WFD & Economics. 10 years of water economics. water.europa.eu. Maria Brättemark WFD Team, DG ENV.D.1, European Commission

Transcription

1 WFD & Economics 10 years of water economics Maria Brättemark WFD Team, DG ENV.D.1, European Commission water.europa.eu

2 This presentation 10 years of WFD economics 2010 status and next step Key issues and experience from WFD (& MSFD) Preliminary conclusions for the Floods Directives - water.europa.eu

3 10 years of WFD economics The Directive requirements Article 2(38) : Definitions water services Article 2(39) : Definitions water use Article 4 : Disproportionate costs justifying exemptions. Heavily modified/artificial water bodies Article 5 /Annex III : Economic analysis of water use Article 9/ /Annex III : Cost recovery of water services. Water pricing policies by 2010 ensuring : incentive pricing for sustainable water use recovery of costs, including environmental and resource costs Article 11 /Annex III : Cost-effectiveness. A ost-effective set of measures. Statement : Commission to issue a report on Cost and benefits

4 10 years of WFD economics Common Implementation Strategy (etc) Guidance document N 1 Water and economics Drafting group documents : further defining article 9 Training material Some work on Cost-effectiveness analysis policy summary Guidance N 20 Environmental objectives and exemptions work on disproportionate costs Other work : CBA study Commission RTD : AQUAMONEY

5 10 years of WFD economics The Directive requirements No mentioning of cost-benefit analysis Cost-benefit analysis used to put disproportionate costs in justifying exemptions. Some Member States attempted to calculate overall benefits of achieving good status, or overall costs and benefits of proposed programme of measures, with different scenarios Some prepared different optional programmes of measures, balancing costs and benefits. The different references in the Directive interlinked...

6 2010 status and next step RBMPs delivered by 16 Member States : Compliance checking - Assessment will start shortly, includes screening and in-depth assessments of economic aspects (+ FRM where included) -1 st Feedback from Commission rd implementation report end Synthesis of costs will be made - RBMP available via CIRCA Water services disagreement on definition Moment of reflection on the way forward 2 nd RBMP

7 WFD CIS ad hoc activity on economics issues As part of the preparation for Oct 2010 WFD CIS workshop a questionnaire and follow up interviews have been undertaken to gather views regarding implementation experience of economic aspects of WFD Relevant findings : (i) Most challenging areas CEA of measures, justification of disproportionate expenses (ii) Most work done by multidisciplinary teams at local level, non-economists undertook the economic assessments (iii) Almost 50% of replies stated that lack of integration of economic analysis into political and technical decisionmaking was problematic

8 Key issues Cost effectiveness analysis Extensive experience. Costs less problematic than effects. Differences on timing, level of detail, scale, stakeholder involvement, level of ambition Often single measure approach instead of combinations due to the methodological challenges (different scale of measures, synergies between measures) Cost Benefit Assessment Benefit assessment challenging, including benefit transfer Overall benefit of achieving Good status vs. Benefits specific measures Cost recovery for traditional water services Water services - definition (Water supply & Waste Water services) Financial, operational, administrative investment costs fairly straight forward Environment and resource costs lack of methodology and data Incentive pricing pollueor pays principle

9 WFD & Economics workshop Key outcomes (1/2) Conclusions Variety of implementation challenges identified Topics for future work, different focus in different MS: Related "direct" implementation (Art. 9 etc.) "looking ahead" linking to policy decisions and problem solving/ integration with other polices / directives Research issues identified For some topics, both research and non-research policy work identified (e.g. Ecosystem services; CEA, institutional issues) 9

10 WFD & Economics workshop Key outcomes (2/2) Options identified for EU-level future work Some form of experience exchange welcomed by almost all (series of workshops, setting up a network of experts for exchange etc.) "Clarification of implementation issues up to now": definitions etc. Answering specific questions (as far as possible) for second cycle: identification of specific question and developing common answer Limited support for new guidance Points to consider: Depending of the question: integrating other policies (and their experts), e.g. floods D. integrating non-economists 10

11 Some reflections from WFD (& MSFD) 1/2 Need to ensure the relevant lessons learned from WFD Start on time and keep it simple; already then it will be difficult enough Only do what is really required; no analyses that are only nice to do or scientifically interesting; focus on decision-makers (e.g. national parliament) needs What was good enough for the WFD, will probably also be good enough for (MS)FD. Use what has been reported there as starting point. Develop a database with uniform identified data on costs and effects of measures

12 Some reflections from WFD (& MSFD) 2/2 Determine as soon as possible which role the cost benefit analysis should play in the policy process and which type of information the cost benefit analysis should deliver Leave decisions on what disproportionate costs are to policy makers, but try to find out what economic information they might need. Understand the constraint imposed on the economic analysis by the lack of relevant scientific (or other) information. Need to adjust ambition for economic analysis accordingly (general) the need to integrate the economic analysis into the other work streams and consequently in decisionmaking.(general)

13 Upcoming issues & challenges Ecosystems services role for WFD implementation Water-accounting role for WFD implementation Integration water economics with other related themes and profession Upstream-downstream issues (some mentioned) Refine methodologies CEA, CBA.. Environmental and resource costs Taking market based instruments further Towards 2 nd RBMP... *personal reflections

14 Preliminary conclusions for the Floods Directive Link to WFD 2 nd RBMPs preparation including stakeholder involvement Make sure WFD implementation has correct flood related information Use data from WFD where relevant and available Maximise synergies with multi-purpose measures with multiple benefits green infrastructure! Make the best of information exchange and good practices from other countries 14