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www.ecologic.eu Water Quality Indicators in the ‘Beyond GDP’ Process Lucas Porsch Ecologic Institute www.ecologic.eu Overview The Beyond GDP Agenda and Water quality indicators Current projects of the Ecologic Institute IN STREAM (Integration of Mainstream Economic Indicators with Sustainable Development Objectives) The Environmental Pressures Index Concluding remarks 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 2 www.ecologic.eu Beyond GDP I GDP still the most popular indicator for economic (and also social) welfare of nations Long standing criticism on GDP as a welfare indicator Recently increased focus on environmental sustainability The financial crisis has given renewed impetus to the discussion Stiglitz/Sen/Fitoussi commission of the French government Beyond GDP conference and communication by the European Commission 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 3 www.ecologic.eu Beyond GDP II Key deficits of GDP and other mainstream indicators in respect to water quality Net versus gross: GDP is a flow indicator which does not reflect any changes in stock which incentivises short term thinking Quality improvements: The valuation of quality improvements for any goods and services is difficult and affects the overall estimates dramatically Valuation of health: Any improvement in health is not (or only on the basis of its health care costs) included in GDP 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 4 www.ecologic.eu Beyond GDP III The ecologic institute has been involved in the Beyond GDP process for a while Organising the Beyond GDP conference for the European Commission in 2009 Involved in several FP6 and FP7 projects on the Beyond GDP agenda (EXIOPOL, OPEN:EU, IN STREAM) Currently conducting data work for DG Environment on the Environmental Pressures Index 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 5 www.ecologic.eu IN STREAM I IN STREAM: FP 7 Project - 09/2008 until 09/2011 – www.in-stream.eu “Integration of Mainstream Economic Indicators with Sustainable Development Objectives” 8 Partners – 5 member states Key objectives Evaluate key existing indicators and indicator efforts Evaluate institutional needs and opportunities Improve quantitative models linking indicators Assess the costs of reaching sustainability targets Recommend composite indicators and implementation 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch www.ecologic.eu IN STREAM II: Policy needs for indicators Objective Setting: •Need for availability over time and internationally to allow comparisons Impact Assessment: •Need to reflect policy specific causalities Problem definition: •Credibility with the public for communication 16 June 2011 Policy Monitoring: •Need for timely data availability to match short policy cycles Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch www.ecologic.eu IN STREAM III: Key Research conducted relevant to the workshop Qualitative analysis of indicators with RACER and SWOT Valuation of health impacts of emission reductions (University of Stuttgart) Analysis of health impacts of air emissions for different illnesses Valuation of impact of illnesses using treatment costs and DALY (Disability Adjusted Life Years) Valuation of biodiversity impacts of emission reductions (University of Stuttgart) Analysis of impact of emissions on biodiversity Valuation of biodiversity impacts on the basis of recovery or replacement costs (TEEB) Potential methodology to value quality improvements in water and to aggregate water quality indicators 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch www.ecologic.eu Environmental Pressure Index I Environmental Pressures Index is aiming to create a headline indicator for environmental pressures set up by DG Environment Index should include all environmental pressures of human activity Value added of the index and key challenges One indicator to publish alongside GDP to signify the environmental costs of economic growth Variability of data quality and timing – Problem of data gaps Aggregation and weighting of environmental pressures within and throughout categories 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 9 www.ecologic.eu Environmental Pressure Index II Data work for the indicator on three examples Pollution by nutrients to inland water: Measures the pressures on aquatic ecosystems (N, P, BOD5) Aquaculture pollution to marine waters: Measures the pressures arising from aquaculture production to marine waters Riverine emissions to marine waters: Measures the emissions of N, P, Pb, Cd and Hg to marine waters (kt/a) 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 10 www.ecologic.eu Environmental Pressure Index III: Pollution by nutrients to inland waters Data sources: EEA Waterbase data Eurostat nutrient balance data (under consideration – pending) Rejected data sources: FATE and Impact of Pollutants in Terrestrial and Aquatic Ecosystems – incomplete temporal coverage & modeling assumptions UNEP GEMStat – incomplete geographical and temporal coverage RIVM (NL) Critical loads databases and maps – no updated modeling results 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 11 www.ecologic.eu Environmental Pressure Index IV: Pollution by nutrients to inland waters Key challenges Temporal and geographical data gaps Aggregation: Arithmetic mean of pollutants vs % of monitoring stations exceeding threshold (Definition of EU- thresholds) Composite indicator of N & P vs single indicators (nutrient “equivalents” following Adriaanse (1993)) 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 12 www.ecologic.eu Environmental Pressure Index V: Aquaculture pollution to marine waters Data sources: Aquaculture: effluent water quality from finfish farms (EEA: SEBI 022) Aquaculture production (EEA: CSI 033) Key challenges: SEBI 022 is still under development by the EEA, may have to resort to CSI 033 as a proxy Appropriate scaling factor: “total marine aquaculture per km coastline”: reflects pressure well, but does not consider share of impact by non-marine based countries which consume aquaculture products 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 13 www.ecologic.eu Environmental Pressure Index VI: Emissions to marine waters Data sources: HELCOM: Assessment Reports on Waterborne inputs of heavy metals, N and P to the Baltic Sea OSPAR: Riverine Inputs and Direct Discharges (RID) Blacksea Commission: pending Rejected data sources: Nutrients in transitional, coastal and marine waters (EEA: CSI 021) – no annual data Loads of hazardous substances to coastal waters (EEA: WHS 007) – no annual data 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 14 www.ecologic.eu Environmental Pressure Index VII: Emissions to Marine Waters Key challenges: Geographical data gaps: Mediterranen Sea Temporal data gaps: not all signatories to the HELCOM and OSPAR conventions cover the period 1995-2008 Data gap filling Composite indicator or single indicators? Composite indicator by e.g. following Adriaanse‘s (1993) approach of heavy metal and nutrient equivalents 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 15 www.ecologic.eu Conclusions Challenging inclusion of water quality indicators into composite indices Change to composite indicators needed (net indicators and quality adjustments) Varied data quality of indicators Aggregation as the key challenge Aggregation within categories and over categories Weighting and treatment of categories with missing data Valuation of different pollutions and other quality criteria needed to robustly aggregate the different quality criteria 16 June 2011 Copenhagen: Water Resource Efficiency Workshop – Lucas Porsch 16