Study on Pollution Trading & Economic Instruments for Nutrient Reduction

Final Reports - Phase 1 & 2

In the study on Financing Pollution Reduction Measures in the DRB - Present Situation and Suggestions for New Instruments (Danube Pollution Reduction Programme 1997-99), the implementation of a system of nutrient discharge quotas and auctions has been proposed. Considering the diversified economic conditions of the riparian countries and the particular relation of the Danube countries to the Black Sea, new approaches, in particular economic instruments, could be necessary to achieve efficiency in nutrient reduction reforms. 

Whenever the principle of "pollutant auctions" is presently not compatible with the EU water quality guidelines, which are based on the emission principle, interesting and innovative approaches could be developed and possibly introduced in the forthcoming EU policies to solve the nutrient problem. Further, the results would also contribute to support a larger GEF need for Targeted Research in developing economic instruments for nutrient reduction.

This component should therefore assess the viability and feasibility of "pollution trading" concept in the DRB countries and initiate a broad discussion with all stakeholders on alternative economic concepts for pollution control.

For this purpose, Danube Study on Pollution Trading and Corresponding Economic Instruments for Nutrient Reduction was prepared, reviewing international experience in relation to pollution trading and assessing the feasibility of applying such concepts to the nutrient discharges to the Danube River System, which is largely responsible for the eutrophication problems of the Northwestern  part of the Black Sea.