1. The French National Agency on Water and Aquatic Environments
« CIS-SPI's (science policy interface) on economics: some insights for further developments » Sarah Hernandez CIS-Workshop on WFD-economics: taking stock and looking ahead October Liege

2. Elements of context
Presentation of the Common Implementation Strategy :
Establishment in 2001
Forum of cooperation to tackle challenges raised by the implementation WFD
Organised around activities (working groups, expert groups, ad hoc activities)
Aims of the CIS :
coherent and harmonious implementation
common understanding and approach
Hydromorphology
Economics
Biodiversity
Ad hoc activities
Science Policy Interface

3. Establishment of the CIS-SPI ad hoc activity :
Elements of context
Strong scientific and technical support needed by the WFD implementation
But knowledge transfer not satisfactory (few outputs taken-up)
Need of a sustainable Science-Policy Interface discussed in the framework of the CIS since 2005
Adopted at the last Water Directors Meeting (30th November 2009) for
To ensure a dynamic interface
To identify research needs
To improve research results dissemination to support WFD implementation
CIS-SPI meeting
September 30th

4. Some major issues in the current European practice …
Economics was a rather new element compared with other WFD fields of work – “Learning by doing”.
Elaboration of tool kits, guidelines, and policy recommendations for the development of economic aspects in relation to WFD, based partially on WATECO.
Pilot surveys supporting the economic analysis for RBPM preparation (baseline scenarios, water uses economical assessment, cost recovery analysis, costing and cost-effectiveness analysis of measures, cost-benefit analysis for HMWB or exemptions, disproportionality).
This first cycle has allowed to many people to understand what they can expect from economics 4 4

5. Some major issues in the current European practice …
Collection of data at the accuracy level required and methodological developments are still challenging.
The difficulties rely mainly on the unequal awareness of what economics could bring in the planning process
A limited human capacities and expertise at the ministerial level and water regional level but totally absent at other levels of public administration

6. Key issues
Economic valuation of ecological services needs more development
Assessment of environmental benefits related to good status / environnemental and resource cost
Assessment of the effectiveness of non-technical measures such as hydromorphology, buffers zones, wetlands restoration
Assessment and use of other social values enhanced by perception, history and traditional practice in the use of water and as well as the institutional context in which water regulation is taken place.
Economic analysis needs to be improved in:
the process of conducting these surveys in order to improve transparency in the way data and information are used, more objectivity of the results, acceptance and governance for the implementation of the measures and finally, to solve geographical and time scale in estimating effectiveness and benefits.
The estimation of the transactions costs generated by the implementation of these measures (administrative costs, information costs, reporting/monitoring costs, negotiation costs and compliance costs
The dissemination to policy-makers

7. Key issues
Alternative financing approach by the use of economic and market-base instruments for the implementation of WFD
to deepen the conditions for efficiency of traditional
“right” combination of collective (cooperative) action, market economic tools and regulation for achieving the WFD objectives
Affordability of measures:
Guidance on disproportionate costs requires an assessment of affordability of measures for different sectors (thresholds ???; integration of equity and social considerations) 7 7

8. Cross-cutting issues…
Development of complementary and more integrated indicators for water quality
Improvement of WFD water quality monitoring programmes 
Research on pressures-impacts relationships – a more holistic approach
Development of an ecosystem services approach in water management
Adaptation to climate change (primary and secondary effects) and more generally to other pressures of global change
Management plans and Programmes of measures: articulation between different spatial and temporal scales between research, monitoring and management 

9. Current projects … IWRM-Net
ESAWADI project
to analyze and provide advice on the potential usefulness the ecosystem services assessment (ESA) approach
To link economic elements and requirements of the WFD and the current “state-of-the-art” regarding valuation of ecosystem services
Water Cap & Trade :
Design and assessment of the potential for water market scenarios in Southern Europe, focusing in particular on their socio-economic implications by mobilizing complementary socio-economic methods and tools. 9 9

10. On-going projects … ONEMA
Comparative analysis of European practice on :
Disproportionate costs
Environmental and resource costs
Cost-effectiveness analysis
Ecological, economic and institutional conditions for water markets
Public trust for ecological dammage 10 10

11. Recent developments : Game theory and experimental economics11 11

12. European Environmental Agency
Recent developments : Spatial analysis of the production and use of ecological services related to water resource and ecosystems
Ecosystem Accounting for the Cost of Biodiversity Losses: Framework and Case Study for Coastal Mediterranean Wetlands
European Environmental Agency 12 12

13. Thanks sarah.hernandez@onema.fr13