Policy review of the WS&D Policy SCG 7 November 2012

METHODOLOGY Ex-post assessment of the 2007 Communication on water scarcity & droughts Assessment of the extent to which water scarcity & drought issues have been integrated in the RBMPs

1) PUTTING THE RIGHT PRICE TAG ON WATER Limited implementation of cost-recovery and incentive pricing recovery of financial costs for water services is not yet the norm in all MS environmental or resource costs are often not considered The definition of water services is often not in line with the Commissions interpretation not sufficient funds to reduce leakages or to achieve environmental objectives

1) PUTTING THE RIGHT PRICE TAG ON WATER An important share of water abstractions for agriculture in the EU is not priced, even in water stressed areas In agriculture operational costs are only partly recovered for 10 Member States Capital costs are often subsidized No financial mechanism for recovering environmental & resource costs of abstractions giving incentives to using water more efficiently

2) Allocating water & water-related funding efficiently Authorization procedures for water abstraction or use are generally in place illegal abstractions remain an important challenge Restricting water use in times of WS&D included in many MS water allocation policies Environmental flow schemes are increasingly used as an element of water allocation Cost-effectiveness and cost-benefit analysis has seldom been used to prioritize investments under the RBMP process

3) Improving drought risk management Drought Management Plans are being developed but implementation and integration with RBMPs remains limited. Water Efficiency measures in the RBMPs can contribute to reducing vulnerability to drought; even if mainly focussing on addressing WS A prototype of the European Drought Observatory (EDO) has been developed EU wide drought indicators are now available Limited progress has been made with the use of EU Solidarity Funds in the area of droughts.

4) Considering additional water supply infrastructures The water hierarchy not always respected. Environmental impacts of new water supply infrastructure not systematically considered 30% of the screened RBMPs foresee reservoirs and other water infrastructure to increase water availability 25% of RBMPs include the development or upgrade of water transfer schemes Wastewater re-use is included in 50% of RBMPs Artificial aquifer recharge and rainwater harvesting in 30% of RBMPs The development or upgrade of desalinization plants is only presented in a few RBMPs. Adverse environmental effects of desalination are not always sufficiently considered.

5) Fostering water efficient technologies and practices Substantial water efficiency gains have been achieved in irrigated agriculture, but improving irrigation schedules and modernizing technologies can still provide significant water savings Water saving at the field level is not always effectively translated into overall water saving Efficiency margins are still significant in buildings, e.g. in relation to eco-design of taps and shower heads. In the EU there is a large diversity of the efficiency of drinking water supply systems but there is a need to consider their optimal efficiency level

6) Fostering a water saving culture A broad spectrum of awareness raising activities to foster water saving are being implemented Other tools such as incentive pricing, financing mechanisms for water saving, eco-design for water using appliances etc. are not always sufficiently present The European Water Stewardship (EWS) scheme includes criteria for certification which are closely linked with the main WFD requirements and can therefore be a useful tool to optimise water management at RB level

7)Improving the knowledge base EU wide coverage and long-time series of water quantity data are not yet available Streamlined data on state and pressures, impacts and effectiveness of responses to address WS&D still needed Progress towards the application of common WS&D indicators Water scarcity and water use efficiency research is scattered within the 6th and 7th Framework Programmes and stronger efforts are required to develop synergies with Member States research activities

INTEGRATION OF WS&D MEASURES IN THE RBMPs WS&D are recognized as relevant issues by RBMPs across the EU The analysis of water quantity aspects lacks adequate foundation in many RBMPs Quantity data are insufficient and water scarcity and droughts are often not clearly distinguished Water demand scenarios are presented for only 35% and water availability scenarios for less than 25% of the RBMPs

CONCLUSION Progress has taken place in implementing the 7 policy instruments identified in the Commissions Communication from 2007 The overall objective - to revert the WS&D trends - has not been achieved The WS&D policy has too self-standing and a stronger focus on quantity issues in the implementation of the WFD is critical

Please send any additional info to Questions? Please send any additional info to Henriette.Faergemann@ec.europa.eu