Role of socio economics in setting targets and measures Mansi Konar Marine and fisheries economics, Defra

Key role socio economics can play in MSFD Identifying the reasons for action and providing evidence on the extent of the problem Assess the value of benefits from taking action to improve the environment Socio economics provide a key link to measures and targets Ensure that the most cost effective measures are chosen to achieve the targets Helps understanding the limitations/challenges of measures in achieving targets (disproportionate costs)

UK’s work on targets, BAU and Cost of Degradation GES Descriptors Targets and indicators for descriptors What does Environmental State (ES) under GES look like? GES Targets and Indicators (CEFAS and JNCC) Scenario of targets Qualitative/Quantitative Pressure/State based Changes in ES between GES and BAU Changes in Ecosystem services Changes in Human Welfare Cost of Degradation Business as Usual (ABPMER and Eftec) Human Activities Pressures What does Environmental State (ES) under BAU look like?

Outline of Practical steps for socio economic analysis in MSFD STEP 1 - Establish objective STEP 2 -Define baseline STEP 3 - Define options being analysed   STEP 4 - Impacts of options on marine activities and ecosystems STEP 5 - Monetary Valuation of Costs and Benefits STEP 6 - Comparisons of Costs and Benefits STEP 7 - Consideration of distributional impacts STEP 8 - Sensitivity analysis STEP 9 - Reporting Source – Handbook for undertaking socio-economic analysis for Marine Strategy framework directive: Practical guidelines for applied analysis

Issues to consider when setting targets and selecting measures Need to understand the link between our GES targets and the measures needed to achieve them. Focus of the Directive is primarily on putting in place measures to achieve GES – but socio-economic considerations do come in at this stage. Need to adopt an rolling analysis approach on target setting to enable building the picture over time Need to have clear understanding on the gaps in the data, its limitations and how to deal with uncertainty and risks Need to understand where management measures can’t easily influence the targets set or if measures are likely to be disproportionately costly. Need to understand the clear links between existing policies (e.g. WFD, CFP) and GES to ensure additionality.

Way forward Working group ESA already looking at issues such as disproportionate costs and socio economic considerations when setting targets Working closely with WFD colleagues and ensuring that we have a clear understanding of the lessons learnt Developing close contacts with the other working groups including DIKE UK currently doing some work on CBA of illustrative measures to inform the setting of targets.