Environmental and resource costs Results of drafting group “ECO2” under WG2B WD December 2-3, 2004

ECO2 mandate from WG2B Clarify concept of environmental and resource costs in the EU Water Framework Directive

Environmental and resource costs in the WFD Explicitly: Art. 9: cost-recovery assessment, including environmental and resource costs Implicitly: Art. 9: Pricing/tariff setting Annex III/Art.4: Cost-benefit analysis (CBA)

Questions identified in ECO2 What are we talking about? How do we measure them? What do we use them for? WE NEED A CONCEPTUAL FRAMEWORK WE NEED TO ADVISE WHEN TO USE WHICH APPROACH WE NEED TO ADVISE HOW TO USE OUTCOMES FOR DIFFERENT PURPOSES

or Significant pressure Impact on (a)biotic water environment Damage to water environment Damage to other water uses Measures taken to prevent/avoid/mitigate? Costs of these measures Effect of these measures: standards met? yes no Costs of additional measures Direct or indirect valuation method or Estimation of external environmental costs

Main messages from ECO2 Different costs for different purposes Different non-contradictory methods to estimate ERC: based on cost estimates based on benefit estimates Choice for either approach depends on: use or purpose (required) reliability and accuracy estimates data availability Estimation depends on physical chars water system; => hence link to IMPRESS vital

Results Workshop proceedings (Amsterdam, 26 March 2004) Dissemination knowledge and experiences Sharing information from ECO2 Illustration European case study examples Information sheet Clear framework, definitions and terminology Which approach for which purpose? Practical illustrations Links with IMPRESS Information sheet on CIRCA since August One written comment (lead to clarification) During WG2B meeting no new issues identified During SCG no new issues identified