sustainable infrastructure - from...sustainable infrastructure - from business case to investment...

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Sustainable Infrastructure - From

Business Case to Investment

Martin Janowitz Vice President Sustainable Development

Stantec

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Innovation Resilience Sustainability

Investing in better cities

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“In a world of change, the learners shall inherit the earth, while the learned shall find themselves perfectly suited for a world that no longer exists.” ― Eric Hoffer

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The challenge of community and infrastructure planning is not new

Early paved streets & canals in Ur, Mesopotamia 2000 B.C.E

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obsolescence, inefficiency, disconnection, isolation

In the face of increased demand, rising costs, competition for financing, climate change

How big is the problem?

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U.S.A. - 2013 ASCE report card: “D+”

- 15 of 16 categories rate worse than a “B-” - $3.6 trillion gap getting to a “B” - $1.6 trillion remains unfunded

Canada - $123 billion estimated cost to renew municipal infrastructure (Federation of Canadian Municipalities 2007)

This translates into Risk...

83%

85%

89% 93%

74% 81%

86%

52%

82% 32%

Source: World Bank

Just as urban populations are exploding

83%

85%

89% 93%

74% 81%

86%

52%

82% 32%

Source: World Bank

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Some indicators of risk

370 billion Economic losses in 2011, $196 billion in 2012 caused by natural catastrophes -Swiss Re Insurance

~65 million Expected additional population in USA/CAN by 2050; adding further strain on existing infrastructure

7 billion gallons The amount of potable water lost annually due to leaking pipes in the United States

$2 billion Rain-induced flooding loss in Alberta, Canada – June ‘Canada’s costliest natural disaster’ – IBC

Traditional solutions and funding – not up to the Job

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Lack of Systemic View Traditional Funding and Procurement Models – the

„front end capital cost fixation‟ Is there a Value for Money Business Case? Rarely Tyranny of politics and persuasion A New and Highly Competitive Environment

- For Merit or Impact Capital – Too Little Money - Too Many Needs, Too Many Choices

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The challenge is not just the pieces – it‟s systemic a history of single isolated projects Owners specify it Consultants design it Contractors build it

one by one, typically lowest front end cost

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and often at odds with the environment…

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What if we thought about design and planning “organismic-ly”? ecologically?

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Today’s big questions…

What is the RIGHT PROJECT ?

How do we do the PROJECT RIGHT ?

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What would doing it right look like? durable and efficient long-term view, lifecycle costing aligned with nature maximum benefit attracting intelligent capital triple bottom line, sustainable ROI integrated systems, planning and development civil/social infrastructure intertwined consideration of regional/broader Implications stakeholders engaged

INNOVATIVE and RESILIENT

Two Mile Branch Watershed Management Plan Valdosta GA

There are many small and large examples

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Sustainable design-planning evolution

Buildings

Infrastructure

City scale (the next frontier)

Multiple Rating Systems Building Scale (eg. LEED)

Infrastructure Project Scale (eg. ISI Envision)

THE ENVISION FRAMEWORK ™

From sustainable projects to systems…

From sustainable design of individual infrastructure projects

To planning guidelines that will guide high-level, city/regional scale planning of extended infrastructure systems.

Recognizing infrastructure synergies INFRASTRUCTURE

Integrated infrastructure strengthens resilience

EXTREME CLIMATE EVENT

SYSTEMS’ FUNCTIONING

SYSTEM FAILURE

TIME

PERIOD OF SYSTEM RECOVERY

EXTREME CLIMATE EVENT

SYSTEM FAILURE

TIMETIME

Integrated systems can support and buffer each other

INTEGRATED INFRASTRUCTURE

CITY’S RESILIENCE – CAPACITY FOR FAST RECOVERY and ADAPTATION

The sweet spot – integration between….

Infrastructure systems

Natural systems

Stakeholder efforts and objectives

water infrastructure management

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watershed protection

STAKEHOLDERS

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sustainable business case analytics – making the case evaluating SROI to assess risk adjusted value comparing disparate projects. vetting /funding based on transparent analysis understand and articulate full value and risk regional project bundling cost/benefit trade-offs of sustainability linking social and environmental impact filling a role formerly played exclusively by public

funding sources an advantage for merit funding and impact capital Transforming project development

Matching funding demand to capital opportunities

Aligning community interests Addressing data needs merit funding Tapping private Impact capital Making the case for value and risk

So…? Will the EAP sector shape the future?

Or will we be shaped by it?

Thank You

Sustainable Infrastructure - From

Business Case to Investment

Martin Janowitz Vice President Sustainable Development

marty.janowitz@stantec.com 902.468.0406

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