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After decades of regulation and investment to reduce point source water pollution, OECD countries still face water quality challenges (e.g. eutrophication) from diffuse agricultural and urban sources of pollution, that is disperse pollution from surface runoff, soil filtration and atmospheric deposition. The relative lack of progress reflects the complexities of controlling multiple pollutants from multiple sources, their high spatial and temporal variability, associated transactions costs, and limited political acceptability of regulatory measures. This report outlines the water quality challenges facing OECD countries today, presents a range of policy instruments and innovative case studies of diffuse pollution control, and concludes with an integrated policy framework to tackle diffuse water pollution. An optimal approach will likely entail a mix of policy interventions reflecting the basic OECD principles of water quality management – pollution prevention, treatment at source, the polluter pays and beneficiary pays principles, equity, and policy coherence.

This report examines the green growth potential and identifies best practices for policy and governance as well as ways to strengthen current practices. As the third largest city in Vietnam, Hai Phong’s economy is growing remarkably at an average rate of 8.7% (2015) in tandem with the growth of the Hai Phong Port. Economic growth and urbanisation, however, have posed serious environmental challenges, including: increased greenhouse gas emissions from industry and transport; rapid depletion of underground water sources; pollution of water sources from untreated commercial, medical, domestic and agricultural waste water; and inefficient waste management, where less than 10% of domestic waste is composted and recyclable materials are mixed with other waste and landfilled. Furthermore, Hai Phong ranks among the 20 cities most vulnerable to costal flooding due to climate change. Nevertheless, there is much untapped potential for green growth in Viet Nam and Hai Phong city. The ultimate goal is to build a stronger, more resilient and greener city.

The Urban Green Growth in Dynamic Asia project explores how to promote green growth in cities in Asia, examining policies and governance practices that encourage environmental sustainability and competitiveness in a rapidly expanding economy. This synthesis report presents the results of case studies along with practical policy recommendations, reflecting the local contexts of Southeast Asia. While Southeast Asian cities are affected by a range of economic, infrastructure, environmental and social challenges, ongoing rapid development offers opportunities to shift towards greener growth models. The concept of urban green growth can be a powerful vector of sustainable development, by emphasising the existence and potential of co-benefits between economic and environmental performance.