1. A pilot appraisal at catchment level for the second RBMP cycle: Experience from the UK
Presented by: Simon Scanlan (Defra) Kathrynne Moore (Environment Agency)
Date: 2 October 2013

2. Responsibilities - England
Defra & Environment Agency agree process
Environment Agency
Develop tools
Draft Programmes of Measures
Catchment level ecosystem services appraisal
Analysis of costs, benefits and distributional impact
Report alternatives in the draft RBMPs
Defra Ministers decisions on disproportionate cost
Environment Agency finalises RBMPs

3. Cost benefit analysis
This is the major economic analysis in England for second cycle
Stage 1 CBA using national willingness to pay survey
Stage 2 CBA if more detailed analysis necessary and justified
Where reaching Good in this cycle appears not justified, CBA of alternative programmes of measures

4. UK economic appraisal timetable
August 2013 to March 2014
April to January 2015
January 2015 onwards
objectives and measures info complete for draft plans
Nov classification results and updated building blocks
Objectives for 2nd cycle
Feb 2014 AWB/HMWB 2013 classification
Sept classifications
July 2014
April/ May 2015 classification
Draft plan finalisation
AppraisalSummary Table, Stage 1 CBA, & objective setting
Draft RBMP consultation
Start planning for cycle 3
review
review
review
quick review
Start to rework appraisals based on consultation and affordability constraints
March 2014
May 2015
September 2015 RBMP submitted to Ministers
Stage 2 CBA & objective setting
Completion of stage 2s where needed
Oct 2014
Engagement
Using existing engagement mechanisms and channels
Feb 2014 last date for stakeholder info to be considered for draft plans*
Draft RBMP consultation
* Info after this date can still be fed in but will not appear in the draft plan workings
Dec 2014

5. Analysis of programmes of measures
Bottom-up approach
Common methodology for valuing costs and benefits
Discussed with stakeholders
Toolkit developed
170 local staff trained
350+ catchments, 6000 water bodies
Pilot appraisals to test the approach and toolkit

6. A pilot economic appraisal: River Waveney Catchment
Kathrynne Moore
Technical Advisor - Environment Agency
A pilot economic appraisal: River Waveney Catchment

7. Anglian river basin district
UNCLASSIFIED

8. River Waveney catchment
UNCLASSIFIED

9. Defining measures, costs and benefits
Catchment group.
Information from investigations and in-depth catchment knowledge.
Working with others:
The River Waveney Trust (catchment steering group)
Suffolk Wildlife Trust
Woodland Trust
Farmers, and local land owners and communities
Costs:
Environment Agency cost data – local and national/generic source.
External cost data i.e. Woodland Trust provided costs for tree planting.

10. Measures, costs & bundles sheet
List measures
Costs – capital and annual
Likely delivery sector

11. Bundle of measures – to get to good by 2021
Measure type
Number of unique measures
Capital costs
Annual costs
Annual costs/year (over 40 years)
Point source 1
£1,440,029
£2,104,170
£52,604
Diffuse oollution 7
£5,048,889
£5,210,374
£130,259
Habitat improvements 3
£4,879,600
£4,396,480
£109,912
Invasive non-native species 4
£100,705
£1,914,108
£47,853

12. Appraisal Summary Table
UNCLASSIFIED

13. Monetised benefits
Length of benefit (in km) for each 6 ‘National Water Environment Benefits Survey’ categories:
Fish
Invertebrates and other animals
Plants
Flow and channel
Clarity of water
Safety of water for recreational contact

14. Stage 1 valuation sheet Meta data for the catchment
Benefit lengths and willingness to pay value
Costs and risk of failure
UNCLASSIFIED

15. Calculating the benefit cost ratio
Calculation
Expected present value benefits
Expected present value costs
2.95
Benefit cost ratio
Non-monetised benefits – socially beneficial

16. Dealing with uncertainty
Built-in sensitivity tests:
Adjusting costs
Adjusting benefits (willingness to pay values and success of measures)
In this example, all the sensitivity tests result in a BCR > 1.
Automatic sensitivity tests
UNCLASSIFIED

17. Final appraisal report
Consistent way of summarising results
Support local engagement and consultation on the draft river basin management plan.
Help us to understand the national picture.
Aids the review of economic appraisals and future iterations.

18. Issues for WG?

19. Issues emerging Costs compared to benefits (BCR<1)
Accepted non-market benefit valuations for the water environment (willingness to pay study)
Some gaps (minor?) need qualitative information
Uncertainty of outcomes, uncertainty of values
National v local
Affordability: what analysis to present (sectors, households, state)
Options to present to decision maker: prioritisation
Process demands resources and time – cannot be perfect, must be proportionate