WORKING TOGETHER TO INSPIRE SUSTAINABLE SOLUTIONS
ECONOMIC AND INSTITUTIONAL ANALYSIS OF THE FEASIBILITY OF PAYMENTS FOR ECOSYSTEM SERVICES IN UKRAINE Author: Oleg Rubel Editor: Maya Todorova Translation: Mid Yokshire Chamber of Commerce and Industry - Bulgaria Design concept: Boyan Petkov, Ina Kalcheva Printed at Geosoft EOOD
Cover photo: ©Anton Vorauer / WWF-Canon © Text 2012 WWF Danube-Carpathian Programme All rights reserved
This study was prepared as part of THE DANUBE PES PROJECT: PROMOTING PAYMENTS FOR ECOSYSTEM SERVICES AND RELATED SUSTAINABLE FINANCING SCHEMES IN THE DANUBE BASIN.
This project promotes and supports land managers who help us sustain the benefi ts that we all get from nature. The project is implemented by the WWF Danube-Carpathian Programme with the fi nancial support of the GEF through UNEP and the European Commission.
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Phone /fax: +359/2 981 66 40 Fax: +40 21 317 49 97 CONTENT
INTRODUCTION 01 ACKNOWLEDGMENTS 02 WATER POLICY IN UKRAINE 03 INTEGRATED WATER RESOURCES MANAGEMENT IN UKRAINE 07 INTEGRATED WATER RESOURCE MANAGEMENT IN THE UKRAINIAN PART OF THE DANUBE RIVER BASIN 09 WATER USE IN UKRAINE 10 WATER USE IN THE ODESSA REGION 12 UKRAINIAN AGRICULTURAL POLICY AND WATER USE 13 IRRIGATION ON THE SCALE OF UKRAINE 15 IRRIGATION IN THE ODESSA DISTRICT 16 ECONOMY OF WATER CONSUMPTION PRICE 18 SPECIAL USE BY PRIMARY WATER USERS 19 WATER CHARGES FOR SECONDARY WATER USERS 24 FINANCIAL MECHANISM OF WATER USE AND WATER RESOURCES PROTECTION 25 FINANCIAL MECHANISMS IN OTHER NATURE MANAGEMENT SECTORS 27 WHAT IS NECESSARY TO BE DONE TO IMPROVE THE ECONOMIC MECHANISMS OF NATURE MANAGEMENT? 28 REQUIREMENTS FOR THE INTRODUCTION OF MECHANISMS OF PAYMENTS FOR ECOSYSTEM SERVICES 31 POTENTIAL PES SCHEMES 32 Reedbed management 32 Erosion control measures 32 Water quality and water resources management 33 Wetlands restoration and ecotourism 33 Implementation of PES schemes in other regions of Ukraine 34 CONCLUSIONS 35 Appendix 1: MANAGEMENT OF REEDBED IN THE DANUBE DELTA REGION – STENSOVSKO- ZHEBRIYANSKY FLOODPLAIN 36 Appendix 2: RESTORATION OF FOREST BELTS AND OTHER ANTI EROSION ACTIONS IN REGION OF THE LOWER DANUBE 38 Appendix 3: RESTORATION OF RESOURCES IN THE UNIQUE AQUATICS OF THE DANUBE RIVER AND THE NORTH-WESTERN PART OF THE BLACK SEA 40 Appendix 4: RENATURALIZATION OF POLDER IN THE AREA BETWEEN THE LAKES KARTAL AND KUGURLUY 42 Appendix 5: RENATURALIZATION OF THE SASYK ESTUARY 44 Appendix 6: BOGATAYA FARM 47 Appendix 7: INTRODUCTION OF PES MECHANISM IN THE KALMIUS RIVER BASIN 49 Appendix 8: THE SCHEME OF IRRIGATIN G NETWORKS IN THE ODESSA OBLAST 51 INTRODUCTION
Recently, innovative fi nancing June 2006, examined the concept of mechanisms have been recognized payment for ecosystem services in as essentials for addressing terms of integrated water resources some of the identifi ed failures in management, and proposed to environmental management, in the United Nations Economic particular, Payments for Ecosystem Commission for Europe a Draft Services (PES). In a situation of high Code of Conduct on Payments for environmental concerns and limited Ecosystem Services in Integrated fi nancial resources, PES can generate Water Resources Management. additional alternative resources, allocate funds to environmentally “Ecosystem services” literary mean friendly management practices and the benefi ts that people get from sustainable production patterns, nature. According to the Millennium create incentives for investments, Ecosystem Assessment (2000), all and increase the involvement of benefi ts from nature are classifi ed into the private sector in environmental 4 groups of ecosystem services. These protection. include:
The second meeting of the Working • Provisioning services, being the Group on Integrated Water Resources capacity of ecosystems to provide Management, held in Geneva in food, water supply, wood; © Maxim Yakovlev, Danube Biosphere Reserve Danube Yakovlev, © Maxim The Danube Biosphere Reserve – the only place in Europe where land grows due to sediments.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 1 • Regulating services, being the Sustained Financing Schemes in the capacity of ecosystems to regulate Danube Basin”, which is implemented the climate, fl oods, diseases, wastes by WWF with the fi nancial support and quality of water; of UNEP through GEF. The report covers: • Cultural services - recreational, aesthetic and spiritual needs; • Analysis of water policy in Ukraine - implementation of integrated water • Supporting services, such as soil management in Ukraine and the formation, photosynthesis and Ukrainian Danube Basin; nutrients cycle. • Structure and dynamics of water The term “investments into ecosystem consumption, including irrigation; services” is used in the current analysis to describe the fi nancial and • Financial mechanisms related to technical investments into restoration, water protection and consumption; preservation, protection of ecosystems, which are important for • Measures necessary for the the provision of ecosystem services. introduction and improvement of economic mechanisms and The report was developed within implementation of PES; the project “Promoting Payments for Ecosystem Services and Related • Examples of potential PES schemes.
ACKNOWLEDGMENTS
The author is grateful to all experts and water users who helped to prepare the analysis:
Olga Genova, Aleksandr Voloshkevich, Natalia Goriup, Mikhail Zmud, Valentina Lavrenova, Oleg Skaraev, Natalya Sekova, Valery Babchuk, Larisa Kupinens, Viktor Golubchenko, Natalya Zakorchevna.
Special gratitude of the author to Maria Tarasova.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 2 WATER POLICY IN UKRAINE
Ukraine belongs to European of appropriate water management countries with poor local water projects, which can dramatically alter resources, which are distributed very the functional orientation of the water unevenly. The water use effi ciency is use in general and in its different extremely low, and the water intensity sectors. of GDP (water consumed per unit of gross domestic product) is high The norms of the environmental law, enough 1. adopted by the Law of Ukraine “On Environmental Protection” 2 are The reform of the water management the basis of the legal relations in the system in Ukraine remains a major fi eld of water resources management subject for discussion by authorities and protection. The Water Code of and scientists. The practical Ukraine3, approved by the Resolution implementation of river basin of the Verkhovna Rada of Ukraine management based on integrity, on June 6, 1995, № 214/95-VR is interrelationship and consistency the basic document regulating the with economic development, has been legal relations in the fi eld of water under discussion for a long time. use. According to its provisions, the tasks of water legislation of Ukraine The issues of basin management are to regulate legal relationships autonomy related to the priorities in order to ensure the conservation, of carrying out water management science-based and rational water and protection business; attracting use for the needs of the society investments for the implementation and the economy, water resources of promising innovative projects; recharge, protection of water from commercialization of public areas of pollution, contamination and water management remain pending. depletion, prevention of harmful Principles of interaction between effects of water and mitigation of basin management administration their consequences, improving the and relevant subsections of the status of water bodies and protection Ministry of Environment of Ukraine of the water use rights of enterprises, and other agencies also remain institutions, organizations and vague, which again creates the same individuals 4. Ukraine has ratifi ed regulatory vacuum for development several international conventions,
1 Which is also explained by underestimation of GDP of Ukraine because of high rate of shadow economy – up to 40-60% (see http://ekonomist.kiev.ua/economics/tenevaya-ekonomika-ukrainy.html) 2 http://zakon1.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=1264-12 3 http://zakon1.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=213%2F95-%E2%F0 4 Ibid
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 3 in particular, the Convention on and rules that prevent environment Transboundary Watercourses, deterioration as a result of negligent and declared intention to follow treatment, pollution or contamination the implementation of the Water of water bodies. It is implemented Framework Directive 2000/60/EC of by the local authorities which agree the European Union under the Action their management decisions with Plan “Ukraine - EU” approved by the the governmental agencies for Cabinet of Ministers of Ukraine № environmental protection, water 117 – p of 4/22/05 and number 36 - p resources monitoring, sanitary and of 2/12/05. epidemiologic security.
Depending on the type of economic Water legislation ensures the agents participating in the water use implementation of a wide range of process, the volume of operation and measures for water protection from the environmental impacts on water pollution, depletion, prevention of resources, two major groups of water the harmful effects of water and use can be identifi ed: general water elimination of the consequences of use by the general public on common disasters. base which is not related to generating any profi t and special water use by Special water use is a fence of water businesses and individuals. from water objects with application of constructions or technical devices, The management of the general water use of water for dump of polluting use on common base is limited to the substances in water objects, including establishment of sanitary inspection a fence of water and dump of polluting rules, which aim at consumers’ safety, substances with turnaround waters © Maxim Yakovlev, Danube Biosphere Reserve Yakovlev, © Maxim Fishing is an important mainstay for local communities.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 4 with application of channels 5 . of ministries, departments, enterprises, institutions and As to the department structure of organizations of this area): water management in Ukraine there Ministry of Regional Development, are: Construction and Communal Living of Ukraine - production • Legislative and representative and operating of environmental, bodies, local government bodies: investment, analytical and performing normative, fi scal, and information functions; the Ministry partly analytical and informational of Environment and Natural functions (the Verkhovna Rada of Resources of Ukraine – executing Ukraine, the Verkhovna Rada of the environmental, analytical and Autonomous Republic of Crimea, information, investment functions; Kyiv and Sevastopol City Councils, the State Agency for Water regional councils, rural, village, Resources of Ukraine – production town and district (in the cities) and operating of environmental, councils; analytical and information, investment functions (Fig. 1) 6. • Executive agencies: the Cabinet of Ministers, the Council of Ministers The State Agency for Water Resources of the Autonomous Republic of of Ukraine 7 is the central specially Crimea and public administration authorized body of the executive at regional and local levels power in the area of water use and (institutional, normative, fi scal protection, and reproduction of functions); water resources. The main tasks of the Agency are: developing and • Specially authorized bodies for implementing the state policy for the management, conservation water resources development and land and reproduction of water reclamation; surface water resources resources (integrated management, management, use and reproduction; implementation of the unifi ed operating the complex public water scientifi c-technical policy, facilities, off-farm irrigation and coordination of activities drainage systems.
5 Charges for special water use is imposed with the aim of encouraging rational water use and protection, and reproduction of water resources according to the Act of the Cabinet of Ministers of Ukraine №836 of 18.05.99 “On norms of charges for special water use and charges for water use for the needs of the hydropower engineering and the water transport”. 6 Tarasova M.L. Organizational and economic mechanism of water resources management in Ukraine – doctoral thesis speciality 08.00.03 – Economy and national economy management, Doneck- 2011-255 pp. 7 Clause on State Agency of water resources of Ukraine, approved by the decree of the President of Ukraine of April,13,2011 № 453/2011.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 5 Verhovna Rada Determination of public Cabinet of Ministers of of Ukraine policy and authorities Ukraine
Coordination of activities
Specially authorized bodies in the field of water resources management, use, protection and reproduction
Ministry of Regional Development, Construction and Communal Living
Ministry of Ecology and Natural Resources
State Agency of Water Resources
Public institutions whose authority is connected to water use
Ministry of Energy and Coal Mining Industry
Ukrainian State Service of Sea and River Transportation, Ministry of Infrastructure
State Agency of Fishing Management
Public institutions whose activities/ decisions indirectly influence the situation in field of water use Ministry of Industry
Public institutions with authoriries of inter-branch character Ministry of Social Policy
Ministry of Health Ministry of Agrarian Ministry of Economic Development and Trade Policy and Food Ministry of Finance
National Statistics Service
National Tax Service
Fig.1. State Agency on Investments and National Projects Structure of water Management resources management bodies in Ukraine State Agency of Energy Efficiency and Saving
State Agency of Ecological Investments
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 6 INTEGRATED WATER RESOURCES MANAGEMENT IN UKRAINE
The implementation of state policy design and introduction of fi nancial on sustainable development of the mechanism ensuring the direct link water economy is based on strategic between the payments for water use objectives including the restoration and the funding of water conservation and protection of water bodies, measures within the river basins. improvement of the technical and sanitary quality of water economy According to the State Agency of systems, rational water use. The Water Resources 9 , nine water basin Ukrainian Law on State Programme management agencies (WBMA) (the of Water Economy Development (№ Dnieper, the Dniester and Prut, the 2988 - SH from 1/17/02) proposes Danube, the Crimean, the Southern priority actions which in the future Bug, the Seversky Donets, the Western (until 2011) will contribute to the Bug, the Desnyanskiy, the Ros River) improvement of the environmental and fi ve basin councils (the Dniester, status of land reclamation systems, the Danube, the Southern Bug, the reaching conformity of the water Seversky Donets, the Western Bug) bodies environmental and resource should have been set up 10 by 2010. status with the basic standard requirements, which guarantee According to the “Priorities of the safety of the population and management reform and protection of achievement of the balance between water resources for the period 2006 – the levels of anthropogenic impacts 2015” the establishment of the basin on water bodies and their recharge management agencies for the Tisza, capacity 8. the Pripyat, the Azov Sea, the Upper and Lower Dnieper is planned11. The The need to implement the principles ecosystem approach to water use, of river basin management in Ukraine protection and restoration is the most is set in the Water Code of Ukraine. comprehensively laid down in the One of the development areas of National project on environmental the water basin management is the rehabilitation of the Dnepr river
8 Stashuk V.A. Ecological and economic basis of water resources basin management. –Dnipropetrovsk: Publishing House “Zoria”, 2006. – 480pp. 9 Site of the State Agency of Water Resources of Ukraine: http://www.scwm.gov.ua/ 10 According to the State Agency of Water Resources: http://www.scwm.gov.ua/index.php?option=com_content& task=view&id=2&Itemid=3. 11 Priority directions of reforming of water resources management and protection for the period 2006-2015. Ofi cial site of State Committee of Ukraine for Water Economy – 2009. December,27 http://www.scwm.gov.ua/index.php?option=com_content&task=view&id=195&Itemid
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 7 basin 12. What places constraints of water use (charging water users, on the introduction of river basin decisions about loans and grants) and management approach is imperfect research work (economic analysis of economic mechanisms, funded mainly water use within the basin). by the state and the absence of legal framework for the functioning of basin Ukrainian basin management agencies agencies according to The polluter work on the direct implementation pays and Self-fi nancing and self- of water supply (ensuring the needs suffi ciency principles. of the population and sectors of economy in water, implementation Comparative analysis of the of its inter-basins transfer schemes), managerial functions of the EU river and on the control of the quality of basin agencies and their Ukrainian surface water resources, compliance counterparts shows that they mostly with environmental laws, as well operate in different water use areas. as providing a number of fee-based EU river basin agencies work on services of organizational and standardization and fi nancial issues consultative nature 13. © Maxim Yakovlev, Danube Biosphere Reserve Yakovlev, © Maxim Up to 1000 local people are involved in harvesting reed.
12 Site «UNDP GEF Dnipro Basin Environment Programme». – 2009. – October, 22. http://www.dnipro-gef.net:80/fi rst_stage-ru/otchety-po-proektam 13 Tarasova M.L. Organisational and economic mechanism of water resources management in Ukraine – doctoral thesis speciality 08.00.03 – Economy and national economy management, Doneck - 2011-255pp
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 8 INTEGRATED WATER RESOURCE MANAGEMENT IN THE UKRAINIAN PART OF THE DANUBE RIVER BASIN
Reforming the system of water management in the Odessa oblast (region) started with the foundation of the Danube River Basin Water Resources Management Agency (WBMA) in Izmail, responsible for: water resources management of the Ukrainian part of the Danube River Basin within Reni, Bolgrad, Izmail and Kilia districts of the Odessa oblast; operation of the Danube water reservoirs Cahul, Karatal, Kugurluy- Ialpug, Katlabuh and Kilia; operation of hydraulic structures (high-water dams, locks, channels) (Fig. 2).
The Danube River Basin Council was founded in July 2008, in the Danube © Roman Sizo, Centre for Regional Studies region of Ukraine, with the support Fig. 2. Watersheds in Odessa District of TACIS project “Improving cross- border cooperation in integrated body, on the basis of the Danube management of water resources in the WBMA. Lower Danube Euroregion”. In the framework of the TACIS project Representatives of regional “Improving cross-border cooperation and district councils, district in integrated management of water administrations, public institutions resources in the Lower Danube (Basin Management, Department Euroregion” the Management Plan for of Ecology, hydro-meteorological the Ukrainian part of the basin of the observatory, sanitary and Lower Danube was developed 14. epidemiologic service), water users, scientifi c and public organizations The management of the river basin formed the Basin Board. The water resources can be implemented Secretariat of Basin Council was on the basis of basin agreement established as a permanent working which is the main legal instrument
14 Dyakov O. Transfer to basin principle of water resources management in the Odessa region: problems and perspectives/ O. Dyakov. - http://old.niss.gov.ua/Monitor/januar2009/18.htm
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 9 and consolidates the relationship of system of river basin management the contracting parties. As of today, have been made; favorable such agreements are concluded on the conditions for the implementation management of the Danube, as well as of the principles of integrated water the Dniester and Southern Bug rivers. resources management in the context of implementation of the Water In this way, in the Odessa region Framework Directive 200/60 have of the Ukrainian Danube region, been created. the fi rst steps towards creating a WATER USE IN UKRAINE
Over the past 20 years production Although the total water withdrawal volumes in Ukraine decreased. The in 2009 declined in comparison with decline was especially notable in 1980 by almost 20 billion m3, the high the early 90s.This was refl ected to level of transportation losses and the some extent in the volume of water high proportion of discharged waste withdrawal. water remains the manifestation of deterioration in water use 15 (Fig. 3). in million m.cubic % 40000 50 Losses at transportation, million in m. cubic Water fence of all million in m. cubic. 45 35000 Water removal, million in m. cubic Share of the dumped polluted waters, % 40 30000 35
25000 30
20000 25
20 15000 15 10000 10
5000 5
0 0 1980 1985 1990 1995 2000 2005 2010 years Fig. 3. Characteristics of water withdrawal and discharge in Ukraine
15 Khvesyk M. GolYan V Rationalization of Water Use in the Modern Civilized Measure: Strategic Choice of Dominant and Institutional Ordonnance Mykhaylo Khvesyk, Vasyl Gol Yan. — The Economist Ukr J. — №4. — 2011 — P.34-35 WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 10 In 2009, 14 478 million m3 of water crisis16. was withdrawn from natural sources. Compared to 2008, the total intake The country main water users decreased by 1 251 million m3, which remain the electric power companies, in turn could be linked to the fall communal and agricultural by 15% of Ukraine’s GDP under the companies, and metallurgy (Fig. 4). conditions of the global economic in million m.cubic 7000 The industry
Agriculture 6000 Housing and communal services 5000
4000
3000
2000
1000
0 2001 2002 2003 2004 2005 2006 2007 2008 years
Fig. 4. Dynamics of water use by the main sectors of the economy of Ukraine (excluding marine waters) 17 , 2001-2007, mil.m3
16 Economic crisis in Ukraine (2008-2009) URL: http://ru.wikipedia.org/?oldid=38626755 (date of address: 22.10.2011). 17 According to State Agency of Water Resources: http://www.scwm.gov.ua/
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 11 WATER USE IN THE ODESSA REGION
Water resources of the Odessa region transfer in the water exchange carried consist of groundwater and surface between the lake Sasyk and the water. The stocks of surface waters in Danube reservoirs and Tatarbunary the region are unevenly distributed. water canal. The northern and central parts of the region are characterized by limited In 2009, 322.6 million m3 of fresh reserves, and the southern part related water was used in the region (Fig. to the basin of the Dniester and the 5), including 33.77 million m3 from Danube, has a large supply of water. ground sources, respectively: on housing - 122.0 million m3; on In 2009, water withdrawal totaled to production - 61.12 million m3; on 2 134.0 million m3, which was 453.0 agriculture - 12.21 million m3; on million m3 less than in 2008. Reduced irrigation - 71.29 million m3; on amount of withdrawal of surface fi sheries - 54.63 million m3 and on freshwaters in 2009 was mainly due other sectors - 1.35 million m3. to decrease in the volume of water
Fish economy 17% Municipal needs 38%
Irrigation 22%
Agricultural water Industrial needs supply 19% 4%
Fig. 5. Structure of water consumption in the Odessa region by economic sectors
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 12 In 2009, the volume of water used million m3, irrigating - 7.5 million for housing needs was reduced by 1.5 m3, agricultural use - 0.02 million m3 million m3. The volume of water use (Fig. 6). increased: for industrial needs - 6.2
million m.cubic 600 It is used fresh water (including sea water) including: Industrial needs Municipal needs 500 Irrigation Agricultural water supply Fish economy Water losses at transportation 400
300
200
100
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 years Fig. 6. Dynamics of water use in the Odessa region by economic sectors
UKRAINIAN AGRICULTURAL POLICY AND WATER USE
Ukraine has favorable natural and equipment in agriculture, and to a conditions for agricultural production, decline in production volumes. which is a traditional activity. The absence of land reform, poor logistical In 2000, agriculture in Ukraine support for agriculture, disparities in improved the dynamics of prices for industrial and agricultural development, which is associated products, state of the social primarily with the important reforms development of rural areas impede the conducted in this year, as well as with development of agriculture. This has positive effects of devaluation caused led to deterioration of the capital stock by the fi nancial crisis in late 1998 and
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 13 early 1999. lands and the use of imperfect farming technologies. Application of organic According to the Land-Utilization fertilizers decreased from 257 million Institute of Ukrainian Academy of tons in 1990 to 12 million tons in Agrarian Sciences 18 about 3.2 million 2007, or by nearly 20 times, which ha of degraded and unproductive created a substantial threat to the arable land in Ukraine need preservation of fertility. Due to the conservation. This is due to the high dramatic decline in livestock, the level of tilled land, increased area of use of organic fertilizers per utilized row crops, straw burning after harvest agricultural area decreased 9 times. of cereals, decrease of the use of organic and mineral fertilizers. The primary issues that need to be solved in agriculture are: conversion The reduced number of livestock to organic farming; increase of the led to the decrease in areas under use of mineral and organic fertilizers fodder crops, including annual and and pesticides to an optimum level temporary grass. with simultaneous high-quality regulation, observing their necessary According to the State Committee on territorial, quantitative and qualitative Land Resources of Ukraine (in 1996), proportions; implementation of 19 360.4 thousand ha of farmlands soil conservation measures, erosion were exposed to wind erosion, 13 control measures; eco landscape 284.2 thousand ha - to water erosion design and planning of agricultural (the so-called washed earth). Due activities and land use at all to erosion, about 11 million tons of hierarchical levels; optimal eco-humus humus is lost every year. system of soil cultivation within the individual farms; ensuring ecological The main factor determining safety of individual agricultural signifi cant development of erosion objects 19. processes in Ukraine is the high intensity of developing agricultural
18 http://www.uaan.gov.ua/viddil.php 19 Kupinets L.E. Ekologization of food complex: the theory, methodology, mechanisms. - Odessa: Institute of market problems and economic-ecological researches of NAS of Ukraine, 2010 - 712 pp.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 14 IRRIGATION ON THE SCALE OF UKRAINE
Land reclamation is a major factor in Services of water supply to agricultural the intensifi cation of agriculture, an producers are among the main ones important component of sustainable in the water management system of agricultural production, especially Ukraine. Typical Ukrainian practice in years with unfavorable climatic is the compensation of water users conditions. Reclaimed land is actually for adverse weather conditions. An an insurance fund of the Ukrainian element of fostering the development state. of irrigated agriculture in Ukraine is the offset of 50% to 80% of consumed Within Ukraine there are three water to farmers using irrigated land. climatic zones: humid Forest zone This is one of the measures of state (25% of the area), not humid Forest- support to rural areas, approved Steppe zone (35%) and dry Steppe by the Government of Ukraine “On (40%). urgent measures to mitigate the negative effects of drought and ensure Irrigated lands are spread on an area the formation of grain resources for of 2.33 million ha. The main irrigated harvest year 2007” on June 4, 2007, lands are located in the steppe zone № 794. - 2.0 million ha (86% of the total irrigated area), 324 thousand hectares Compensation of 35 million UAH in the forest-steppe zone and 9.5 from the state budget in 2007 was thousand hectares in the forest zone paid to agricultural enterprises are irrigated. The share of irrigated of all forms of ownership and land in the total agricultural land is management (except the budget 7.2%. In the Autonomous Republic ones), which include farmers, private of Crimea the ratio of irrigated area agricultural enterprises, physical to arable land is 30%, in Kherson persons and entrepreneurs growing region - 26%, in Zaporizhsky - open fi eld crops on irrigated areas 13%, in Dnipropetrovsky - 11%, in or fi lling rice-fi elds with water. In Odessa -11%, in Nikolaev - 11.1%, in addition, the state reclamation pump Donetsk - 8% 20. Because of the poor installations received 7 million UAH technical condition of the irrigation from budgetary funds to cover the network and lack of irrigation systems expenditures for electricity used for considerable part of irrigated land water delivery 21. remains unused.
20 Staschuk V.A. Ecological and economic basis of water recourses basin management. – Dnipropetrovsk: “Zoria” Publishers, 2006. – 480 pp. 21 Institutional insuring of ecologically balanced water use in modern conditions: Monogragh / M.A.Khvesyk, V.L.Golyan, O.V., Jarotska, N.V. Korjunova. – Donetsk:”Jugo-Vostok Ltd”, 2008. – 455 pp.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 15 million m.cubic 8000
7000
6000
5000
4000
3000
2000
1000
0 1980 1985 1990 1995 2000 2005 2010 years
Fig. 7. Dynamics of water use for irrigation and its share in total water use in Ukraine 22.
In 2007, 1131 million m3 of water was agricultural enterprises with respect to spent on irrigation, which represents the introduction of modern irrigation 5 times less than in 1990 (Fig. 7). equipment, as well as the incapacity The main reasons for this are the of water users to pay for special stagnation of agricultural production utilization of water resources for in areas of the Black Sea economic irrigation. region, low investment capacity of IRRIGATION IN THE ODESSA DISTRICT
As to natural moisture, the territory of of irrigated land, out of which 220 the Odessa region lies in unfavorable thousand ha of public networks for agricultural production climatic (Appendix 8). The length of irrigation conditions. The irrigation system in network is 5 370 km, of which large the area is developed. main canals and pipelines, belonging to the Regional Water Department - There are 231.3 ha of reclamation 998.1 km. 8 684 hydraulic equipments land, of which 226.8 thousand ha are placed on the irrigation network,
22 According to State Agency of Water Resources: http://www.scwm.gov.ua/
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 16 3 119 of which are state owned. 242 districts of the region agreements public pumps deliver water to the were signed with 212 water users for system. The balance value of the 68.1 hectares of irrigated area. reclamation funds is 1 482.6 mil UAH. In the pre-crisis period, in the Odessa Before the beginning of irrigation region the gross share of irrigated season there was water exchange area of different crops was as follows: of 3.84 million m3 in reclamation 20% of the cereals, 40% of the fodder, network, worth to the value of 303 80% of the vegetables, 100% of the thousand UAH, water reservoirs of rice. At the same time the share of 18.9 million m3 were fi lled to the irrigated land only amounted to value of 1.8 million UAH. During the 8.9%. Nowadays, with no additional irrigation season 71.2 million m3 of cost, it is possible to supply water for drainage water to the value of 1.4 mil. irrigation of 140 - 150 thousand ha 23. UAH was pumped. In 2008 in Odessa region 63.8 million m3 of water was In 2010, water withdrawal and supplied for irrigation (2.3 mil.m3), supply to water users was carried of which 51.8 million m3 (81% of the out in accordance with contractual regional volume) to the farms in the obligations. As a whole in the nine Danube Region (Fig. 8).
million m.cubic 140 Odessa oblast 120 Bolgrad rayon Izmail rayon Tatarbunary rayon 100 Reni rayon Kilia rayon 80
60
40
20
0 2000 2003 2004 2005 2006 2007 2008 years Fig. 8. Use of water for irrigation in the Danube Region and the Odessa region
23 According to the information of the Odessa Regional Water Management Department: http://www.watermd.od.ua/index.php?mod=pages&page=%20melioration_ukr
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 17 In the past three years, in the Odessa preventing fl ooding of land. region more than 600 hectares of trickle irrigation were put into In the fi sheries sector, the main operation each year, currently 4 263 problem is to convert the fi sh ponds ha are covered by trickle irrigation. into an effective barrier ecological The value of the service of delivery of construction, by radical improvement 1m3 of water in the Odessa region is of technical condition on the ponds. 3.6 kopecks, and for the rice systems it is 1.2 kopecks. The value of electricity In light of the growing environmental supply for 1m3 of water from intake crisis phenomena and the introduction point is 7 kopecks. of energy power consumption limits in agriculture, there is a need to What is needed in the infrastructure improve irrigation regimes and of agriculture as one of the most norms. The perspective is water saving water-intensive industries is and reduction of irrigation norms by renovation and improvement of minimization of evaporation, which existing irrigation systems, bringing can be achieved by night irrigation, irrigation to optimum ratio with other underground and trickle irrigation, reclamation measures, improvement reduction of the total volume of of soil properties and increase of their irrigation. fertility, use of advanced water-saving technologies and irrigation regimes, ECONOMY OF WATER CONSUMPTION PRICE
The development of market relations for rational water use, taking into in Ukraine requires the establishment consideration environmental of economic relations in the fi eld of requirements. water use, which will take into account the interests of the state, the owners/ The payment for water use as natural managers of water resources, and the resource occupies a special place in individual water users. the economic mechanism of water management. In order to development of fee-paying water using the following tasks have In Ukraine, chargeable water use was to be solved: providing economic introduced in the 1980s. conditions for the development of market relations in the fi eld of On the basis of new methodological natural resources use; development approaches to economic valuation of of payment mechanism for the use of water, the so-called “rental concept” water resources; raising a trust fund; was developed in 1992, on the basis development of market mechanisms of which temporary tariffs on water
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 18 use for all water users were identifi ed, by the Ministry for Ecological Safety of approved by the Cabinet of Ministers Ukraine. of Ukraine (1994) upon presentation SPECIAL USE BY PRIMARY WATER USERS 24
The concept of payment for water use depend on fi nancial, environmental is based on the principles of ownership and social policy of the country. of water resources of Ukraine, the Compliance with the break-even Law “On Environmental Protection”, policy and environmental security and the Water Code of Ukraine. of water use provides for the According to this concept the special organization of management process water use is any of the following types in accordance with the principles of of water use: withdrawal of water sustainable development to balance with the use of facilities or technical the interests of all stakeholders: devices, discharge of sewage waters business, consumers and environment and pollutants, use of water obtained agents. from water bodies or from other water users, and use of water without The “special water use”, defi ned its removal from water bodies for by article 48 of the Water Code hydropower engineering, fi shery of Ukraine25, shall be subject to and water transport on the basis of mandatory environmental taxation a permit issued in the prescribed in addition to payment for the direct manner (Fig. 9). volume of water used. According to the Tax Code of Ukraine 26, charges Special use is based on the licensing for special use of water consist of: 1) system and fees. The order, rules, Fees for special water use from water regulations and payments for bodies, 2) environmental tax for the each kind of special water use direct discharge of pollutants into are established by normative and water bodies. legislative acts on the state level and
24 With Maria Tarasova 25 Act of the Cabinet of Ministers of Ukraine “On charge rates for special water use” of 18.05.1999 №836.- Site of Verhovna Rada “General Legislation”.-2010.- July,8. http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=836-99-%EF 26 Tax Code of Ukraine: (e-resource)//Site of Ministry of Finance of Ukraine.-2010.-October,7. http://www.minfi n.gov.ua/control/publish/ article/main?art_id=85496&cat_id=71369
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 19 Water use
water use (water bodies use) in order to satisfy the needs of the population, industry, agriculture, transport and other spheres of economy, including the right for water withdrawal, sewage discharge and other use of water (water bodies) (Cl.1 the Water Code of Ukraine)
General water use Special water use
is exercised free of charge by the citizens Is the water withdrawal from water bodies to satisfy their needs, without water bodies with the help of constructions or technical being assigned to individuals, and without devices, water use and pollutants discharge granting the relevant permits (Cl.47 the into water bodies, including water withdrawal Water Code of Ukraine) and pollutants discharge with return waters using canals (Cl.48, the Water Code of Ukraine)
Swimming; Withdrawal from the water body Boating;
Amateur and sports fishing; Water withdrawal from water bodies with the help of constructions or devices Animals watering;
Water withdrawal from water Environmental pollution by sewage bodies without the help of any discharge; constructions or devices, and water withdrawal from wells Water transportation losses
Without withdrawal from the water body
Water Waste Water use for hydropower supply water engineering; discharge Water bodies use for water transport; National economy use Fishery
Fig. 9. Structure of water use classifi cation in Ukraine.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 20 The charge rates on water resources and the payments for water use for special use are set by the Cabinet of hydropower engineering and water Ministers of Ukraine Resolution № transport” (Table 1). Despite the 836 of 18.05.99 “On the charge rates correction process, these rates remain for special use of water resources relevant.
Table 1. Charge rates on special use of water resources and surface water bodies (1999).
River basins, including all kind of &KDUJHUDWHVNRSɦñ tributaries The Dnieper North of Kiev (the Pripiat 5,04 and the Desna), city of Kiev included The Dniper South of Kiev 4,79 The Ingulets excluded 7,31 The Ingulets 9,83 The Severskiy Donets 5,54 The Jujniy Bug (without the Ingulets) 6,80 The Ingul 3,02 The Dniestr 3,02 The Wisla and West Bug 2,27 The Prut and Siret 2,27 The Tisa 2,02 The Danube 10,08 The rivers of Crimea 12,1 The rivers of Azov region 5,54
In total, in Ukraine there are 45 includes: regions, according to the charge rates for water intake. The ratio of the » The use of water taking into lowest and the highest fee for 1 m3 of account its losses from the water water intake from surface sources is 1 supply system by water withdrawal to 32. (primary water users) and/or from water withdrawal equipment of the According to Section XVI of the Water primary water users on the basis Code of Ukraine “Charges for special of the charge rates (Table 1), the use of water” the list of water uses actual volume of used water, and the subject to environmental charges, prescribed limits 27;
27 The limits of the special water use of water bodies with state importance are determined directly by the State Agency of Water Resources, the limits for water bodies of local importance are determined by the relevant local authorities (basin management administration). According to the data of the State Agency of Water Resources the payments for special water use in Ukraine represent between 500 thousand and 1 billion UAH per year.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 21 » The charge rate is set according to water use. “the prevalence of water resources, their quality, reproduction capacity, » For water transport the charge is set accessibility, comprehensiveness, in accordance with time of use of effi ciency, location, possibility of surface water during the reporting processing and neutralization of period and the charge rates: waste and other factors” and is 0.09 UAH/ton-km for cargo self- subject to differentiation based on: propelled and non-propelled fl eet, whether the water body is a surface and 0.01 UAH/per person per night or groundwater source; type of of operation for passenger ships. water basin to which the surface water body belongs; location of the » For fi sh-breeding the charge is underground water body; type of set according to actual volumes economic activity. of water needed for replenishing of the ponds while breeding fi sh » A coeffi cient of 0.3 is applied to the or other aquaculture in the fi sh charges of housing and communal farms (including the volume of companies and a coeffi cient of 0.005 water needed for fi ltration and is applied to the charges of the evaporation), and charge rates: thermo-electric power stations. 27.52 UAH/10 000 m3 of water in case of operation of surface water » For special use of mine, quarry and bodies, and 33.09 UAH/10 000 m3 drainage water the charge is set in case of operation of groundwater according to the actual volumes bodies. of water and the charge rate (5.93 UAH/100m3 of water). For water These types of charges, except included in drinks ingredients the losses in water supply systems, charge is set according to the volume are considered general operating of water and the charge rates: 25.60 costs, and are included in the cost of UAH/1 m3 of surface water and production, and in the economically 29.86 UAH/100 m3 of underground grounded tariff for the provision of water. piped water supply and sanitation service. The owners of water supply » For the use of water without networks are charged for the water withdrawal from water bodies for loss. hydropower engineering the charge is set according to the standard According to the Water Code, the charge rate (5.24 UAH/10 000 charges for special water use from m3 of water for all rivers in 2011), water bodies of national and local the actual volume of water passed importance are allocated (Fig. 10). through the turbine, and limits on
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 22 Charges for surface waters use for the needs of hydropower engineering, fishery and water transport 100%
Charges for water use during transportation 50% State budget of Ukraine 80% Charges for use of water resources of public importance 20% Regional budgets Charges for use of water 100% resource s of local importance Budget of 50% Autonomous Republic of Crimea
Allocation of the charges for the use of water resources of public importance, situated on the territory of the Autonomous Republic of Crimea
Fig. 10. Allocation of the charges for the special use of water in Ukraine 28
Environmental taxes on the discharge The tax rates for discharging of pollutants directly into water bodies pollutants into water bodies (Table 2) are considered general operating are set based on the type of pollutant costs and are included in the cost of prevailing in the discharge. production. It is determined based on the charge rates, the actual volume The allocation of the tax for the of discharged pollutants, the fi xed discharge of pollutants directly discharge limits, and the correction into water bodies (up to 2011 coeffi cient, determined on the location “environmental pollution tax for of the source of contamination. discharging waste waters”) is done in accordance with the provisions of the environmental law (Fig. 11).
28 Tarasova M.L. Organisational and economic mechanism of water resources management in Ukraine – doctoral thesis speciality 08.00.03 – Economy and national economy management, Doneck- 2011 – 255 pp.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 23 Table 2. Rates of the environmental tax for discharge into water bodies
Main contaminants Rate UAH/t
Ammonium Nitrogen 52,5 Organic substances 21 Suspended matters 1,5 Oil products 309 Nitrates 4,5 Nitrites 258 Sulphates 1,5 Phosephates 42 Chlorides 1,5
WATER CHARGES FOR SECONDARY WATER USERS
The charges for special water use by with the Law of Ukraine “On secondary water users is calculated Environmental Protection”, № 1268- according to an aggregate costs, XII of 26.06.1991, Article 38 29 ). including salaries, administrative Moreover, the cost of water supply to costs, monitoring, etc. Thus in each the fi eld is beard by the state in the area in the Ukrainian Danube region form of subsidies for the activities the irrigation tax depends on the of the regional water management number of pumping stations. The administrations. most expensive water in the area is in Tatarbunary and Kilia – up to 12 In case of non-fulfi llment of technical, kopecks (Appendix 5). sanitary and environmental conditions of use of water resources of Ukraine However, the actual payment is not disciplinary, administrative, civil, for water, but for the electricity spent and criminal penalties are stipulated, on water pumping. Agricultural through economic penalties including producers (farmers) in Ukraine do full compensation of the economic not actually pay for water (as a kind losses, caused by the offender. of special water use in accordance
29 Art. 38. General and special use of natural resources: The use of natural resources in Ukraine is realized according to the rules of general and special use of natural resources. ...According to the rules of the special use of natural resources the citizens, enterprises, administration and organizations can assume possession, use or rent of nature resources on the basis of special permits registered according to the fi xed rules for payment for the operation of manufacturing or other activities and on preferential terms in the cases foreseen by the Ukrainian law. WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 24 Tax on discharge of pollutants directly into the water bodies
100%
30% 70%
50%
20%
Budget of the Budget of cities Regional State budget of Autonomous Kiev and budgets Ukraine Republic Crimea Sevastopol Local budgets
10% 10% 10%
Fig. 11. Structure of the environmental tax on the discharge of pollutants directly into water bodies
FINANCIAL MECHANISM OF WATER USE AND WATER RESOURCES PROTECTION
Financial and economic state of • Payments made by economic agents water management, conservation for using centralized water supply and reproduction of water resources and sewage outfall services (UAH 77 is determined by the tariff, fi scal and 688 mil. in 2009) investment policies of the state. The main sources of generation of funds, • Rents for use in industrial quantities to be used for the provision of water of water from surface water bodies supply and sewage outfall services and (UAH 1.2 million.) funding of water protection programs and activities are: • Charges for special water use (UAH 708.97 mil.)
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 25 • Current costs of the business on environmental laws in the fi eld of nature protection, related to the water resources (UAH 4.14 million). operation and maintenance of nature conservation instruments (UAH 4 The main sources of fi nancing the 272.97 mil.); environmental protection costs, as in previous years, are the enterprises’ • Investments in fi xed assets, with the own funds covering respectively 76.5% aim of building and reconstruction of capital investment and 95.8% of of environmental facilities, purchase operating costs. The state and local of equipment for environmental budgets covered 20.5% and 4.1%, activities: sewage water purifi cation, respectively. In 2009 UAH 54.06 protection and remediation of soil, mil from the development costs of groundwater and surface water the State Budget of Ukraine was (UAH 1 712.71 mil) planned to be spent on protection and reproduction of water resources, UAH • Taxes for pollution of environment 3 mil of which to be spent directly on through sewage discharge (69.7 mil.) sewage waters purifi cation.
• Penalties for administrative offences A comparative analysis of the in the fi eld of water resources structure (Table 3) of State Budget protection (0.981 mil.) of Ukraine and the expenditures on water protection measures indicates • Payments for damages and losses improper use of nature conservation incurred as a result of violations of funds.
Table 3. A comparative analysis of receipts from the use of water resources and public expenditures on water protection measures
Receipts Expenditures Direction of Financing UAH Direction of Financing UAH mil mil Leasing of ponds in river basins 1,2 International cooperation 1,2 Applied scientific investigations 2,7 Charges for special water use 708,9 Capacity building 3,7 Tax for pollutions by discharges 20,9 Monitoring of nature resources condition 25,0 Purification of sewage water 3,0 Management and control 4,0 Establishment of national environmental 14,4 network Total 731,0 Total 54,0
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 26 FINANCIAL MECHANISMS IN OTHER NATURE MANAGEMENT SECTORS
In 2007, the taxes for special use of In 2007, the State budget of Ukraine forests amounted to UAH 173 million. provided funding of UAH 9.5 million for land protection, in fact the State Forests reproduction in 2007 was Committee for Land Conservation executed on an area of 73.6 hectares, fi nanced activities for the total amount including 60 thousand hectares of of UAH 9.4 million. planting and seeding and 13.6 hectares of natural reproduction (to the total The funds were used as follows: UAH amount of UAH 60 million according 4 466.3 thousand on construction of to estimations). erosion–preventive facilities and UAH 1 855.7 thousand on land reclamation. In 2007, the forestry enterprises of the State Forestry Committee undertook The Land Code of Ukraine and the forest protection measures on an area Law on the Protection of land hold of 150.1 thousand hectares. Biological the farmers responsible for soil methods of forest protection from fertility restoration. Land restoration pests were applied on an area of 132.3 is carried out in other sectors of the thousand ha (88%). Over UAH 2.3 economy as well. Every year, the mil was spent on forest protection companies of Gosugleprom (Coil- measures. administration) plan the works on land resources protection, which are In 2007, payments for land into grouped in 15 directions. In 2007, a Ukraine’s budget were UAH 3.8 total of 98 types of work were carried billion. out to the amount of UAH 39.4 million.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 27 WHAT IS NECESSARY TO BE DONE TO IMPROVE THE ECONOMIC MECHANISMS OF NATURE MANAGEMENT?
Fiscal management of water use the use of which is associated with today makes a start from the need to damage caused to the water resource strengthen the budget role of bringing potential. At the same time it is water resources in the economic necessary to extend tax facilities to turnover. The low percentage of companies and organizations that revenues for special use and use of master high effi cient technology, such water for hydropower engineering and as closed and non-waste systems of transport in the budgets on different water use. levels requires reviewing the charge rates for special water use. It is necessary to encourage the businesses not only to reimburse the The practice of direct government hazardous substances emissions, subsidies and subsidies for water wastewater discharges and excessive management has shown its use of natural resources, but to helplessness. Commercialization of provide a permanent limitation of the water component of the economy negative impact on the environment is required, and the solution of this through the development of problem depends on the effi cient environmental infrastructure and the operation of fi nancial institutions in use of the mechanisms of payment for the water resources market. Taking ecosystem services 31. this into account, national water policy elements should be introduced, The analysis of the present structure which get fi nancial and credit of the bodies associated with the use institutions interested in investing and protection of water resources, resources into rational economic use their inherent functions and the of water resources 30. scope of their activities leads to the conclusion that the modern Current tax system requires organizational structure of water improvements, which consist of management hinders the introduction consistent enhancement of the role of of economic instruments. Today, there payments for water use, introduction is no water body administration which of taxes like excise taxes on products, is capable of working on self-fi nancing
30 Khvesyk M. GolYan V, Khvesyk J.M. Institutional environment of sustained water use in market relations conditions: national and regional dimensions: Monograph. – NAS Publishers, 2005. – 280pp 31 Doroguntsov S.I., Khvesyk M.A., Golovynskiy I.L. Water resources of Ukraine (problems of theory and methodology): Monograph.-K.: Publishing centre “Kyivsky Universytet”, 2002. – 227pp
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 28 basis. Its absence deprives the especially true for agriculture. There is price of water of its most important no system of sound water tariffs based function: to be a source of income for on consumption volumes, the reason the companies from which they can for this partly consisting in the lack reimburse expenditures and generate of control of water intake and poor profi t. management information system and data collection system. Transfer of water charges into the budget made it impossible to The elaboration of tariffs should be accumulate fi nancial resources for the a reasonable compromise between reproduction processes, since it is not different political goals, namely associated to the investments in water taking into account actual price for management, the payment has not the services, a cost-effective prices become a lever for its development, criterion and social equity. This nor it has become a steady source of requires intelligent information about budget funds. the real cost of water, the number of services actually received by different Also principles of interaction between sectors, including communal, the basin management bodies and the condition of the infrastructure and relevant subsections of the Ministry necessary investments 32. of Environment of Ukraine and other agencies remain vague, and this An important factor is also the lack of again creates the same regulatory water quality record in the formation vacuum for targeted development of tariffs for end consumers. The of appropriate water management introduction of such a mechanism projects that will dramatically alter the would encourage measures to functional orientation of water use in improve water quality of the primary general and in its different sectors. consumers and water enterprises.
A great mass of water users Besides, state water management (agriculture, population), not covered departments are monopolists by the payment for water use, in the market for water supply. remained outside the scope of this This situation can be remedied economic inducement. if independent bodies - special commissions 33 - have the authority The effective price has to reduce the to approve tariffs for housing and pressure on water resources. This is communal services for the city or
32 Management plan of the Ukrainian part of the Lower Danube basin. Information and analytical report, Program of neighborhood Romania-Ukraine, project 2007/141-164 Development of cross-border cooperation in integrated management of water resources in Euroregion “Lower Danube”, 2009 33 http://zakon1.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=1682-14
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 29 region, as the Law of Ukraine “On become public companies, which, in natural monopolies” has envisaged. turn, will have to be legalized. Natural water monopolists will © Maxim Yakovlev, Danube Biosphere Reserve Yakovlev, © Maxim Fauna in the Danube Biosphere Reserve includes 1,925 species.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 30 REQUIREMENTS FOR THE INTRODUCTION OF MECHANISMS OF PAYMENTS FOR ECOSYSTEM:
• Introducing into Ukrainian Verkhovna Rada of Ukraine registered legislation the categories of a draft Law of Ukraine, which ecosystem services, payments envisages changing the allocation for ecosystem services (PES) and structure of the charges on the use investment in ecosystem services; of natural resources. Beginning with January 1, 2013, in Ukraine, 70% • Developing a mechanism for of this charge will remain at the economic and environmental company 34. With this aim in view, transfer associated with the companies and organizations have implementation of the principle of to develop plans for environmental payment for ecosystem services; policy and environmental activities. On the other hand, these 70% may be • Endorsing amendments to the Law a reserve for the implementation of of Ukraine “On Environmental PES in Ukraine. Protection” and the Budget and Tax Code of Ukraine on the reallocation The issues of the basin management of the environmental charges/ autonomy should be solved with taxes in favor of enterprises priorities to water management under programmes (projects) and protection business in the implementing PES; context of attracting investment resources for the implementation of • Initiating the establishment of promising innovative projects and agencies for ecosystem services as the commercialization of public water part of the system of public-private management sector. partnership.
34 According to information from Tatiana Timochko, chairman of All-Ukrainian ecological league, 25.10.20011
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 31 POTENTIAL PES SCHEMES Reedbed management
In the past, the reed was used by example). paper production factory of Izmail but after the collapse of the Soviet Union There is a lot of reed in the Danube the production was ceased and the delta which should be reasonably resource remained unused. Today, managed in order to conserve the the reed is harvested and sold on sustainable environmental status of international markets to be used in the wetlands. The implementation of construction and production of light PES-scheme of reedbed management furniture (it is known that reed from is proposed on the basis of the Ukraine was used for making sun- Danube Biosphere Reserve (Ukraine) protecting umbrellas in Greece, for (Appendix 1). Erosion control measures
Large part of the lands in the Danube of the decision of this problem are area is plowed (on the place of restoration of old gardens with the formerly naturally existing steppes). row-spacings sowed by a grass and Mainly cereals are cultivated and decrease in level of use of pesticides practices are entirely intensive. The and fertilizers. In this case farmers quantities of fertilizers or pesticides could pay to owners of a garden. Use loads to the soil are not monitored of involved with grasses pollinators and there are no good agricultural involved with grasses can be practices to ensure the balance. additional benefi t (service) for farmers Farmers use mainly fertilizers because and can potentially reduce the expense the livestock breeding in the region of fertilizers. is in decline. This resulted in high pollution of underground water. For The third potential possibility is this reason, according to the experts the bookmark of vineyards - under the quality of surface water is better condition of their organic use. than the underground water. Fourth option is the restoration of Taking all this into account a possible steppe habitats but this would have PES scheme is to harvest the reed very low economic value. and use it both as manure and for prevention of wind erosion by the use Fifth option is the restoration and of reed mats (Appendix 2). creation of forest protection belts (Appendix 2) – the issue is that The second identifi ed possibility borders between plots are not private
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 32 property and then the payment scheme would work very hard. Water quality and water resources management
The free-of-charge use of water basins lakes the polluted water is discharged by aquaculture producers in the area in the Danube River, which is used is an ordinary practice in the Danube water supply by the cities of Kilia, river basin. The river basin has mainly Izmail and Vilkovo. lakes which are used for irrigation, drinking and some of them for fi shery In fact, the fi sh farms use the activities. infrastructure and the resources (such as water, the natural function The aquaculture producers as a rule of the basin to produce fi sh feed) and pay neither for the special water infrastructure (gates) for free. use nor for the maintaining of infrastructure which regulates the Solving these issues can be water regime. Their only input is achieved by using the experience of planting the basin with fi sh. international institutions such as the International Commission for the The fi sh catch consists not only of the Protection of the Danube (ICPDR). It bred fi sh but also of Danube native is necessary to connect the managers species. Since the most common with other similar businesses in species are silver carp, grass carp, Europe to share their experience. carp, they overtake the place of the Measures are necessary to convince other species. The are two more the fi sh farms managers to pay for the issues: (1) nobody regulates how ecosystem services; to convince the much fi sh is caught – usually the catch state representatives that measures declared is much lower than the real should be taken in accordance with one; also, species that are not bred the requirements of the EU Water are caught and sold but not declared Framework Directive. (2) water is polluted with the fertilizer used by the fi sh farms but because of As a measure to compensate the corruption it is not possible to impose damage caused to the Danube penalties. Biosphere Reserve it is necessary to propose the building of sturgeon In addition, after being used in the factory near Kiliya (Appendix 3). Wetlands restoration and ecotourism
In order to restore wetlands in the fl ood-lands with further exclusion of Danube-adjacent region of Ukraine certain zones from economic usage; to it is necessary to take the following develop strategy for implementation actions: to make detailed inventory of of a complex plan for gradual
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 33 exclusion from use of degraded the Sasyk estuary into a fresh water agricultural lands and restoration of reservoir and to create environmental wetlands; to develop and implement conditions for sustainable social and mechanisms for excluding parts economic development of the adjacent of wetlands from the agricultural areas. Activities within the project rotation in view of future restoration are to develop and realize the plan of the natural habitats of these areas; of rehabilitation of the Sasyk estuary to develop and implement a plan for through dam removal; to guarantee restoring Danube fl ood-lands located the future environmental use of the between Danube-adjacent lakes and Sasyk estuary by including the entire the river according to the Program of estuary in the Danube Biosphere environmental network of Ukraine; to Reserve, to combine environment create the Green Corridor of the Lower protecting and recreational use of the Danube taking into consideration Sasyk estuary through construction anti-fl oods protection of territories; of a yacht port, to reconstruct the to include the Danube-adjacent Danube–Sasyk canal to be used for lakes and fl ood-lands to the Danube rowing; to develop infrastructure for Biosphere Reserve of the National environmental, rural, recreational, Academy of Sciences of Ukraine; to historical, ethnical and sport tourism; create trilateral biosphere reserve to increase the attractiveness of the of the Lower Danube including the Sasyk coastal areas for recreation respective territories in Moldova and construction which must take into Romania; to restore and increase consideration the environmental the area of riverine forests, fl ood- status of the estuary (Appendix 5). meadows and polders along the Danube (Appendix 4). The Danube region has a considerable potential for ethnical, cultural, Rehabilitation of the Sasyk estuary rural and environmental tourism can be realized by converting it into development thanks to its outstanding its natural state of marine estuary natural resources, architecture, through removing the dam. The applied art and original folklore. The aim of the project is to overcome PES can fi nd the place in tourism the adverse impact of converting projects too (Appendix 6). Implementation of PES schemes in other regions of Ukraine 35
Ukraine, as a whole, is characterized Conversion of agriculture and forestry as low water-secured country. Local to the new economic mechanisms businesses, housing and agriculture could work, but economic already experience the problem. opportunities are still not assessed.
35 with Nataliya Zakorchevnaya.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 34 A PES mechanism to fi ght the water protecting strips along the river and pollution of Calmius River from communication with citizens aiming housing outfall is under development. at decreasing the river pollution The scheme will aim at creating forest- (Appendix 7). CONCLUSIONS
Ukraine has a well developed system ecosystem services remains out of of charges for water resources use, a legal Ukrainian fi eld and offi cial including, direct charges for the water mechanisms of ecological economy, resources withdrawal and a system but has interesting prospects of of tariffs for secondary water users. implementing in the Ukrainian Since 2011 an environmental tax on conditions. discharges of pollutants into water resources operates. There is also a A serious barrier to the introduction system of fi nes. of payments for ecosystem services is the fi scal and budgetary legislation Institutional inactivity, which of Ukraine. Legal mechanisms of manifests itself in the “conservation” “horizontal” payments for the use of of the Soviet administrative ecosystem services are missing. system of water management, is characterized by high monopolization, However, the main barrier to the unprofi tability, and therefore, formation of a system of payments unattractiveness for foreign investors for ecosystem services is the weak to develop the water economy sector willingness of the consumers to pay of Ukraine. irrespective of their fi nancial situation and organizational status. Nowadays the payment for
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 35 Appendix 1 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES MANAGEMENT OF REEDBED IN THE DANUBE DELTA REGION – STENSOVSKO-ZHEBRIYANSKY FLOODPLAIN
Location: South of the Odessa oblast, Kilia rayon (area)
Area – 9 700 hа
Background: The Danube delta has unique geographical position and rich natural resources. However much further intensifi cation of traditional nature using (including fi shing) leads to the decline of its economic and ecological potential. Real alternatives are needed. A good opportunity for Ukrainian part of the delta is the use of the reed resources. Its greatest supplies in Europe are coming from the delta of the Danube. Already today from the Ukrainian Danube delta about 800 thousand sheaves of reed are exported in a year. And that makes about 6–8% of the European © Danube Biosphere Reserve market. More than thousand persons Fig. 12. Danube Biosphere Reserve. are employed in this economic sector. Volumes of the harvested reed can landscape mosaic maintenance, reed be trebled under condition of having restoring and regulation of the balance minimum negative infl uence on the of biogenesis substances demands natural Danube ecosystems. working out and implementing of effective system of reed management. The main measures: The primary In particular, it concerns Stnensovsko- production of reed biomass on the Zhebrijansky fl oodplains. territory of the Danube Biosphere Reserve accounts for about 900 The role of stakeholders: Now on thousand tons. That is, it is possible the territory of the Danube Biosphere to consider this resource almost Reserve (DBR, Ukrainian part of the unlimited. In reality, necessity of the Danube Delta) the reed is harvested
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 36 on an area of 3.8 thousand hectares Benefi ts and expected results: located in island territory of Belgorod and in Stensovsko-Zhebrijansky Cooperation of the Danube Biosphere fl oodplains. DBR together with Open Reserve with Open Company Company “Ecoforpost” carries out the “Ecoforpost” on management of melioration actions in Stensovsko- Stensovsko-Zhebrijansky fl oodplains Zhebrijansky fl oodplains, the channel can form a basis for introduction of restoration, management of the the PES mechanism. Involvement hydrological mode and the biogenic of an external investor can provide component of ecosystem. stability to the ecosystem services (quality, quantity of reed) and also to improve the environmental conditions of the fl oodplains.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 37 Appendix 2 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES RESTORATION OF FOREST BELTS AND OTHER ANTI EROSION ACTIONS IN REGION OF THE LOWER DANUBE
Location: South of the Odessa oblast (region), Kilia, Izmail, Reni rayons (areas) © Google Maps
Problem/background: Creation down of strips of woods have recently of wood strips and other plantations expanded. Further destruction of in agricultural landscapes is a long forest plantations especially in a time known method of fi ght against steppe zone leads to simplifi cation of soil erosion which is widely used in the structure of the agro landscape, Ukraine and in the Danube Region. soil erosion and reduction of Thanks to the creation of an extensive biodiversity. network of wood strips on farmlands in Ukraine it was possible to reduce In territory of the Odessa oblast there the impact of the phenomenon are 47.3 thousand hectares of forests, known as “black” storms when strong 70 % of which require reconstruction wind worn out the dry top layer estimated to UAH 14.2 mil. Barrier to of the soil. Forest belts are also a the forest restoration represents the place of dwelling for many species. fact that the land does not belong to Unfortunately, the cases of cutting farmers but to local village councils.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 38 In turn, the conversion of the land soil protection in the winter (in the from agricultural to forest category is conditions of snowless winter) also is inaccessible to farmers. recommended.
The main measures: The Izmail The role of stakeholders: Forestry is ready to carry Involving of farmers in the process out restoration/planting of of forest belts planting can be forest belts. The plantation costs connected to the realization of Kyoto (including the seedling) account for Protocol mechanisms and other green UAH 1.6 thousand per 200 square investments schemes. meters. Simultaneously, on separate sites, vineyards can be planted with Benefi ts and expected results: anti erosion purposes (this has its using of alternative measures against advantages regardless of the high erosion will allow keeping the soil costs - up to UAH 80 thousand per fertility and will promote carbon hectare). The use of reed mats for deposition.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 39 Appendix 3 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES RESTORATION OF RESOURCES IN THE UNIQUE AQUATICS OF THE DANUBE RIVER AND THE NORTH-WESTERN PART OF THE BLACK SEA
Location: The Danube Delta. introduction to the Black Sea basin, in particular to the Danube Delta. Problem/background: On the basis of long-term research in all In order the artifi cial reproduction Black Sea basin 6 species of sturgeon of sturgeon and its introduction into were observed: Russian sturgeon the Black Sea Basin to succeed, the (Acipenser gueldenstaedtii Brandt productivity of the Danube sturgeon & Ratzeburg, 1833). Starry sturgeon plant should not be less than 8.0 (Acipenser stellatus Pallas, 1771), million units of young fi sh with Spiny sturgeon (Acipenser nudiventris the potential resources to bring its Lovetsky, 1828), Sterlet sturgeon capacity to 10.0 million units/year. (Acipenser ruthenus Linnaeus, 1758), Sturgeon (Acipenser sturio Linnaeus, As a result of regulation of the 1758), Beluga (Huso huso Linnaeus, Danube River in the Iron Gates most 1758), Persian Sturgeon (Acipenser of the spawning habitat of beluga, persicus colchicus Marti, 1940). which earlier rose to Vienna, was Due to the river fl ow regulation, the lost. Sturgeons, in particularly starry degradation of spawning grounds sturgeon, are in a more favorable and water pollution, the number of situation. The following ratio of all species of sturgeon has decreased. species is proposed for a sturgeon Currently, all sturgeons are listed in plant on the Danube River: Starry the Red Book of Ukraine. According sturgeon - 40% - 3.2 million units; to the last data, the Spiny sturgeon is sturgeon - 30% - 2.4 million units; considered to be extinct in the region. beluga -30% - 2.4 million units. Reducing of the sturgeon abundance in the Black Sea basin led to the The main measures release of the feed niche previously occupied by these species. The The decision to build the sturgeon favorable habitat conditions, feeding plant in the area of Kilia is supported and wintering areas in the western by Department of Fisheries of Black Sea can signifi cantly increase the Ministry of Agrarian Policy of the scale of the artifi cial reproduction Ukraine. of sturgeons and their mass
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 40 The project aim is to prevent the The role of stakeholders and a negative impacts on the aquatic willingness to pay resources and to reduce the anthropogenic impact on the Danube The compensation funds from the Delta and the North-Western part of negative effects of exploitation of the Black Sea. navigable channel “Danube-Black Sea” to the Danube Delta Biosphere Objectives: Reserve can be the source of investment for the creation of the fi sh • Creation of facilities for artifi cial plant. Until recently, these funds were breeding, cultivation, introduction accumulated in the accounts of the of sturgeon and sea aquaculture; City Council Vilkovo, but the funds can be redirected! • Application of European methods of control and protection of aquatic Amount of funding - 2.5 million resources in conditions of increasing euros. anthropogenic load; Benefi ts and expected results • Creation of a unifi ed system of data collection and data management Restoration of the Danube and Black in relation to the status of aquatic Sea sturgeon populations and other resources of the Danube River and species of valuable aquatic resources; the north-western Black Sea; the planned 8.0 million specimens, in condition of 1% of commercial return • Introduction of new technologies can ensure the annual production of in aquaculture in the frame of pilot 1637 tons. projects on restoration of unique and valuable aquatic species.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 41 Appendix 4 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES RENATURALIZATION OF POLDER IN THE AREA BETWEEN THE LAKES KARTAL AND KUGURLUY
Location: South of the Odessa oblast, Kilia rayon (areas)
Area – 1300 ha “Partners for Wetlands” project “Partners for Wetlands”
Fig. 13. Potential usage of the polder. © Roman Sizo, WWF Danube-Carpathian Programme, Background: In the years 1980-84 cannels has stopped. Currently the on the territory of the polder land- collective agricultural enterprises of reclamation works were conducted «Novosel’skoe» and «Sunrise» use the and an irrigation system with three polder territory mainly for livestock pumping stations was created. As a grazing. result of ceasing of the state grants, irrigation has not taken place since As a result of the ceasing of the 1994 and recently the evacuation operations and further destruction of of the water from the drainage the hydrological management system
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 42 the polder territory is intensively The role of stakeholders fl ooded and overgrown by reed. Area suitable for growing of agricultural Reference costs of the equipment crops declined to 10-15 % of the total located on the channel of Skunda polder area. represents 400 thousands of Euro. About 250 thousand Euro is needed The main measures: The project for constricting of environmental of renaturalization of the polder aims infrastructure. Partly the project at renewal or creation of a system of is already realized within a TACIS possibly complete variety of fl oodplain project in 1998-1999. However, biotopes. Good access of visitors to disagreement of stakeholders to the restored sites will be ensured co-ordinate restoration measures corresponding to the conception of appeared an insurmountable barrier controlled tourist activity; conditions to the completion of this project. for seasonal livestock grazing are Thus, the project waits for completion created on the fl ood meadows. The already more than 10 years. basic types of plants which form the fl oodplain biotopes were conserved Benefi ts and expected results on adjacent areas. In the case of restoration of the periodic fl ooding, The realization of the project will the restoration of the wetland will be allow reconstruction of the water achieved by the forming of fl oodplain regime of the environmentally biotopes with high biodiversity. important area of fl ood land of the Danube. Natural habitats will be restored. Conditions for sustainable nature using, livestock grazing, equestrian tourism, sporting fi shing will be created.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 43 Appendix 5 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES RENATURALIZATION OF THE SASYK ESTUARY
Location: south of the Odessa oblast, Tatarbunari and Kiliya areas.
This is one of the largest water bodies in the north-western part of the Black Sea. Its southern part is adjacent to the Zhebriyanskaia Gulf of the Black Sea. The Estuary has a connection to the Danube River through its artifi cial canal.
Area - 210 km2, volume of water - 3 c Centre for Marine Ecology of Ukraine about 0.5 km , depth to 3.2 m fi
Problem/background: The transformation of Sasyk Estuary environmental status is related to the implementation of the project for construction of the Danube- Dniester (Dnieper) irrigation system in the 1980s. The project implied © Richard Lisovskyi, Scienti desalination of marine water in Sasyk Fig. 14. The Sasyk Estuary by separating it from the Black Sea with a 14 km long dam; the Danube-Dniester irrigation system pumping and discharging the salt on the base of conversion of marine water into the sea and fi lling the dam Sasyk Estuary to fresh water reservoir with fresh water from the Danube caused negative environmental via the Danube – Sasyk canal. This transformation and caused severe reservoir was supposed to irrigate the economic, environmental and social lands of Tatarbunari and Saratsky problems and confl icts. areas of the Odessa oblast on area of 29.2 thousand hectares (fi rst phase) The negative changes in the and then on further 28 thousand environmental state of Sasyk Estuary hectares (second phase). are the following: simplifi cation of the biological structure of the water body The environmentally and – decrease of the number of species, economically groundless creation of especially of valuable fi sh species;
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 44 development of eutrophication “Improvement of marine ecosystem of (development of blue-green algae the Sasyk Estuary by the construction that are quite dangerous to humans), of connecting canal and rehabilitation deterioration of fi shery resources. of adjacent territories”. Finances Furthermore the medicinal mud were allocated to develop feasibility of Sasyk Estuaty (as reservoir) was study of destroying the dam. The damaged by the introduction of Cabinet of Ministers by Decree № signifi cant amounts of hazardous 757 from August 18, 2010, created an substances and compounds with Interdepartmental Commission on waters from the Canal Danube - Sasyk. expediency and consequences of the The negative economic consequences elimination of the dam on the Sasyk of reorganization of Sasyk Estuary Estuary. are deterioration of recreation and sanitary potential of the region, The project “Aladin” identifi ed water pollution, intensifi ed abrasive potential sources of investment to process during high water levels of build a tourist complex on Sasyk the reservoir, negative impact on Estuary. Stentsovsko Zhebriyanskie fl oodplains of the Danube River (territory of the The investors of the Sasyk yacht club Danube Delta Biosphere Reserve). and the building of Sasyk Marine Trade Port (Russian State Property The main measures Fund) can be the fi nancing source for the operations on the rehabilitation of Renaturalization of the Sasyk the estuary. Estuary involves its restoration to its natural state as marine estuary. In The costs for planning and order to rehabilitate the Sasyk Estuary technical measures for the cost-effective options for its “marine” rehabilitation of the Sasyk Estuary use are offered: conservation, by building a connecting canal are recreation and tourism, including approximately € 4-6 million. sailing, fi shing and transport (river - sea port).
The role of stakeholders and a willingness to pay
On August 10, 2009 the Odessa Regional State Administration and the Odessa Regional Council adopted the order number 615/A- 2009 - 420/2009-PR, according to which a working group is created to Zizak Andrey Skachek, Velymyr © develop and implement the project Fig. 15. The Sasyk Estuary marina project.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 45 Benefi ts and expected results products will increase. The number of tourists will increase. Conditions for The fl ooding areas will decrease; the reforming the irrigation system will ecological state of the estuary will be created; the functions of natural improve which will answer the needs spawning in the North-Western part of the local population (swimming, of the Black Sea will be resumed. fi shing of quality fi sh). As a result of The example of renaturalization of the project implementation the health such a large natural object is unique and environmental condition of the and it will help attracting additional villages and resorts will improve, investments in future. water security and quality of fi shery
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 46 Appendix 6 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES BOGATAYA FARM
Location: the Odessa Oblast, the Izmail area, village of Bogatoe
Area: 20 hectares
Problem/background: The tourism potential of the Danube region is represented with very favorable climatic conditions and valuable natural resources. Abundant living resources such as hunting Lavrenova © Valentina resources of birds and mammals, fi sh The farmstead “Bogataya” of the Danube Lakes, mouth of the Danube and coastal zone, medicinal • Dendropark, which presents local plants are very important for tourism. rare and endangered plants; Under normal circumstances it is very diffi cult for tourists to get acquainted • Introduction of pheasants in the with the natural wealth of the Danube surrounding lands. region. An option is the establishment of environmental museum with The role of stakeholders and elements of zoological park, the willingness to pay creation of “green pharmacy” which would be represented by the medicinal Private entrepreneur Valentine and rare plants of the Danube region. Lavrenova and her partners are willing to invest their own and borrowed The main measures funds in the development of “Bogataya Farm”. Creation of a historical, cultural, ecological and ethnic Tourist Amount of funding - 150 thousand Information Centre “Bogataya Farm” euros. involves the creation of: Benefi ts and expected results • Land fi ll for growing of local medicinal plants (Green Pharmacy); Private investment in new environmental tourist destinations • Zoo with the local fauna; will be realized in the frame of development of the concept of rural
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 47 tourism in the Danube Region. riding, pier, fi sh hatcheries, crayfi sh hatcheries, frog farm, pheasant The pheasant will be reintroduced in farm, “the street of craftsmen” who the surrounding lands. represent local crafts (handmade textiles of wool, hemp, silk, yard for Green tourism complex will be created the processing of a reed; smithy; including sports facilities, certifi ed traditional production of organic eco-beach, trails for horseback food). © Maxim Yakovlev, Danube Biosphere Reserve Yakovlev, © Maxim Reedbeds – typical of the Danube Biosphere Reserve.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 48 Appendix 7 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES INTRODUCTION OF PES MECHANISM IN THE KALMIUS RIVER BASIN
Location: 4 regions of Donetskaya dams leads to decrease of the water oblast. exchange, creation of stagnant and unhealthy zones, siltation of the river River Kalmius runs into Azov sea beds and shallowing of the rivers. The high level of water pollutions Length – 209 km, area of the as a result of ineffi cient operation of basin – 5070 km2 most of the waste water treatment equipments and water transfer Background: The water of Kalmius systems of the businesses and the lack River is used in the industry and of water protection bands along the agriculture. The basin takes more rivers of the basin lead to breaking the than 60% of the waste water of the environmental law, namely ploughing industry of the region (350 thousand the fl oodplains up to the river edges, pollutants). Flow regulation by “wild construction development”, © Anton Vorauer / WWF-Canon Anton Vorauer ©
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 49 illegal dumping, quarries for sand, etc. proximity with the river beds being also water polluters will take part The basic measures in creation of the scheme. The PES scheme will be put into practice under Brining order in the coastal protective direct guidance of Severskiy Donets zones, implementation of the forest River Basin Council. melioration, where it will have the maximal impact to reduce the water Benefi ts and expected results pollution in Kalmius river basin. Improvement of quality of water in Stakeholders’ role basin of Kalmius river by streamlining of economic activities and carrying The private enterprises having out of forest ameliorative actions in industrial activity in immediate coastal zones.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 50 Appendix 8 / POTENTIAL PROJECT FOR IMPLEMENTATION OF PES
THE SCHEME OF IRRIGATING NETWORKS IN THE ODESSA OBLAST © Odessa Regional Water Management Department. Management © Odessa Regional Water The scheme of irrigation networks in the Odessa region.
WWF 2012 - Payments for Ecosystem Services in Ukrainе / page 51 © Michel Gunther / WWF-Canon
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