Selecting cost-effective measures for achieving the

WFD

Jonathan Fisher- Senior Water Economist

Outline: points and issues from Guidance

Aim = provide basis for discussion of guidance

• Role and purposes of cost-effectiveness analysis

• Key Issues and requirements

• Assessing Effects of options

– Challenges

• Costs and impacts of options

– Elements

– Challenges

Role and purposes of cost-effectiveness analysis

• Systematic and even-handed assessments and treatment of costs and effectiveness of options across sectors

• Help derive packages to achieve various water states in RBMPs and HMWB designation by 2015, 2021 and 2027

• Input costs of these packages to determine whether or not they are disproportionate (for derogation decisions - see other Session)

Key Issues and requirements

• Cover all sectors

• Cover a wide range of options and measures

• Encompass all impacts and effects systematically without double counting

• Be robust and transparent

• Be practical and proportionate

• Help refine options

Assessing Effects of options

• Identify key segments of pressures causing problems

• Identify gap (risks of not achieve good)

• Collate info (eg BAT reviews, stakeholder views):

– to identify targeted options

– to indicate their effects on water status + reducing risks of non-compliance

Assessing Effects of options: Challenges

• How combine/allow for effects on various parameters affecting good status

• How allow for uncertainties about effects on key parameters (esp biological)

• how allow for lags for:

– option to be implemented

– target stakeholders to respond

– full effects on water status (+ synergies)

• How increase effectiveness over time?

Costs and impacts of options: Elements

• Financial costs (NPVor EAV)

– pro formas

– scrutiny - benchmark cost estimates

– ?Scope to reduce costs - extend deadline?

• Other impacts: describe + explain why additional:

– Economic impacts • sectoral or regional employment

• exchequer costs

– who pays

– Non-water environmental impacts

Cost-effectiveness: Challenges

• How assess economic impacts and other impacts?

• How allow for uncertainties about (lagged) effects and costs and impacts

• Need to highlight transparently the basis for the estimates

– Present ranges and key assumptions

• How derive and present summary CE measures?

Session Discussions

• Questions to clarify WATECO approach/guidance

• Specific illustrative Presentations:– Dietrich Borchardt - Pressures + CE Analysis in Germany

– Juha Hunkatukia - CE in international basin (Baltic)

– Ian Dickie - Assessing agricultural options

– Laure Ledoux - how assess diverse impacts and summarise them

• Open discussion of these and other issues