Progress with Agricultural Nutrient Pollution Control Projects in Eastern Europe and Central Asia and Relevance to Complying with EU Agricultural and Environmental Directives Prepared for Regional Conference on "Agricultural Sources Pollution Control in Danube, Baltic and Black Sea Riparian Countries", Bucharest, Romania. September 30 - October 3, 2003 Jitenda P. Srivastava, Meeta Sehgal Environmentally and Socially Sustainable Development Unit World Bank

Deterioration of Black Sea Over the past decades, the quality of the Black Sea waters experienced a significant ecological decline leading to considerable economic and social losses, notably in health, tourism, fisheries and biodiversity. Deterioration has been caused by many factors: Ø Nutrient run off from agriculture Ø Insufficiently treated sewage Ø Conversion of wetlands Ø Coastal erosion Ø Introduction of exotic species Ø Eutrophication Ø Inadequate resource management Most prominent cause of Black Sea degradation is excessive discharge of nutrients – nitrogen and phosphorous

Strategic Partnership on the Danube / Black Sea Basin To address problem of excessive nutrient discharge, Global Environment Facility established Strategic Partnership on the Danube / Black Sea Basin The objective of the Partnership is to promote investments and capacity building to return the Black Sea/Danube Basin environment to its 1960s condition. Tangible Benefits include: Ø Improved Marine Ecosystem of Black Sea Ø Improved Lands – agriculture, forests Ø Increase farm and household incomes Ø Improved drinking water supply Ø Increased eco-tourism Ø Improved Biodiversity

Partners include: Ø Danube/Black Sea Basin Countries Ø World Bank Ø United Nations Development Program Ø United Nations Environment Program Ø European Commission Ø EBRD Ø European Investment Bank Ø USAID Ø WWF Ø Bilateral cooperation agencies Strategic Partnership on the Danube / Black Sea Basin

Strategic Partnership Investment Fund Ø Investment Fund established as investment arm of the Strategic Partnership Ø Funded by GEF and implemented by World Bank Ø Aim is to partially grant finance projects in the Danube and Black Sea basin that aim at nutrient reduction. Ø Has a proposed envelope of US$70 million to be approved in three tranches

There are 17 countries in the Black Sea Basin: AustriaHungary BelarusMoldova Bosnia-HerzegovinaRomania BulgariaRussian Federation CroatiaSlovak Republic Czech RepublicSlovenia GeorgiaTurkey GermanyUkraine Yugoslavia Only 15 countries are eligible for receiving grant financing from GEF Germany and Austria do not qualify Strategic Partnership Investment Fund

Knowledge Dissemination  Ø Knowledge sharing is key to the success to achieving overall objectives and remains an important component of each project  Ø Conference/Workshops are organized to provide a forum for information exchange  Ø The workshops are complemented by a Regional Distance Learning Program Ø Web site on the Strategic Partnership ( danube) has been establishedwww.worldbank.org/blacksea- danube

EU Environmental Acquis Ø Environmental Acquis covers a wide range of measures, mostly in the form of Directives Ø Countries aspiring for EU accession must incorporate EU environmental acquis into national legal order and ensure its implementation. Ø Acquis sets quality standards for Air, Waste Management, Water, Nature Protection, Industrial Pollution Control, Chemicals and Genetically Modified Organisms Ø Environmental Acquis is evolving Ø A well functioning institutional capacity is required for the application and enforcement of the environmental acquis

Nitrates Directive  Ø EU Council Directive 91/67/EEC concerns protection of waters against pollution caused by nitrates from agricultural sources Ø All Member States must incorporate the directive, set up a comprehensive monitoring network, establish a code of good practices and designate their vulnerable zones.

Nitrates Directive The European Commission emphasizes that all Member States : Ø arrive at a full implementation of the Nitrate Directive Ø reinforce surveys and controls at field level (including checking fertilization plans and records, manure storage and handling, soil analysis, natural buffer strips, etc.) Ø introduce dissuasive penalties for the producers who do not ensure eco- compliance.

Implications of EU Policy on Agriculture To be eligible for farm payments, farmers would be required to: Ø keep the land in good agricultural condition Ø comply with statutory requirements regarding --  public, animal and plant health  occupational safety  environment  animal welfare

Implications of EU Policy on Agriculture Ø To assist farmers to maintain land in good agricultural condition, Member States would be required to set up a system for advising farmers on land and farm management. Ø Farmers receiving over Euro 15,000 of direct payments or with a turnover of over Euro 100,000 would be obliged to participate in the farm advisory system within a period of 5 years. Ø The organizations providing the farm advisory services could be public or private. Ø If private, they would need to be overseen by a supervisory body established by the Member State

Agricultural Pollution Control Projects promote a number of policy, investment and capacity-building interventions, including: Ø Adoption of environmentally friendly agricultural practices by farmers and agro-processors. Ø Revision of the regulatory and/or policy framework towards one that supports reduction of nutrient discharge from agriculture. Ø Harmonizing national legislation with EU directives (nitrate directive), including Code of Good Agricultural Practices. Ø Public awareness to disseminate benefits of project interventions so that they can be replicated in similar areas within the country or other Black Sea/Danube riparian countries.

Looking Ahead Ø Sharing of Experiences and Lessons Learned from Pilot Projects  Ø Monitoring and Evaluation; Impact Analysis  Ø Replicating  Ø Increasing Country Commitments  Ø Widening Scope of Investments  Ø Emphasizing Private-Public Partnerships  Ø Broadening Partnerships