International Expert Consultation“Towards Integrated River Basin Management”

31 May 2006, Bratislava – Slovakia

““Getting the prices rightGetting the prices right””under the EU Water Framework under the EU Water Framework

DirectiveDirective

dr. Stefan dr. Stefan KuksKuksUniversity of University of TwenteTwente

WaterboardWaterboard ReggeRegge and and DinkelDinkelNetherlandsNetherlands

Schelde

MaasRijn

Eems

The Netherlands: 60 % below sea level

Water management is of key interest

The Dutch administrative modelThe Dutch administrative model

General democracy• Central government, including the State Water

Authority• Provincial government: 12 provinces• Local government: 500 municipalitiesFunctional democracy• 27 regional water authorities (waterboards):

smaller than a province; covering several municipalities

The The DutchDutch administrativeadministrative modelmodel

Administrative boundaries• State waters are managed by the state water

authority (‘Rijkswaterstaat’)• Regional waters are managed by the

waterboards• The boundaries of waterboards follow water

sheds (mostly tributary water basins)

Flood control Flood control –– Delta worksDelta works

Grevelingen Barrier Oosterschelde Barrier Haringvliet Barrier

Afsluit Barrier Hartel Barrier

Flood control Flood control –– Delta worksDelta works

The Eastern Scheldt storm surge barrier (1986)

Flood control Flood control –– Delta worksDelta works

The Maeslant moveable Barrier (1997)

Flood control Flood control –– strengthening strengthening river dykesriver dykes

3131--55--20062006 1212

Map of the Netherlands divided into

27 waterboards

The Dutch administrative modelThe Dutch administrative model

Waterboards are autonomous• regulatory authority (jurisdiction)• taxation authority• they started as bottum-up organisations of

landowners with a common interest in flood protection and drainage

• centralisation tendencies since 1800 resulted in ‘co-governance’ between state, provinces and waterboards

The Dutch administrative modelThe Dutch administrative model

Waterboards must cooperate• implementation of national and provincial water

policy plans required• dependency on provinces and municipalities to

get water issues incorporated in land use planning

• water management is also connected with environmental policies, nature restoration, agricultural policies

Evolution of Evolution of waterboardwaterboard taskstasks

Quantity management (original tasks)• Flood protection (sea and river dikes)• Water level control (drainage)

Quality management (since 1969)• Direct: construction and operation of waste

water treatment plants• Indirect: regulation of waste water discharges

and non-point sources

Evolution of Evolution of waterboardwaterboard taskstasks

Integrated water management (since 1985)• Considering the water system as a whole• Taking into account the interconnection between

ground and surface water• Taking into account quantity and quality aspects

together• Taking into account ecological aspects of a

water system

Evolution of Evolution of waterboardwaterboard taskstasks

Anticipation on climate change (since 1995)• Space for water in the Dutch delta area: water

storage in flood plains (retention)• Restoration of the natural dynamics of rivers

(resilience)• Land use decisions need to be assessed on

water risks

OrganisationOrganisation of the Water Cycleof the Water Cycle

Drinking waterDrinking waterSewage Sewage

collection and collection and transporttransport

Wastewater Wastewater treatmenttreatment

OrganisationOrganisation 10 10 DrinkingwaterDrinkingwater

companiescompanies

500 500 MunicipalitiesMunicipalities

27 27 WaterboardsWaterboards

Total cost per householdTotal cost per household

Average cost of water consumption (per year)Average cost of water consumption (per year)

Revenue trends water boards & municipalitiesRevenue trends water boards & municipalities

BillionBillion20032003

€€ 2.52.5

The taxation authority of The taxation authority of waterboardswaterboards

• no general contributions from the nationalbudget (provinces and municipalities do get suchcontributions)

• expenses should be fully recovered bywaterboard taxations

• expenses fluctuate according to regionalcircumstances, weather conditions, and politicalambitions

Full cost recovery of water servicesFull cost recovery of water services

polluter pays principlepolluter pays principle

Polluters pay a levy based on thePolluters pay a levy based on thenumber of pollution units in theirnumber of pollution units in theirwaste water:waste water:•• Every householdEvery household•• Every industrial plantEvery industrial plant•• No levy for diffuse sourcesNo levy for diffuse sourcesPR

INC

IPLE

PRIN

CIP

LE

Water QualityWater QualityWater Quality

Full cost recovery of water servicesFull cost recovery of water services

Profit principle (participation for payment)Profit principle (participation for payment)

PRIN

CIP

LEPR

INC

IPLE

Water System( flood protection &

water quantity )

Water SystemWater System( flood protection & ( flood protection &

water quantity )water quantity )

Stakeholders pay according to their Stakeholders pay according to their interest:interest:

•• Land owners (agriculture and Land owners (agriculture and nature) nature) pay a charge based on the pay a charge based on the number of acres of land they ownnumber of acres of land they own

•• Owners of residential or Owners of residential or industrial property industrial property pay a charge pay a charge based on value of building propertybased on value of building property

•• Inhabitants Inhabitants pay a charge per pay a charge per householdhousehold

1992 1992 –– Important Important changechange in the in the pparticipatoryarticipatory structure of the structure of the waterboardswaterboards• In 1992 the central government decided that water

boards should not only recognize the specific interests of specific user groups, but also should act on behalf of a general interest. Therefor, the Water Board Act of 1992 introduced a general water board taxation for all citizens (additional to the already existing taxations for specific user groups), while allowing general citizens to acquire an amount of water board seats equivalent to their contribution share.

Regional levelRegional level (Water Boards)(Water Boards)

>>>>>>

BillionBillionANNUALANNUAL

€€ 2.52.5

National level National level (Ministry of Transport, Public Works & Water Management )(Ministry of Transport, Public Works & Water Management )

5 5 yearsyears

+ 50 %+ 50 %

€€ 1.51.5BillionBillionANNUALANNUAL

EUWARENESSEUWARENESSEuropean Water Regimes and the Notion European Water Regimes and the Notion

of a Sustainable Statusof a Sustainable Status

www.euwareness.nlwww.euwareness.nl

funded by the European Commissionfunded by the European Commissionunder the 5th Framework Program for Researchunder the 5th Framework Program for Research

QuestionsQuestions forfor research research onon the the evolutionevolution of water regimesof water regimes1.1. DescribeDescribe regime regime evolutionevolution in in sixsix EuropeanEuropean countriescountries: :

NetherlandsNetherlands, , BelgiumBelgium, , FranceFrance, Spain, , Spain, ItalyItaly, , SwitzerlandSwitzerland

2.2. IdentifyIdentify and and explainexplain regime regime changeschanges ((transitionstransitions) per ) per countrycountry

3.3. FindFind out out ifif anan evolutionaryevolutionary patternpattern existsexists thatthat these these countriescountries have in have in commoncommon

4.4. WhatWhat cancan we we learnlearn fromfrom attemptsattempts toto turn turn nationalnationalregimes regimes fromfrom complex complex intointo integratedintegrated regimes? regimes? ToTo whatwhatextentextent do do countriescountries succeedsucceed toto developdevelop integratedintegratedregimes and at regimes and at whatwhat pointpoint do these regimes do these regimes remainremainfragmentedfragmented??

Triggers and conditionsthat determine the effectof triggers

Property rightsestablished to awater resource

Public policies dealingwith water demandsand rivalries

Regime type / phase(evaluated in terms ofinstitutional sustainability)

Water resource useand resource status

Political context Resource context(evaluated in terms ofecological sustainability

SustainabilitySustainability fromfrom the the perspectiveperspective of of EuropeanEuropean water water policypolicy

•• EvolutionEvolution of of EuropeanEuropean water water policypolicy•• FirstFirst generationgeneration of of directivesdirectives: 1973: 1973--19801980

focus focus onon immissionimmission (state of the environment)(state of the environment)

•• SecondSecond generationgeneration of of directivesdirectives: 1991: 1991--19981998focus focus onon emissionemission ((regulationregulation of target of target groupsgroups))

•• Water Water FrameworkFramework DirectiveDirective: 2000: 2000focus focus onon ecologyecology

SustainabilitySustainability criteria in the criteria in the EuropeanEuropeanWater Water FrameworkFramework DirectiveDirective ((WFDWFD))

•• GoodGood ecologicalecological statusstatus

•• IntegratedIntegrated water management at water management at riverriver basinbasinscalescale

•• GettingGetting allall usersusers involvedinvolved ((participationparticipation))•• ExpandingExpanding the scopethe scope•• IntegrationIntegration of of fragmentedfragmented policiespolicies ((streamliningstreamlining

legislationlegislation))•• RedistributionRedistribution of of costscosts ((gettinggetting the the pricesprices rightright))

Water utilisationpattern• Natural factors• Socio-economic factors

Governancestructure1. Levels and scales2. Actors and networks3. Perspectives and objectives4. Strategies and instruments5. Distribution of resources

Adaptive responses1. Restructuring levels and scales (positioning the river basin level)2. Involving new actors (participation of all users)3. Reformulating the policy problem (including all water values)4. Integrating policies (using planning and IWRM)5. Redistributing resources (limiting rights, internalizing costs, full cost recovery)

Common pattern:Common pattern:Simple regimes (1800Simple regimes (1800--1900)1900)

•• Constitution of the public water domain (new Constitution of the public water domain (new constitution and civil code)constitution and civil code)

•• Central state taking responsibility for flood defence and Central state taking responsibility for flood defence and river management for navigationriver management for navigation

•• Definition of principles for expropriation and Definition of principles for expropriation and compensation (civil rights)compensation (civil rights)

•• Common property arrangements for drainage and Common property arrangements for drainage and irrigation (bottom up)irrigation (bottom up)

•• In Netherlands: first signs of complexity due to In Netherlands: first signs of complexity due to competence struggle between central state and competence struggle between central state and decentraldecentral water boardswater boards

Common pattern: Common pattern: Regime changes towards low Regime changes towards low complexity (1900complexity (1900--1950)1950)

•• Concern for public health and sanitationConcern for public health and sanitation•• Development of infrastructure for water supply and Development of infrastructure for water supply and

seweragesewerage•• New actors (the water service providers) enter the water New actors (the water service providers) enter the water

management arenamanagement arena•• Low complexity refers to the fact that various users were Low complexity refers to the fact that various users were

claiming the use of the same resource, resulting in claiming the use of the same resource, resulting in rivalriesrivalries

Common pattern: Common pattern: Regime changes towards medium Regime changes towards medium complexity (1950complexity (1950--1970)1970)•• Growing expansion of national populations and national Growing expansion of national populations and national

economies after World War II: increasing demands for economies after World War II: increasing demands for waterwater

•• International treaties on water pollution prevention International treaties on water pollution prevention •• Growing awareness of water pollution and nature Growing awareness of water pollution and nature

conservation: increasing public and political debate conservation: increasing public and political debate about natural values of waterabout natural values of water

•• Controlled use expansion, deliberation of interests, and Controlled use expansion, deliberation of interests, and redistribution of rightsredistribution of rights

Common pattern: Common pattern: Regime changes towards high Regime changes towards high complexity (1970complexity (1970--1985)1985)•• Around 1970 many European countries adopted some Around 1970 many European countries adopted some

form of a surface water protection actform of a surface water protection act•• First attempts to control water overuse by means of First attempts to control water overuse by means of

planning or restrictionsplanning or restrictions•• Water demands could no longer be met in an Water demands could no longer be met in an

unrestricted way.unrestricted way.•• Water depletion comes on the agenda as a policy Water depletion comes on the agenda as a policy

problem, but this is not responded yet by policies to problem, but this is not responded yet by policies to prevent water depletionprevent water depletion

Common pattern: Common pattern: Regime changes towards integration Regime changes towards integration (1985(1985--2000)2000)•• New tasks that enter the public domain are:New tasks that enter the public domain are:

•• Groundwater protection and diffuse pollution controlGroundwater protection and diffuse pollution control•• Water drainage and irrigation overuse control to fight against Water drainage and irrigation overuse control to fight against

water depletionwater depletion

•• Introduction of integral water system approach, also Introduction of integral water system approach, also taking into account ecological aspects, which results in taking into account ecological aspects, which results in attempts towards:attempts towards:

•• Water policy planningWater policy planning•• Institutionalization of some form of a water basin approachInstitutionalization of some form of a water basin approach•• Integrated management and legislationIntegrated management and legislation•• More user participationMore user participation•• Redefinition of the public and private water rights domainRedefinition of the public and private water rights domain

Common pattern: Common pattern: Regime changes towards integration Regime changes towards integration (from 1995 on)(from 1995 on)•• Heavy river floods across Europe made some Heavy river floods across Europe made some

governments aware of the relation with climate change governments aware of the relation with climate change and the need to allow more river dynamics in floodplains and the need to allow more river dynamics in floodplains and to restore them instead of and to restore them instead of ‘‘artificialartificial’’ flood defence: flood defence: this creates various rivalries between water management this creates various rivalries between water management and land use planningand land use planning

•• The European Union prepared and adopted the Water The European Union prepared and adopted the Water Framework Directive, which requires huge efforts from Framework Directive, which requires huge efforts from countries to meet ecological goals in 2015countries to meet ecological goals in 2015

ConclusionConclusion: : levelslevels and and scalesscales

•• What is needed? What is needed? –– Coherent cooperation at water basin scale between various Coherent cooperation at water basin scale between various

administrative levels involved.administrative levels involved.•• What is found?What is found?

–– Netherlands and France developed an effective structure for coNetherlands and France developed an effective structure for co--governance between central government and governance between central government and decentraldecentral water water authorities.authorities.

–– Belgium has also set such a structure, but it is just recently fBelgium has also set such a structure, but it is just recently functioning, unctioning, due too long institutional reform until 1993.due too long institutional reform until 1993.

–– Spain suffered until recently from incoherent state interventionSpain suffered until recently from incoherent state interventions in the s in the autonomous regions.autonomous regions.

–– Italy is weak on providing integration from the central level anItaly is weak on providing integration from the central level and deals d deals with three different integration principles.with three different integration principles.

–– Switzerland is struggling with incoherence between federal attemSwitzerland is struggling with incoherence between federal attempts to pts to integrate and a strong cantonal autonomy, on which the integrate and a strong cantonal autonomy, on which the implementation of federal policy depends completely.implementation of federal policy depends completely.

ConclusionConclusion: : actorsactors and and networksnetworks

•• What is needed?What is needed?–– Institutionalized forms of participation, accessible for Institutionalized forms of participation, accessible for

new users.new users.•• What is found?What is found?

–– We see in all countries an increased participation of We see in all countries an increased participation of new users, environmental NGOs, and the general new users, environmental NGOs, and the general public in water issues.public in water issues.

–– The degree to which participation is institutionalized The degree to which participation is institutionalized varies a great deal among countries.varies a great deal among countries.

–– Participation is more institutionalized in the Participation is more institutionalized in the Netherlands, France and Switzerland than it is in Netherlands, France and Switzerland than it is in Belgium, Spain and Italy.Belgium, Spain and Italy.

ConclusionConclusion: : perspectivesperspectives and and objectivesobjectives

•• What is needed? What is needed? –– A wide, integrating scope taking into account all A wide, integrating scope taking into account all

relevant water values.relevant water values.

•• What is found?What is found?–– All countries are rather similar in the evolution of their All countries are rather similar in the evolution of their

scope.scope.–– The effectiveness of this ambition very much depends The effectiveness of this ambition very much depends

on the availability of instruments and resources for on the availability of instruments and resources for implementation, and they vary a lot among the implementation, and they vary a lot among the countries we studies.countries we studies.

ConclusionConclusion: : strategiesstrategies and and instrumentsinstruments

•• What is needed? What is needed? –– Streamlined legislation based on an integral water approach.Streamlined legislation based on an integral water approach.

•• What is found?What is found?–– The Netherlands and France have adopted such streamlined The Netherlands and France have adopted such streamlined

legislation around 1990, considering the resource as an integrallegislation around 1990, considering the resource as an integralone (in terms of quantity, quality, surface and groundwater, as one (in terms of quantity, quality, surface and groundwater, as well as the ecological aspects of the water system).well as the ecological aspects of the water system).

–– Italy and Switzerland show attempts at integrated legislation: Italy and Switzerland show attempts at integrated legislation: although they have an integral appearance, they are incomplete.although they have an integral appearance, they are incomplete.

–– Belgium and Spain have not yet developed an integrated Belgium and Spain have not yet developed an integrated legislation.legislation.

ConclusionConclusion: : distributiondistribution of resourcesof resources

•• What is needed? What is needed? –– Financial: sufficient public expenditure and willingness to inveFinancial: sufficient public expenditure and willingness to invest; getting st; getting

the prices right in terms of the prices right in terms of ‘‘polluter payspolluter pays’’ and and ‘‘full cost recoveryfull cost recovery’’..–– Property rights: strong public domain able to restrict private pProperty rights: strong public domain able to restrict private property roperty

rights and concessions if needed for the public interest.rights and concessions if needed for the public interest.•• What is found?What is found?

–– We noticed that the Netherlands, France and Switzerland have a mWe noticed that the Netherlands, France and Switzerland have a much uch greater public expenditure and have more strictly applied the fugreater public expenditure and have more strictly applied the full cost ll cost recovery principle than Belgium, Spain and Italy.recovery principle than Belgium, Spain and Italy.

–– With respect to surface water pollution: the Netherlands has appWith respect to surface water pollution: the Netherlands has applied the lied the full cost recovery from 1970 on, France raised charges considerafull cost recovery from 1970 on, France raised charges considerably in bly in 1992; Switzerland on the other hand has lately adopted and appli1992; Switzerland on the other hand has lately adopted and applied the ed the principle (in 1997), but from the beginning it has invested a loprinciple (in 1997), but from the beginning it has invested a lot in waste t in waste water treatment with contributions form the general budgets.water treatment with contributions form the general budgets.

ConclusionConclusion: : distributiondistribution of resourcesof resources

•• What is found with respect to property rights?What is found with respect to property rights?–– In all six countries we noticed in general a strongly evolving pIn all six countries we noticed in general a strongly evolving public domain in ublic domain in

terms of communalization of water ownership and use rights.terms of communalization of water ownership and use rights.–– Since the mid 1980s most countries have declared water to be pubSince the mid 1980s most countries have declared water to be publicly owned or licly owned or

by no one owned (by no one owned (resres nullius).nullius).–– In case of Spain there have been several attempts to eliminate pIn case of Spain there have been several attempts to eliminate private property rivate property

rights and restrict the term of use concessions. Because of the rights and restrict the term of use concessions. Because of the limited effect, limited effect, Spain has introduced (in 1999) trading of water concessions to aSpain has introduced (in 1999) trading of water concessions to achieve more chieve more efficiency..efficiency..

–– In Switzerland water use concessions for hydropower generation hIn Switzerland water use concessions for hydropower generation have been ave been granted for very long periods of up to 99 years. Many of them cagranted for very long periods of up to 99 years. Many of them can only be n only be amended voluntarily.amended voluntarily.

–– The Netherlands, Belgium, France and Italy have a stronger publiThe Netherlands, Belgium, France and Italy have a stronger public domain.c domain.–– However, all countries shy away from affecting water use rights However, all countries shy away from affecting water use rights that cause that cause

diffuse water pollution or water depletion. They do not want to diffuse water pollution or water depletion. They do not want to hinder economic hinder economic activities (like agriculture) in the water uses they ask for.activities (like agriculture) in the water uses they ask for.

–– All countries have problems with getting grip on land use rightsAll countries have problems with getting grip on land use rights in floodplains in floodplains that need to be recovered for preventive flood defence.that need to be recovered for preventive flood defence.

Important institutional conditions for Important institutional conditions for effective water managementeffective water management

•• Decentralized water authorities should be provided Decentralized water authorities should be provided with sufficient resources and autonomy, but be with sufficient resources and autonomy, but be embedded in a centralized structureembedded in a centralized structure

•• Cost recovery among beneficiaries on basis of profit Cost recovery among beneficiaries on basis of profit principle helps to facilitate regional water authorities principle helps to facilitate regional water authorities and to create participatory involvementand to create participatory involvement

•• Development of participatory involvement will be more Development of participatory involvement will be more difficult as long as water management is funded with difficult as long as water management is funded with contributions from the general state budgetcontributions from the general state budget