The document summarizes recommendations from a consultation process on enhancing Ontario's water sector. It recommends that Ontario (1) establish a bold vision to be a global water leader by 2015, (2) create a Water Opportunity Act to promote sustainable water management and commercialization of technologies, and (3) increase collaboration between government, industry and non-profits to align programs and market-driven research. Implementing these recommendations could create water technology companies, jobs, investment, and reduce water usage.

1. Water Innovation Across Canada
The Canadian Water Summit
John Neate, Senior Associate, OCETA
June 17, 2010

2. Process and Methodology
 Partnership with three Ontario government ministries
 Environment, Research and Innovation, Economic
Development and Trade
 More than 100 individuals consulted
 Surveys, focus groups and personal interviews
 Range of water ecosystem stakeholders:
 Researchers, water technology and product developers,
facility owners and operators, investors and financial
institutions, consulting firms, non-government organizations
 Review of market strategies of leading water jurisdictions
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3. Global Water Opportunity
Water industry expected to reach nearly $1 trillion by 2020:
$1,200
XPV's current areas of
focus fall in the developing
$1,000
segments
$97
$800
$600
$11.8
$400 $864
Developing segments: 16.2% CAGR
$510
$200 Mature segments: 3.8% CAGR
$-
2007 2020
Mature segment Developing segment
Source: LUX Research, XPV Capital
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4. Review of Leading Water Jurisdictions
 Focus on Germany, Israel and Singapore
 Identified common set of best practices:
 Establish a bold vision
 Solve domestic needs with export potential
 Set measurable goals and targets
 Build on existing strengths
 Make strategic investments
 Create an international brand
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5. Ontario Water Strengths
 Largest market in Canada and  Policy leadership on
situated close to the US regulations, standards, source
water protection, watershed
 Proven track record creating
management and water
world-class water technologies
efficiency
and companies
 Shared responsibility for Great
 Leading water organizations
Lakes sustainability
and research institutes located
in Ontario  Significant investment in
infrastructure
 Access to venture capital
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6. Recommendation 1
Establish a Bold Vision
By the year 2015, Ontario is recognized as a global leader and
centre of expertise for providing safe, clean, affordable and
sustainable water solutions
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7. Recommendation 2
Create an Ontario Water Opportunity Act
 Main Objectives:
 Promote sustainable water resources management
– Positive and practical water behaviour change
 Introduce transparent costing and accounting of water use
– Quantify the value of water
 Test and demonstrate water technologies and solutions
– Address risk, market barriers and opportunity cost
 Attract early stage, innovative water technology companies
to Ontario
– Enhance Ontario’s water innovation cluster
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8. Recommendation 3
Increase Alignment and Collaboration
 Ontario government
 Align programs, policies and objectives
 Innovation, job creation and economic development
 Industry and research organizations
 Increase market-driven water research
 Non-governmental organizations
 Coordinate policy research and project initiatives
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9. Recommendation 4
Brand Ontario as a Global Water Leader
 Develop and market Ontario as a leader in sustainable water
 Within Ontario
 Change water attitudes and behaviour
 Create public support and political will
 Outside Ontario
 Recognized as “commercialization hub” for water technologies
 Proactively promote Ontario water technology solutions in US
and select global markets
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10. Outcomes and Benefits
 Creation of world-class Ontario water technology and
service companies
 Increased job creation and economic development
 Attraction of significant private sector investment
 Effective mobilization of Ontario’s assets as a testing and
demonstration platform
 Significant reductions in water use and energy consumption
Wealth creation AND environmental sustainability
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11. Current Status
 Water Opportunities and Water Conservation Act
 Introduced on May 18, 2010
 1st reading in the legislature
 Three main objectives:
1. Make Ontario a North American leader
– Water technologies and solutions
– Water Technology Acceleration Project (WaterTAP)
2. Improve municipal water infrastructure
– System optimization and conservation
– Demonstrate new technologies/services
3. Use water more efficiently
– Residential focus
– Standards, labeling, smart metering/billing
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12. Contact Information
Kevin Jones David Henderson
President and CEO Managing Director
OCETA XPV Capital Corporation
2070 Hadwen Road, Unit 201A 100 Adelaide Street West
Mississauga, ON L5K 2C9 Toronto, Ontario M5H 1S3
905-822-4133, ext. 232 416-864-0475, ext. 301
kjones@oceta.on.ca david.henderson@xpvcapital.com
www.oceta.on.ca www.xpvcapital.com
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