In-depth Assessment economic analysis - summary of results SCG meeting 11 March 2009 Anita Payne, Unit D.2, DG Environment, European Commission

Outline Overview of In-depth Assessment project Summary of results Next Steps

Overview of In-depth Assessment - Background Announced in 2007 WFD Implementation report Carried out by a consortium of consultants Large, complex task Faced a number of challenges (eg methodological) Progress reports provided to SCG in May and Nov 2008

Purpose of assessment To follow up on issues identified in 2007 WFD Implementation report Inform the development of the reporting format for first RBMPs Provide information on how to improve implementation of economic tools in WFD Inform the development of compliance checking approach

In-depth assessment – economic analysis Scope of Assessment All relevant economic issues were analysed : 1. Definition of water services and consideration of water uses 2. Level of cost recovery/which costs are included and how 2a. Sub-topic: Calculation of cost recovery 2b Sub-topic: Environmental and resource costs 2c Sub-topic: Incentive pricing 3. Baseline scenario Information base for making judgements on cost effectiveness of measures Transboundary activity (eg data collection, cooperation) was considered for each of the elements above. Notes for the Speaker: More information on the Directive, the implementation process and also the guidance documents are available on the internet.

Limitations, lessons learned solely focussed on Art.5 reports. It does not take account of work undertaken since these reports were published. focussed on whether a particular issue (eg incentive pricing, PPP) was included in the report. A detailed assessment of the quality of how the issue was treated was outside the scope. Future assessments will need to consider how the quality of the economic analysis can be assessed. No account was taken of the horizontal linkages between the economic elements of WFD. Each issue was considered separately. Important linkages may have been over-looked.

SCG paper - Summary of results Expands on the emerging findings presented to SCG in May 2008 SCG paper sets out the findings and recommendations for each particular issue covered in the assessment. Where possible/relevant, the economic reporting sheets have taken account of the results of the in-depth assessment.

take note of the results of the in-depth assessment Next Steps SCG is invited to: take note of the results of the in-depth assessment consider the next steps in the context of the development of the CIS work programme for 2010-2012. Comments welcome – in particular regarding whether it would be useful to hold a workshop to discuss WFD economics – as proposed by Water Directors Notes for the Speaker: More information on the Directive, the implementation process and also the guidance documents are available on the internet.

For information – Commission study on water pricing Commission has launched a study which is reviewing available draft RBMPs in the context of the implementation of article 9. The study will inform the Commission’s approach to compliance checking whilst also considering water pricing in the wider policy context of water scarcity and droughts and climate change adaptation. Where information regarding Art.9 is not available in draft RBMPs, the consultants (Entec) may contact Member States to determine if any information is available.