1. Why can voluntary agreements between water companies, farmers and authorities help to implement the European WFD and CAP reforms? Ingo Heinz University of Dortmund, Germany Man and River System II – Interaction among Rivers, their Watershed and the Sociosystem http://www.sisyphe.upmc.fr/mr2/ 4-6 December 2006, Paris

2. How to tackle water problems? Voluntary agreements and negotiations (e.g. between farmers and water companies) Mandatory regulations (e.g. statutory rules) Charges on water use (e.g. on pesticides) Subsidies (e.g. agri-environmental program)

3. Water and agriculture Diffuse pollution (e.g. nitrate) Water shortage (e.g. Spain) Conflicts with other water users Water problems:

4. Difficulties to tackle diffuse pollution Polluter pays principle does not work Who caused which pollution? Monitoring often extremely costly Enforcement of statutory rules difficult

5. Statutory rules High costs Low effectiveness Charges on pollution Not site-specific enough Low cost-effectiveness Agri-environmental programs Not site-specific enough Low cost-effectiveness Voluntary agreements and negotiations Site-specific High cost-effectiveness Diffuse pollution

6. Voluntary agreements and negotiations: Advantages … Authorities support the implementation of agreements Prevent increase of pollution Under-run statutory limit values (e.g. 50 mg nitrate) Agreements often more stringent than statutory rules Monitoring easy, e.g. Nmin soil analysis; plot-card index Expertise of farmers and water companies used High motivation of farmers to collaborate

7. m³/a millionEUR/aEUR/m³ Water abstraction100 Expenditures of water company (compen- sation payments, advisory services) 480,0000.005 Saved costs of water company (treatment) 1,250,0000.125 Economic benefit770,000 Stevertalsperre Remedial case: Pesticides > 0.1µ/L

8. m³/a millionEUR/aEUR/m³ Water abstraction25 Expenditures of water company (compen- sation payments, advisory services) 420,0000.016 Saved costs of water company (treatment) Economic benefit Holsterhausen Preventative case: Nitrate: < 7 mg/L

9. EU Water Framework Directive WFD 1.Set up river basin management plans 2009 2.Achieve cost recovery + incentive water pricing 2010 3.Establish cost-effective programs of measures 2012 4.Achieve good status of water bodies 2015 5.Justify derogations from good status of water bodies Key requirements:

10. WFD + Voluntary agreements contribute to cost-effective programs of measures Voluntary agreements… prevent increasing pollution and reverse rising trends compare costs with societal benefits and avoid disproportionate costs incorporate stakeholders with different preferences can be applied in watersheds where no water companies operate

11. EU Common Agricultural Policy CAP 2. Link financial supports to farmers from agri- environmental programs to meeting the rules of good agricultural practice EU regulation 1698/2005 on “Support for Rural Development” Key requirements: 1.Link direct payments to farmers to compliance with environmental standards (e.g. water, food safety, animal health) EU regulation 1782/2003 on “Cross Compliance”

12. Regulation 1782/2003: Cross compliance Maintain farmland in good status 2005 Maintain long-term grassland 2005 Comply with 19 existing EU Regulations 1. Nitrate, sludge, groundwater, FHH 2005 2. Pesticides, food, animal health 2006 3. Animal protection, etc. 2007 Requirements:

13. CAP reforms + Voluntary agreements Voluntary agreements … 1.help farmers in complying with water-related and other environmental standards (e.g. reduction of soil erosion) 2.help farmers in meeting the rules of good agricultural practice (e.g. EU Nitrates Directive; national regulations concerning use of pesticides and fertilisers) 3.ensure moderate financial burdens to farmers due to cost-effective agreements and financial supports provided by water companies

14. WFD + CAP reforms + Voluntary agreements Voluntary agreements … Contribute to an area-wide application of a more environmentally friendly agriculture EC No 1782/2003 sustainable rural development EC No 1698/2005 1.Further interest groups participate, such as cities, nature conservationists, fisheries, hydro-power producers…. 2.Experiences on changes of farming practices can be transferred into areas where no agreements exist

15. WFD + CAP reforms + Voluntary agreements Example of area-wide voluntary agreements: “Gebietskooperationen” in Lower Saxony, Germany Founded in 28 sub-river basins For each a river basin management plan will be established According to an Ordinance of the Ministry of Environment of Lower Saxony issued on 25 March 2005 www.nlwkn.de www.nlwkn.de (Wasserwirtschaft)

16. Water use Water quality Good status of water bodies Voluntary agreements Site-specific and cost-effective changes of farming practices WFD requirements CAP reform

17. Topics for future research 1.Update studies on voluntary agreements in the EU 2.Investigate voluntary agreements in the new EU Member States 3.Analyse the contributions of voluntary agreements to meet the WFD requirements in the EU 4. Analyse the contributions of voluntary agreements to implement the CAP reforms in the EU

18. Topics for future research 5.Assess voluntary agreements for water scarcity problems 6.Explore the advantages of area-wide agreements in the EU (“Gebietskooperationen” in sub-river basins)