Regional-Governance and Knowledge Generation Project (GEF Grant) Integrating Environmental Considerations in Five Priority Sectors in Egypt Water, Energy, Agriculture, Biodiversity, Human Settlements, and Solid Waste January 2016 ! ! Integrating Environmental Considerations in Five Priority Sectors in Egypt1 Water, Energy, Agriculture, Biodiversity, Human Settlements, and Solid Waste 1. Lead Author: Hussein M. Abaza, Senior Advisor to the Egyptian Minister of Environment, Former Director, Economics and Trade Branch, United Nations Environment Programme (UNEP) Table of Contents Introduction………………………………………………………………….......................................3 Framework for Integrating Environmental Considerations in the Water Sector............................25 Framework for Integrating Environmental Considerations in the Energy Sector..........................52 Framework for integrating Environmental Considerations in the Agriculture Sector……………91 Sound Management of Biodiversity for Sustainable Development………….……………………123 Integrated Human Settlements……..……………………………………………………………...151 Framework for Integrated Solid Waste Management………………………………………….…189 References………………………………………………………………………………………….220 2 Integrating Environmental Considerations in Five Priority Sectors in Egypt Introduction 3 Table of Contents Acronyms…...…………………………………………………………………………………………………...5 Introduction…………………………………………………………………………………………………......6 Objectives of the document………………………………………………………………………………….….6 International agenda……………………………………………………………………………………….…..8 The EU Sustainable Development Strategy…………………………………………………………….……...9 Experience of selected OECD Countries in SDSs……………………………………………………………10 Germany……………………………………………………………………………………………………….10 Norway………………………………………………………………………………………….……………...10 Denmark………………………………………………………………………………………………………………………………………….11+ Experience of selected Non-OECD Countries in SDSs…………………………………………………...….11 South Africa………………………………………………………………………………………………...…11 Costa Rica………………………………………………………………………………………..…..12 South Korea……………………………………………………………………………………….…12 Environmental Challenges facing Egypt………………...…………………………………………….....…..13 Three Scenarios for Climate Change…………………………………………………………………………15 Strategic directions…………………………………………………………………………………………….16 Green Economy………………………………………………………………………………………………..17 Enabling Conditions………………………………………………………………………………………..…17 A strong governance system……………………………………………………………………………….…..17 Inter-Ministerial Coordination……………………………………………………………………………..…17 Integrated policymaking……………………………………………………………………………………....18 Regulatory Framework…………………………………………………………………………………….….18 Market Based incentives………………………………………………………………………………………19 Human Resource Development……………………………………………………………………………….19 Trade Policy…………………………………………………………………………………………………....19 Research & Development……………………………………………………………………………………...20 Access to Finance and facilitating investment…………………………………………………………….….20 Green Public Procurement……………………………………………………………………………………20 Public Awareness and Information Dissemination………………………………………………………..…21 Sustainable Development Indicators……………………………………………………………………….…21 Monitoring and Evaluation………………………………………………………………………………...…21 + 4 Acronyms AFD Agence Francaise de Développement CCRMO Climate Change Risk Management Programme ! DEAT Department of Environmental Affairs and Tourism EEAA Egyptian Environmental Affairs Agency ESI Environmental Sustainability Index EU European Union FfD Financing for Development GDP Gross Domestic Product GEF Global Environment Facility HCSD! ! ! High!Council!for!Sustainable!Development!! HFCs Hydrofluorocarbons IA Integrated Assessment JPOI Johannesburg Plan of Implementation LA21 Local Agenda 21 MDGs Millennium Development Goals MEE Ministry of Environment and Energy MIDEPLAN Ministry of Planning and Economic Policy NALRA National Association of Local and Regional Authorities NCSD National Council for Sustainable Development NDP National Development Plan NEAPs National Environmental Action Plans NFSD National Framework for Sustainable Development NSDS National Sustainable Development Strategies NSSD National Strategy for Sustainable Development Strategy OECD Organization for Economic Cooperation and Development PES Payment for Ecosystem Services PCSD Presidential Commission on Sustainable Development SA Sustainability Assessment SD Sustainable Development SDS Sustainable Development Strategy SEA Strategic Environmental Assessment SNA! ! ! System!of!national!account! UNEP United Nations Environment Programme UNFCCC! ! United!Nations!Framework!Convention!for!Climate!Change!! UNIDO!! ! Industrial Development Organization 5 Introduction approach to be adopted in the design and It has become increasingly recognized that formulation of policies, plans and programmes in environmental strategies and action plans prepared Egypt. Relevant stakeholders should participate in in isolation from mainstream macroeconomic and the process and throughout the policy cycle in sectoral policies have not yielded the expected order to ensure that concerns and priorities of results. The outcome has been giving economic different stakeholders and segments of the considerations and priorities precedence over population are taken into account. Public economic and social considerations. Moreover, in participation reduces any potential resentment to many instances policies, plans and programmes the proposed policy, plan, or programme, and have resulted in negative impacts on the increases the likelihood of their successful environment and society. implementation. Raising awareness of the Conventional policymaking processes has importance of integrating sustainability therefore not yielded the desired outcome of considerations in the decision making process is achieving sustainable development and human also an important component of an effective welfare. Developing policies, plans and integrated policymaking process. It is therefore programmes that do not consider environmental essential to establish modalities for continuously considerations at its core has proved their communicating the outcome of the different stages deficiencies. Considering environmental aspects as involved in the policy formulation process. an isolated exercise or after a policy, plan, Monitoring the implementation of proposed policy, programme, or project has been developed has plan, and programme should also be an integral proven to be ineffective. Environmental as well as part of the process. This should be followed by an social considerations should be considered assessment of the outcome of implementation of alongside economic considerations in the planning the selected policy, plan, or programme, and the and decision making process of macroeconomic drawing of lessons gained through the policy and sectoral policies. The recognition of this formulation and implementation process to be imperative, particularly in the last decade has taken into account in subsequent planning resulted in the immergence of new approaches and processes. tools designed to achieve this objective. These Objectives of the document included strategic environmental assessment This document is intended to provide a framework (SEA), sustainability assessment (SA), and for integrating environmental considerations in integrated assessment (IA). Though the advocates five key sectors: Water, Agriculture, Energy, of these tools may lay emphasis on certain aspects Human Settlements, and Solid Waste. over the other, they all aim more or less in achieving the same main objective, which is The main criteria for the selection of the sectors mainly to ensure that proposed policies, plans and identified for this study (Water, Agriculture, programmes do not result in environmental and Energy, Municipal Solid Waste, and Human ecosystem damage. Settlements) are the importance of these sectors for Egypt and the priority given by the In order to ensure the integration of the three Government to them. Water, energy and food sustainability dimensions in the policy and security are of primary concern. Egypt is now decision-making process, the benefits on the considered to be a water scarce country, with economic, social and environmental fronts and the about 80% of its water supply directed towards the inter linkages between the three dimensions should agriculture sector. Energy security is another be clearly identified and brought to the attention of challenge due to shortages in fuel supply needed to policy and decision makers and practitioners. generate electricity required to support municipal In order to achieve this end a number of measures and economic activities. Food supply is another need to be introduce. There is a need to challenge given increased demand due to the rate institutionalize integrated policymaking as an ! ! of population growth and increased food prices. Annex I provides an account of strategies Solid waste has been and continues to be of developed for the five priority sectors subject of concern to the Government, and is yet to be this study. addressed effectively. Housing and new Main key considerations to be taken into account communities is another challenging sector in in the design of overall policies, sectoral and Egypt. This is represented in the need to satisfy regional policies as well as plans and programmes increasing demand for housing units, particularly is how integrating environmental considerations for low-income and poor families and the pressure can complement and support economic and social this creates on available