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PES in Practice: SCaMP
Why are we interested?
Who pays?



             Clean Water


        Organisational objectives
                                    Beneficiary Pays

      Environmental improvements
                                    Society Pays

        Legislative requirements
                                    Polluter Pays


            Polluted Water
Why are we interested?
SCaMP Funding




UU Driver      Support                         Water
               (DWI, EA,           Ofwat
(WQ, SSSI)
               NE, RSPB)                     Customers
                                                              SCaMP
                                                              Project
     Biodiversity          Natural
       Targets             England         Agri-Environment             Multiple
                                            Revenue grants              Benefits
     Woodland                                                 Tenant
                       Forestry
     Creation
                      Commission                              Farmer
      Targets

                                           Agri-Environment
    Organisation       3rd   Parties        Capital grants
       drivers             (NT, MftF)
What did we deliver?




                        Quiet Shepherd 2009




  Quiet Shepherd 2007
What did we deliver?




                       Ashway Gap 2009




  Ashway Gap 2006
Benefits valuation
Longdendale case study

                               1,000,000
                                           Carbon benefits
                                900,000
                                           Biodiversity benefits

                                800,000    Recreation benefits
                                           Water treatment OPEX savings
                                700,000
   Value of Benefit (£/year)




                                600,000


                                500,000


                                400,000


                                300,000


                                200,000


                                100,000


                                      0



                                                                          Year
Present value benefits and costs
Longdendale case study


               Benefits         Present Value
         Water quality                      £269 K
                                                       Net present
         Non-use Biodiversity             £3,202 K
                                                       value (NPV)
         Recreation                       £1,439 K
                                                       of £7.4M,
         Climate regulation               £8,328 K     but only if
         TOTAL                           £13,238 K     the ‘wider’
                 Costs          Present Value          benefits are
         UU funding                       £2,570 K     taken into
         External funding                 £3,253 K     account
         TOTAL                            £5,823 K
                 NPV                      £7,414 K
              B/C Ratio                         2.27
Lessons learnt and challenges for
WFD


•   There is still a lot to do on land management and understanding the benefits
•   Sometimes you have to try things in order to get the benefits you want
•   Carbon as a major benefit needs to be recognised and rewarded
•   Not all degraded land will deliver benefits to water companies - shared
    responsibilities
•   Identify your stakeholders and take them with you
     – SCaMP projects were developed with input from the RSPB and Natural
       England as well as many other local stakeholder groups
     – Regulators will also be vital in WFD
•   We need time to work out what works
Thank you for listening

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Janine White

  • 2. Why are we interested?
  • 3. Who pays? Clean Water Organisational objectives Beneficiary Pays Environmental improvements Society Pays Legislative requirements Polluter Pays Polluted Water
  • 4. Why are we interested?
  • 5. SCaMP Funding UU Driver Support Water (DWI, EA, Ofwat (WQ, SSSI) NE, RSPB) Customers SCaMP Project Biodiversity Natural Targets England Agri-Environment Multiple Revenue grants Benefits Woodland Tenant Forestry Creation Commission Farmer Targets Agri-Environment Organisation 3rd Parties Capital grants drivers (NT, MftF)
  • 6. What did we deliver? Quiet Shepherd 2009 Quiet Shepherd 2007
  • 7. What did we deliver? Ashway Gap 2009 Ashway Gap 2006
  • 8. Benefits valuation Longdendale case study 1,000,000 Carbon benefits 900,000 Biodiversity benefits 800,000 Recreation benefits Water treatment OPEX savings 700,000 Value of Benefit (£/year) 600,000 500,000 400,000 300,000 200,000 100,000 0 Year
  • 9. Present value benefits and costs Longdendale case study Benefits Present Value Water quality £269 K Net present Non-use Biodiversity £3,202 K value (NPV) Recreation £1,439 K of £7.4M, Climate regulation £8,328 K but only if TOTAL £13,238 K the ‘wider’ Costs Present Value benefits are UU funding £2,570 K taken into External funding £3,253 K account TOTAL £5,823 K NPV £7,414 K B/C Ratio 2.27
  • 10. Lessons learnt and challenges for WFD • There is still a lot to do on land management and understanding the benefits • Sometimes you have to try things in order to get the benefits you want • Carbon as a major benefit needs to be recognised and rewarded • Not all degraded land will deliver benefits to water companies - shared responsibilities • Identify your stakeholders and take them with you – SCaMP projects were developed with input from the RSPB and Natural England as well as many other local stakeholder groups – Regulators will also be vital in WFD • We need time to work out what works
  • 11. Thank you for listening