On behalf of the European Environment Agency (EEA), Ecologic and Stefan Speck jointly support two projects on the 'Analysis of national waste policies being implemented in the context of landfill and incineration directives' and on the 'use of economic instruments in policies addressing resource use'. Both of these projects build on precursor studies by the EEA which have assessed ex-post the effectiveness of waste water policies and the effectiveness of packaging waste management systems. Ecologic and Stefan Speck will contribute advice in the area of economic instruments and ex-post cost effectiveness methodologies. This project is conducted under the framework contract on European Environmental Economic Activities (3EA).

The Impact of Climate Change on the Indigenous Peoples of the Arctic was the theme of a an Expert Roundtable with Representatives of Circumpolar Indigenous Peoples moderated by R. Andreas Kraemer in the context of opening the new Canadian Embassy in Berlin. It was convened jointly by the Embassy of Canada in Berlin, in partnership with the German Ministry of Foreign Affairs, Ecologic, and the Indigenous Peoples’ Secretariat of the Arctic Council on 18 May 2005.

The project objective is to provide expert policy advice to the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety in the field of international climate policy. The topic areas of Ecologic are the institutional design and organisation of the international negotiation process in the context of the UN Framework Convention on Climate Change and its Kyoto Protocol, as well as the further elaboration of the compliance system of the Kyoto Protocol. Furthermore the project analyse various questions relating to the future development of the international climate change regime beyond the year 2012.

Export Credit Agencies like the German EulerHermes AG have often been criticized for their restrictive information disclosure and the lack of participation. Through the recently agreed OECD Common Approaches, a trend towards better and earlier information disclosure has been established; however, the actual implementation of this agreement remains to be seen. Benjamin Görlach presented recent developments in a workshop organised by the non-governmental organisation World Economy, Ecology and Development (WEED).

The compliance cost that environmental regulation imposes on businesses plays a central role in the debate on economic competitiveness and environmental sustainability. However, on closer inspection these costs often turn out to be lower than originally anticipated. As part of a a European consortium, Ecologic reviewed ex-post analyses of the costs imposed on business because of European environmental legislation, and compared these to ex-ante estimates. The project reports conclude that some ex-ante overestimation is inevitable, and that the new EU regulatory flexibility could make accurate predictions even more difficult. But it nevertheless proposes a series of ways in which accuracy could be improved.

Between 1998 and 2004, Europe suffered more than 100 major flooding events, including the catastrophic floods along the Danube and Elbe rivers in the summer of 2002. In the wake of these events, the European Commission has embarked on the development of a European policy on flood risk management, resulting in a proposal for a floods Directive that was tabled in January 2006. This paper by Thomas Dworak and Benjamin Görlach tracks the development of the European approach to flood risk management and discusses future options for a European policy on floods.

Floods have caused substantial economic damage in recent years in Germany and elsewhere in Europe. The costs of the 2002 Elbe flood alone exceeded 10 billion Euro. Thirty experts from science and public administration gathered at the Federal Environment Agency in Berlin on 10 May 2005 to discuss the role of economic instruments for flood management and the economic assessment of flood management strategies. In his lecture, Benjamin Görlach presented some selected examples of flood management in Europe and discussed the use of economic appraisal tools in the different countries.

Policy makers are increasingly in need of accurate and timely information in order to meet reporting requirements linked to environmental legislation. This paper explores the extent to which Earth Observation (EO) based services, addressed by the joint ESA and EC initiative "Global Monitoring for Environment and Security (GMES)", can contribute to meeting the special reporting requirements of the major European Union water policy, namely the Water Framework Directive (WFD).

European Commission plans indicate that the water supply should no longer be subject to municipal self-administration, but instead to European competition rules, and maybe even to a mandatory tendering procedure. Such a development would have far-reaching effects on the German drinking water supply, which is characterised by strong communal influence.

A crucial factor for improving water management is the use of economic approaches and instruments. Eduard Interwies, Senior Fellow at Ecologic, illustrated the possible use of European experiences in the Mediterranean region.

The EC Water Framework Directive mandates that good ecological status should be reached in all water bodies in Europe by 2015. To this end, according to Article 11 of the Directive, programmes of measures shall be established for all river basins. The selection and combination of measures within these programmes should also take account of cost-effectiveness considerations. In an article for the Journal gwf Wasser / Abwasser, Benjamin Görlach, Nicole Kranz and Eduard Interwies present a possible methodology for this selection process, which was developed by Ecologic for the German Federal Environment Agency.

With the European Neighbourhood Policy (ENP), the European Union aims to redefine the relationships between itself and the new neighbours it acquired in the EU Enlargement of 2004. Economic integration remains at the heart of the ENP, but increased co-operation in the areas of environmental and energy policy is addressed as well. This Ecologic Newsletter by Sascha Müller-Kraenner examines this important issue and also surveys questions that the EU and its new neighbours will need to address together.

In his article in the "Zeitschrift für Umweltrecht," Nils Meyer-Ohlendorf (Ecologic Institute) analyzes what consequences the Treaty establishing a Constitution for Europe would have for environmental policy. This treaty was signed in 2004 but did not come into force as it was not ratified. The author focuses on the institutional architecture of the European Union, which would undergo some changes due to the treaty.

One of the key elements of the latest 2003 reform of the Common Agricultural Policy (CAP) is compulsory compliance with environmental, food safety, animal welfare, and animal and plant health standards. Additionally it is required that farmers maintain their farmland in good agricultural and environmental condition as a condition for receiving direct payments. The project will focus on the investigation of the value-added resulting from introducing cross-compliance as a tool to improve compliance with existing standards; and the investigation of the cost implications and competition effects of compliance to EU standards on the world market.