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MEDIA RELEASE

11 June 2019

National return of A$30 billion to flow from water-recycling strategies


MELBOURNE: 

A new environmental economics report has identified that much of the 1300 gigalitres (GL) of waste-water from coastal outfalls around Australia could be readily recycled – delivering a return to the nation of about A$30 billion to the nation.

The 1300GL – equivalent to about two-and-a-half times the volume of water in Sydney Harbour – where 63 per cent is recycled, would cost A$9 billion using existing water-recycling strategies. The net benefit to the nation would be about A$21 billion. Around the Australian coast there are 176 sites that discharge various forms of treated waste into the oceans.

The report, Coastal Outfall Upgrades in Australia: Benefits, Costs, & Improved Transparency, was commissioned in early 2018 by Victorian-based Clean Ocean Foundation (COF) and is based on data collected by the University of Tasmania for the newly created National Outfall Database (NOD).

The projected savings figures are based on work by leading economist Dr Boyd Blackwell and COF’s CEO Mr John Gemmill using a “benefit transfer method”, and costs based on combining standard modelling using capital expenditure and operational expenditure, with benefits and costs compared using net present value (NPV) analysis.

The NOD was developed in a COF-led project supported by the Australian Government via the National Environmental Science Program (NESP) Marine Biodiversity Hub.

Mr Gemmill believes that the peer-reviewed report is the most-comprehensive assessment of Australia’s coastal outfalls ever undertaken in collaboration with all levels of government, the community and the sector managing waste-water in Australia.

COF President Peter Smith says that by utilising the data and engaging with Dr Blackwell, it’s the optimal time for a “new way forward” for water supply and waste-water management authorities: “The net value to flow to Australia by recycling tertiary grade water – that is, water fit for agricultural, horticultural and industrial uses – can now be established,” Mr Smith says.

COF also says the report allows for the breakdown of the benefits that could be achieved on a State-by-State basis and identifies coastal outfalls of significant value with respect to savings from these outfalls if they are upgraded to recycling standards similar to those from existing water treatment plants.

A critical element of the analysis is the transfer of ‘willingness to pay’ or dollar measures from a ‘choice experiment’ conducted in Sydney for wastewater recycling. The experiment, similar to choices made across competing products at a supermarket, and value-transfer technique (transferring benefit measures from one case to a similar case with suitable adjustments) are commonly used by economists to allocate a monetary value to a process or proposal.


The report makes a series of recommendations including:

• the establishment of national reporting standards for wastewater treatment;

• ensuring the national outfall database continues to provide critical data; and

• Federal funding be made available to assist with the upgrading of suitable pilot sites.

COF says this readily could include water-treatment plants related to coastal outfalls at Warrnambool in Victoria and Merimbula and Malabar in New South Wales where upgrades are urgently required for reasons of water security and ocean pollution.

COF’s Mr Smith says that Australia’s key decision makers now more than before have a “golden opportunity” to adopt a sea change in the water-reform process around coastal Australia based on good science and economic analysis.

“We are the driest settled continent in the world in the midst of a severe drought,” Mr Smith says. “The science and analysis can and – political willpower and common-sense forthcoming – will provide more water for our dry lands, reduce the impact of wastewater on our fragile marine environments, and save the nation money at the same time.”

“We need to understand that with growing population pressures, ageing infrastructure, concerns about emerging contaminants in waste-water streams – in particular micro plastics, heavy metals and pharmaceuticals – and also the impact of climate change, further massive expenditure of infrastructure related to waste-water treatment is inevitable.”

“What our research reveals is that transparency driven by an informed community group can enable all players to better understand outfalls and the issues around water recycling,” he says. “And this, in turn, provides an opportunity for us to achieve a more sustainable water future that benefits the marine environment as well.”

ENDS

To access the Coastal Outfall Upgrades in Australia report visit:

https://www.cleanocean.org/2019-upgrading-australias-outfalls.html


COF contact

John Gemmill, Project Manager, National Outfall Database

E: [email protected]

M: 0409 425-133

Economics contact

Dr Boyd Blackwell

E: [email protected]


About Clean Ocean Foundation

COF was established on the Mornington Peninsula in 2000 with a central focus on decreasing waste-water coastal outflows and increasing waste-water treatment standards and recycling volume.

In 2012 after almost two decades of work COF’s campaign to obtain a clean-water outfall for Melbourne’s major sewage treatment plant was realised with the commissioning of a $420 million upgrade of Melbourne Water’s Eastern Treatment Plant (ETP) at Carrum Downs.

COF was unsuccessful in attempting to stop the controversial A$3.5 billion Victorian Desalination Plant that to date has not been required although costing water-using ratepayers more than A$2 million a day to maintain.

During its lifespan COF has immersed itself in dialogue with coastal communities, academic researchers, public servants and decision makers. Through these exchanges COF is convinced its perspective on water-supply issues, based on enlightened community expectations for the marine environment coupled with transparency, could drive truly sustainable water-management policies in Australia with profound benefits for the future.

https://www.cleanocean.org/

About the National Outfall Database

The NOD aims to provide policy makers with a guide to help prioritise outfall reform and identify public and private sector opportunities for wastewater recycling.

The NOD is developed by Clean Ocean Foundation in collaboration with the States and Northern Territory and supported by the National Environmental Science Program Marine Biodiversity Hub.

https://www.nespmarine.edu.au/project/project-c4-national-outfall-database

About the National Environmental Science Program

The NESP is a long-term commitment by the Australian Government to environment and climate research. NESP projects deliver collaborative, practical and applied research to inform decision making and on-ground action.

https://www.environment.gov.au/science/nesp