Monia Martini Romania Green Economy Projects Manager WWF-Romania Project Steering Committee IV Bucharest, 29 October 2013

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Monia Martini Romania Green Economy Projects Manager WWF-Romania Project Steering Committee IV Bucharest, 29 October 2013

Presentation focus The payment scheme designed for Ciocanesti The phased approach Operational framework Risks and assumptions

Payments for improving the quality of the environment important for birds diversity Goal: To promote a balance between economic and biodiversity needs through aqua-environment payments under the OP Fisheries that support responsible aquaculture practices. Focus: Implementation of practices for the management of vegetation and water in the fish farm basins in order to improve the quality of the environment important for birds.

The approach Phase I 2010-2013 Feasibility studies on hidrology and water quality, water policy, tourism trends and ecotourism development opportunities, valuation of ES, public-funding opportunities. Phase II 2014-2016 Testing of the environmental practices for nature-friendly basins management: Phase III? 2 main conditions will determ the transition to a PES scheme or SFM: Stakeholders engagement: 1. In 2011 SC Calarasi SRL applied to OP Fisheries 2007-2013, Measure 2.1: Aquaculture, Operation 1: Environmental protection à failed because the environmental practices for nature-friendly basins management developed by the Danube PES team and incorporated in the proposal were not approved by an evaluator recognized by the OP Managing Authority (indicators were not considered robust enough). Fundraising for testing the environmental practices for naturefriendly basins management is ongoing. management of water quality management of wetland habitat important for birds Monitoring and evaluation. Development of ecotourism types of infrastructure at farm level in order to enhance identified business development opportunities. werther results of the monitoring and evaluation phase show or not the delivery of water quality and maintenance of biodiversity; werther business development opportunities are able to self-sustain or co-finance the implementation of the environmental practices for nature-friendly basins management.

PHASE I - Feasibility studies Socio-economic analysis What is the problem? 233 ha total farm surface: 30 water basins 20 ha dams and canals 15 ha agriculture land Natura 2000 site = SPA Ciocăneşti Dunăre (ROSPA0021) 904 ha Potential Ramsar site Lower Danube floodplain Local livelihood: Agriculture and aquaculture are the main economic activities Tourism?

Podiceps cristatus Great crested grebe Birds diversity depending on Ciocanesti for food, nesting, and resting. Influenced by climate conditions, and amount of water surface in the basins. 10636 individuals and 100 species observed. Species protected at International - 6, European - 31, and National 18 levels). Recreational value Biodiversity maintenance (birds) Livelihood challenge: To maintain business profitability in conditions of damages from cormorants and other fish eating birds (about 50% of production) so far, nets above some fish basins (20 ha) offer low-impact protection against birds Phalacrocorax pygmeus Pygmy cormorant

Habitat Individuals Species Food

Phenology Individuals Species Nesting

Water monitoring plan: - 9 proof collection points at farm level - analysis done in May, July, October - the 3 points of supply (P1, P2, P3) have the highest concentrations of suspended organic matter, CCO- Cr and nitrates = eutrophication / poor quality water Provisioning of fish Water quality Livelihood challenge: To foster market access for HNV/quality products.

Fisheries policy Based on EFF, the Romanian OP Fisheries 2007-2013 finances the following 3 types of actions targeting the environment : Action 1 - environmental protection; Action 2 - transition to organic aquaculture; Action 3 - sustainable aquaculture in Natura 2000 sites. No clear methodology to access OP Fisheries 2007-2013, Measure 2.1: Aquaculture, Operation 1: Environmental protection. Many fish farms outside Natura 2000 sites are similar to the Ciocanesti case and have demanded similar financial support for maintaining biodiversity values. The estimated number of farms eligible for payments under the proposed scheme amounts to 620 out of the total registered farms, covering a total eligible surface of 80,087 ha (no exact data available to compare fish farm surfaces in and out Natura 2000). Besides, Natura 2000 payments are designed to compensate income losses and not to stimulate sustainable action.

Ecosystems valuation These are the main benefits to human well-being! Poor data approximation and availability Also better solutions provided by education, legislation, and access to market Priority on biodiversity maintenance confirmed Type of ES Group of ES Description Euro (2010) Provisioning Nutrition Fish production 592,000 (3,202 /ha) Regulation and maintenance Maintenance of physical, chemical, biological conditions Carbon sequestration (reed, soil vegetation and trees) 5,856 Carbon storage (trees) 3,550 Biodiverisity maintenance Hunting penalties 19,500 (77 /ha)

The conclusion is that The draining of the Lower Danube floodplain during communism with the purpose to create land for agriculture production has massively reduced wetland type of habitats, which host important biodiversity (birds in particular). Not surprisingly aquaculture fish farms have become a main economic activity in the Lower Danube, and have played a key role so far in preserving important wetland habitats and birds species from total disappearance. However specific human activities are threatening this role. In our study area irresponsible practices e.g. agriculture/aquaculture/industry are directly affecting the quality of the environment important for birds. Rural development policies related to the fisheries sector are fundamental in creating the conditions for balancing economic and nature conservation needs. To mobilize public funds that stimulate the transition towards responsible aquaculture, by supporting basins management practices that improve the quality of the environment important for birds

PHASE II Testing of environmental practices Scenario 1. Minimum impact on water quality and fish production Measures implemented on basin EC2 (not the most affected by nutrients charge) 41 ha and app. 3 ha of reed Action 1. Reduction of fertilizers 10% - 41 ha x 69 Euro/ha = 2829 Euro 20% - 41 ha x 138 Euro/ha = 5658 Euro Action 2. Monitoring of action 1 effects water quality analysis 10 samples x 69 Euro/sample x 2 times/year (spring and autumn before emptying the basins) = 1380 Euro

PHASE II Testing of environmental practices Scenario 1. Minimum impact on water quality and fish production Action 3. Measuring the reed area on basin EC2 40 Euro/trip + 100 Euro (GIS expert) + 55 Euro (ortophotoplans aquiring) = 195 Euro Action 4. Maintaining the area covered by reed app. 3 ha 3 ha x 4719 Euro/ha = 14157 Euro Action 5. Flooding unused basin with water and populating them with noncommercial fish species breeding basins 10 ha x 531 Euro/month/ha x 7 months = 37 170 Euro Action 6. Monitoring the effects of action 5 - bird monitoring 7 trips x 80 Euro/trip (2 days each) + 1600 Euro/specialist = 2160 Euro Total scenario 1: 57691 Euro (with 10% fertilizers reduction) 60320 Euro (with 20% fertilizers reduction)

PHASE II Testing of environmental practices Scenario 2. Maximum impact on water quality and fish production Measures implemented on basin EC1B (affected by nutrients charge) 36 ha and app. 1 ha of reed Action 1. Reduction of fertilizers 10% - 36 ha x 69 Euro/ha = 2484 Euro 20% - 36 ha x 138 Euro/ha = 4968 Euro Action 2. Monitoring of action 1 effects water quality analysis 10 samples x 69 Euro/sample x 2 times/year (spring and autumn before emptying the basins) = 1380 Euro

PHASE II Testing of environmental practices Scenario 2. Maximum impact on water quality and fish production Action 3. Measuring the reed area on basin EC1B 40 Euro/trip + 100 Euro (GIS expert) + 55 Euro (ortophotoplans aquiring) = 195 Euro Action 4. Maintaining the area covered by reed app. 1 ha 1 ha x 4719 Euro/ha = 4719 Euro Action 5. Flooding unused basin with water and populating them with noncommercial fish species breeding basins 10 ha x 531 Euro/month/ha x 7 months = 37170 Euro Action 6. Monitoring the efect of action 5 - bird monitoring 7 trips x 80 Euro/trip (2 days each) + 1600 Euro/specialist = 2160 Euro Total scenario 2: 48472 Euro (with 10% fertilizers reduction) 50956 Euro (with 20% fertilizers reduction)

Operational framework Governance structure: Managing Authority OP Fisheries Financing mechanism: European Fishery Fund OP Fisheries Romania Direct beneficiaries: Society Visitors Indirect beneficiaries: Populating Units in need of small fish Fish consumers Payment mechanism: oneoff payment based on environmental commitments Fish farm administrator: Ciocanesti Piscicola Srl Environmental Service: Biodiversity protection

The values The logic Practices Scenario Business as usual practices Natura 2000 requirements Responsible aquaculture practices Sustainable practices are not in place No payment is granted Legal requirements are implemented Compensation for losses are granted according to legislative provisions More than normal good aquaculture practices are in place Action-oriented payments are granted à PES as incentive? Practices Scenario Business as usual practices Natura 2000 requirements Responsible aquaculture practices Sustainable practices are not in place 0 Legal requirements are implemented 800 Ron/ha = approx. 190 Euro/ha (up to 35% loss of income) 1000 Ron/ha = approx. 237 Euro/ha (up to 50% loss of income) More than normal good aquaculture practices are in place Up to about 60000 Euro/year, depending on the scenario.

Risks and assumptions Risk that: funds are not raised to cover start-up costs necessary to test the identified nature-friendly basins management practices; OP Fisheries 2014-2020 does not include environmental quality/biodiversity maintenance type of aquaculture payments. Assumption that in the meanwhile: results from the implementation of local development strategies or other initiatives will be in place that support business development opportunities. easier access to market for proved HNV/quality products, without necessarily having to obtain the organic certification.

Monia Martini mmartini@wwfdcp.ro www.wwf.ro http://wwf.panda.org/what_we_do/where_we_work/black_sea_ basin/danube_carpathian/our_solutions/green_public_funds/pe s/the_danube_pes_project/