2016 Annual Costs of Adaptation by 2050 become increasingly more commercially viable driven by cost efficiencies, *Source: World Bank, World Energy Council, Climate Policy Initiative’s Global Landscape of Climate Finance 2017 economies of scale, innovation and societal demand, climate adaptation In short, a huge amount of adaptation funding is required annually to be able measures remain a cost factor with little economic imperative. to cope with the effects of climate change – and that is assuming that global temperatures will rise by ‘only’ 2°C. As a result, the financing of climate adaptation projects remains mostly a matter for the public domain, and they are generally funded by local Despite the growing contribution of multilateral and bilateral development governments, through bilateral development aid, or through loans and funds (WB, ADB, EIB) and an increase in emerging market-led funds and grants obtained from multilateral development banks. institutions (GCF), the main hurdle is and is expected to remain the mobilisation of private funding. Estimates from the World Bank (2010) indicate that the costs of adapting to a global temperature rise of 2°C degrees would result in an annual price The rising sense of urgency, the exposure of economic assets and the focus on tag ranging from US$ 70 billion to US$ 100 billion up to 2050, of which sustainable finance coupled with the growing availability of public finance can an estimated annual US$ 28-29 billion will be required for coastal zones, an be expected to drive the growth of blended finance. This ensures de-risking amount in the range of US$ 13-28 billion towards infrastructure, and a figure and benefits spread across different sectors. So, joint efforts are required to ranging from US$ 14-20 billion for water supply and flood protection. accelerate climate initiatives.

| 12 Accelerating climate initiatives

Adaption Mitigation Climate urgency is calling for increasingly extensive adaption and mitigation measures. New businesses are being developed Forest protection Green infra Energy efficiency by Van Oord, the amount of existing climate related activities Land use change Distributed energy Renewable energy are increasing. Meaning broadening activities in both mitigation Infrastructure & Resilient urban Power to heat/H2 and adaption measures. As a result we’ve launched our S.E.A. building design transport Sustainable programme, a platform displaying what we’ve done so far. Flood mitigation Water & energy transportation However we are not there yet. Action and joint efforts are still conservation Emergency response Methane capture and use required to mobilize public and private funding to accelerate Building weatherization climate initiatives. The following five sustainability aspects should Business continuity plans Industrial proces Low-input agriculture improvements be taken into account: financial, institutional, environmental, Community technological and social aspects. engagement CC(U)S

The actions in bold fall within the scope of Van Oord | 13 References

Buchner, K.B., Oliver,P., Wang, X., Carswell, C., Meattle, C., & Mazza, F., (October 2017) World Bank, World Energy Council, Climate Policy Initiative’s Global Landscape of Climate Finance 2017. Consulted on 26 March 2019

https://climatepolicyinitiative.org/wp-content/uploads/2017/10/2017-Global-Landscape-of-Climate-Finance.pdf

EUDA Annual Report 2017, Protectionism An Obstruction to World-Class Added-Value, Consulted on 12 April 2019

https://www.european-dredging.eu/pdf/EuDA_17.pdf

IPCC, (2007) Climate Change 2007, Mitigation of Climate Change. Consulted on 14 January 2019

https://www.ipcc.ch/site/assets/uploads/2018/03/ar4_wg3_full_report-1.pdf

IPCC, (2018, 18 October) , Summary for Policymakers of IPCC Special Report on Global Warming of 1.5°C approved by governments. Consulted on 14 January 2019

https://www.ipcc.ch/2018/10/08/summary-for-policymakers-of-ipcc-special-report-on-global-warming-of-1-5c-approved-by-governments/

PBL Netherlands Environmental Assessment Agency (2018, 01 December) Planetary security: in search of drivers of violence and conflict. Consulted on 6 May 2019

https://www.pbl.nl/sites/default/files/cms/publicaties/Planetary-Security-2018-Part-I.pdf

Hondsbossche and Pettemer Sea Defence project in the Netherlands | 14 Hondsbossche and Pettemer Sea Defence project The Afsluitdijk: An icon of innovation Broomhill Sands Coastal Defence Scheme Creating Stakeholder engagement in the Maldives in the Netherlands

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[email protected] Battle of the Beach a climate change education and awareness initiative for children Woods versus Waves

| 15 Climate Adaptation and Urban Development Construction of the Belgian offshore wind farm Norther The Afsluitdijk: Levvel-blocs Saly Coastal protection in Senegal