European Commission - DG Environment CBA in CAFE Cost-Benefit Analysis of the Clean Air for Europe Programme CLRTAP, TFIAM 28th session Haarlem, 7-9 May 2003 Matti Vainio European Commission, DG Environment, Air, Noise and Transport Unit

European Commission - DG Environment CBA in CAFE CAFE Baseline Stakeholder consultation l Access to the restricted web-site: l forum.europa.eu.int m Go to “Environment DG” m Self register to Circa m Once in, apply to CAFEBaseline Stakeholder consultation m Once in, apply to CAFE Baseline Stakeholder consultation m Your application will be sent to the “leaders” of the web-site (Matti Vainio, Meera Ghani and Janusz Cofala). m One of them will approve you and they you will have the rights to down and upload data, see the reference documents and who else is using the web-site (currently 77 users)

European Commission - DG Environment CBA in CAFE Take home message l Get a team to work closely with IIASA to take the results from RAINS, complement them with unquantified impacts (in a multi- criteria framework), and assess all monetary and non monetary benefits. l As an outcome the costs (from RAINS) and benefits (from this contract) will be analysed and presented in a transparent manner.

European Commission - DG Environment CBA in CAFE Introduction l l CAFE programme launched on 4 May 2001 l l Thematic strategy: outline the measures required to improve air quality and to meet environmental objectives in Europe l l Followed and/or accompanied by legislative proposals l l Several inter-linked contracts and lines of development to carry out the work required m Systematic Review of Health Aspects of Air Quality in Europe (WHO) m Development of the baseline and policy scenarios and integrated assessment modelling framework (RAINS) m Further development and application of the TREMOVE transport model (University of Leuven).

European Commission - DG Environment CBA in CAFE Service contract l l Open call for tender launched on 23 April, due 2 June, decision by mid July, 2003Objectives l l Analysis of the impacts and the costs and benefits of different policy options for improving air quality in the enlarged EU. l l Identify possible ancillary benefits and dis-benefits

European Commission - DG Environment CBA in CAFE Scope l l Current EU Member States, and relevant European Economic Area and accession countries as well as Switzerland l l 2010, 2015 and l l Primary and secondary particles, sulphur dioxide, nitrogen oxides, and tropospheric ozone and their effects on human health and the environment. l l Sectors: transport (all modes), energy production and combustion, industry and agriculture.

European Commission - DG Environment CBA in CAFE Methodology l l Needs to be transparent. m Based on the input from team lead by IIASA and from other sources l l Impact assessment needs to be carried out both in qualitative and quantitative terms. m Assessment is formally carried out through a multi-criteria criteria analysis

European Commission - DG Environment CBA in CAFE Tasks: Two phases Phase 1: Develop analytical framework (16 months) 1. Develop conceptual framework for to quantify the impacts of baseline scenario and alternative scenarios 2. Develop multi-criteria analysis 3. Ensure that costs and benefits are measured with same metric

European Commission - DG Environment CBA in CAFE Phase 1: Develop analytical framework 4. Review and consultations on the key monetary unit values r Link with NEBEI made explicit and workshop(s) foreseen r Stakeholder consultation foreseen r Specific budget reserve for NGO contribution requested r Update the BeTA monetary values established in the BeTa (successor of Alpha) database/calculation tool (website given at the end of presentation) r The outcome of this task will be a set of state-of-the-art monetary unit values and functions of marginal damage from air pollution for 2000

European Commission - DG Environment CBA in CAFE Phase 1: Develop analytical framework 5. Estimate marginal damage of pollutants for 2010, ‘15 and ‘20 6. Include the costs and benefits of the impacts of local scale 7. Develop framework analyse social and macro-economic impacts of improved air quality 8. Review and consult key monetary unit values 9. Create a modelling tool and reporting of the methodology 10. Carry out first assessments   Note: Analytical capability to carry out analysis needs to be partly operational within 12 months of the signing of he contract, and fully operational within 16 months of signing the contract.

European Commission - DG Environment CBA in CAFE Phase 2: Analyse (12 months) 1. Carry out bulk of the assessments 2. Report the results Note: Phase 2 corresponds mainly to “Lot 2” and “Lot 3” of the “Service Contract for the Development of the Baseline and Policy Scenarios and Integrated Assessment Modelling Framework for the Clean Air for Europe (CAFE) programme”

European Commission - DG Environment CBA in CAFE Organisation of work l Essential to share information with CLRTAP l Works for DG Environment m WG Target Setting and Policy Assessment will give guidance to DG Environment on choosing scenarios (including instrument choice) l Contractor will work closely with IIASA (RAINS) and and University of Leuven (TREMOVE)

European Commission - DG Environment CBA in CAFE Budget and further info Total budget € split as follows: Phase 1: € Phase 2: € For details see /air/cafe/activities/cba.htm (CAFE CBA) /enveco/studies2.htm (BeTa (benefits transfer)