Title page

Contents

Abstract 4

Résumé 4

Acknowledgements 5

Acronyms and abbreviations 6

Executive Summary 9

1. Background 10

1.1. Proposed discussion questions 11

2. Polluter Pays principle: state of play 12

2.1. The Polluter Pays principle: a concept evolving over time 12

2.2. Economic instruments to address pollution on water bodies and the application of the PPP in the WFD 15

2.3. Application of the Polluter Pays principle in Member States 16

2.4. Disproportionate costs 20

3. The Polluter Pays principle under the WFD: coherence with other policy considerations 23

3.1. The Polluter Pays principle vis-à-vis policies that potentially affect water quality 23

3.2. How the Polluter Pays principle fits into the new context regarding water pollution control 25

3.3. Extended producer responsibility 28

3.4. Mitigation hierarchy 30

4. The practical limitations of the Polluter Pays principle: Diffuse pollution 32

4.1. Issues with economic instruments to recover the costs of diffuse water pollution 34

4.2. Options to prevent and recover the costs of diffuse water pollution from the polluters 35

5. The practical limitations of the Polluter Pays principle: legacy pollution 41

5.1. Issues with legacy pollution 41

5.2. Issues with corporate financial security 42

5.3. Options in line with Polluter Pays principle for legacy pollution 44

Annex A. Water Framework Directive and its daughter Directives 48

References 50

Table 2.1. Selected economic instruments in the context of the WFD 16

Table 2.2. Instruments applying the Polluter Pays principle currently in place in EU MS 16

Table 2.3. Allocation of revenues from water pollution charges 19

Boxes

Box 2.1. Setting the boundaries of the PPP: a legal perspective 14

Box 2.2. Taxes on nitrates and/or pesticides 17

Box 2.3. Tradable phosphate right system in the Netherlands 18

Box 3.1. Key pressure on European waters 23

Box 3.2. Setting acceptable levels of water risks 27

Box 3.3. Towards an EPR scheme to recover costs of advanced wastewater treatment in Germany 29

Box 3.4. The Netherlands' "Chain approach" to pharmaceutical residues in water 31

Box 4.1. Tackling diffuse pollution from agriculture, lessons from Scotland 39

Box 5.1. Extend liability to directors and officers: lessons from Canada 44

Box 5.2. Funds for ELD liabilities: lessons from Spain 45