1. Selecting cost-effective measures for achieving the WFD Jonathan Fisher- Senior Water Economist

2. 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

3. 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)

4. 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

5. 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

6. 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?

7. 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

8. 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?

9. 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