VOLUNTARY NUTRIENT TRADING FOR THE BALTIC SEA

Marjukka Porvari, John Nurminen Foundation

Recycle Nutrients for Clear Waters - Forum for Action Helsinki, Finland 20 April 2016

JNF PROJECTS 2005-2015

NEFCO expert report, 2008 Current legislation will fall short

of achieving the Ecological Objective with regard to eutrophication, defined in the Baltic Sea Action Plan.

High variability in abatement costs across the Baltic Sea States suggests that there are large efficiency gains to be obtained from international cooperation in combating eutrophication.

Nutrient trading may provide a feasible instrument in realising some of this potential.

Why nutrient trading?

NEFCO report

NutriTrade

2008 2016

NutriTrade implements the idea of nutrient trading presented by NEFCO in 2008

Source: NEFCO 2008

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Source: SYKE/ The Finnish Environment 632

SYKE MODELLING IN 2005: REDUCTION OF BLUE-GREEN

ALGAE IN THE BALTIC SEA 5 YEARS AFTER ACTION*

Reduction %

*ACTION= ENHANCED P REMOVAL AT THREE LARGEST WWTPS IN ST PETERSBURG SOURCE: SYKE AND YVA OY

Compliance (Polluter Pays) vs. voluntary schemes: Case Belarus

- No nutrient reduction obligations due to EU or HELCOM (national regulations less stringent)

- No Baltic Sea coastline - Low GDP and income

level - Benefits from nutrient

reductions implemented in the country mostly to Baltic Sea coastal countries (e.g. Sweden)

What is emissions trading?

EU ETS

JI, CDM

Water quality trading USA, CAN, AUS, NZ

Compliance schemes

Carbon offsetting for a product / service / plant /

event

Voluntary schemes

Evaluation of nutrient footprint

Realisation of own emission reduction measures

Decision to neutralize the

remaining emissions

The investment funds an offset

project

The offset project reduces nutrient

emissions

Quantified emission reductions become

offsets

What is nutrient offsetting?

Project NutriTrade

Flexible mechanisms in the Baltic Sea protection policy

1. Increasing efficiency of Baltic Sea protection

2. Bringing additional resources to water protection

3. Fostering new water protection innovations

4. Supporting local and Baltic Sea region wide water protection initiatives aiming at tangible nutrient reductions

NutriTrade aims at…

Lastumäki & Hirvonen

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Lessons learned from existing water quality trading schemes and flexible instruments in climate policy

Analysing possibilities for applying nutrient trading in governmental policies in Finland and Sweden

Current examples:

Sweden: CEASAR (Certifikatssystem för Effektiv Allokering av Skyldigheter Anpassade till Retention) - nitrogen trading between municipal waste water treatment plants

Finland: compensating additional nutrient discharges due to fish farming by fishing Baltic herring for fish feed

Roadmap for using flexible mechanisms in the Baltic Sea region

Developing new environmental policy instruments for the Baltic Sea and Europe

Starting in 2016

Farmers, mussel farmers, fishermen, industrial companies, WWTPs, associations, etc.: Creation of nutrient credits

Technology and service providers: Sharing of information

Media, general public, other projects: Awareness raising, activation of participation

Voluntary financiers: Investments in emissions reduction projects

Policy makers, research community: Policy development

Participation opportunities

http://nutritradebaltic.eu/

More information