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Water Director's Meeting December 2013, Vilnius DG Environment
WG Economics: Report from Workshop and next steps; discussion and endorsement of the proposed approach Agenda point 1 e Water Director's Meeting December 2013, Vilnius DG Environment
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Objectives of the workshop
The workshop was organised as a "kick-off" meeting for the WG Economics, aiming at: Gathering experiences from river basins and MS on the review of Article 5 report, from the economic analysis perspective; Agreeing on a short list of urgent issues for the CIS to be developed in time for the 2nd RBMPs; Discussing the programme of the CIS WG on economics for the next two years.
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Outcomes of the workshop
Four types of activities that would require further action were identified: Share information Develop common understanding, methods & approaches Improve reporting Support policy questions Priorities were not made explicit during the workshop.
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Prioritising the Workshop output:
Issues which are urgent for Member States (economics for supporting the PoM, cost assessment and reporting) Areas where Member States have indicated readiness to contribute in the short term Joint processes and workshops between WG Economics and other WGs are suggested when it is considered useful (PoM & DIS)
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Input from (members of) the Economics WG on the review of:
Article 5 Workshop WG DIS (with participation of WG Economics) WG Economics Workshop on Exemptions – all relevant actors Joint Workshop PoM & Economics WG 21 January January – March 20-21/3 2014 May 2014 (date tbc) October 2014 (tbc) 1st quarter 2015 3rd quarter 2015 Input from (members of) the Economics WG on the review of: Economic analysis of water use Cost recovery Baseline The part on economics of the reporting guidance is expected to consist of: 1) a reporting template on cost. 2) a template on cost recovery assessment, on the basis on concrete examples provided (MS to submit) 3) a background document on proper accounting rules for clarifying how to account for and report subsidies in financial cost assessments (Being prepared by EWA with MS support) Which guidance is already available – WATECO and beyond 1) Illustrating the application of the cost-based method presented in the EU illustration sheet on ERC. 2) Financing instruments for supporting the implementation of measures – presentation of outcomes of the Economic Policy Instruments for water (EPI) project. The economic aspects to be covered in the Workshop should include: How to account for benefits Cost- benefits Analysis (CBA), use of valuation methods Disproportionate costs; links between affordability and exemptions; The workshop intends to increase understanding of How to use Economics in the Selection of measures by involving both PoM and Economic experts 1. Affordability – moving from workshop discussions to a “resource document” on affordability 2) MS to present identified funding possibilities for PoM financing (RDPs, OPs, national funding etc) To be specified depending on progress and identified needs in previous meetings Outcome Ensuring that the Economic analysis is used in the updated ART. 5 analysis Outcome Reporting templates for economic issues in the 2nd cycle Resource document on ERC calculations based on MS practices Outcome Workshop results will be used for further work on exemptions and affordability in 1st quarter 2015 Outcome Feed into resource document on affordability will help MS identify funding options and will secure that economic tools are used for the development of better PoMs Outcome Resource document on affordability Exchange of MS experience on Funding Outcome tbc
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Thank you for your attention
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