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

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

3. 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)

4. 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

5. 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

6. 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

7. 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