Financing adaptation to climate change The Dutch Romanian

Financing adaptation to climate change: The Dutch Romanian bridge in developing a tax system Dr. Jan J. Schrijen Chairman of Water authority Roer en Overmaas Member of the Board of The Dutch Association of Water Authorities 18 March 2009 1

RIVER DELTA 18 March 2009 2

ELEVATION MAP OF THE NETHERLANDS 18 March 2009 3

THE NETHERLANDS WITHOUT DIKES 18 March 2009 4

THE NORTH SEA FLOOD 1953 (1) 18 March 2009 5

THE NORTH SEA FLOOD 1953 (2) 18 March 2009 6

THE NORTH SEA FLOOD 1953 (3) 18 March 2009 7

PICTURES FLOODINGS RIVER AREA 1995 18 March 2009 8

BREAKING DIKES 2005 18 March 2009 9

KATRINA U. S. A. 2006 (1) 18 March 2009 10

KATRINA U. S. A. 2006 (2) 18 March 2009 11

SUFFICIENT FUNDS FOR FLOOD PROTECTION 18 March 2009 12

DUTCH MODEL OR APPROACH Local water authorities (Waterschappen) Stakeholder involvement Local financing by local taxes 18 March 2009 13

DUTCH WATER TAXES Purpose tax Cost recovery Benefit principle 18 March 2009 14

EXPENDITURES AND TAX RATES 60% of all expenditures for flood protection are financed by local taxes € 1 billion a year Rented home pays on average € 55 a year Owner of a home pays on average € 115 a year 18 March 2009 15

STATEMENT 1 The Dutch financing system has proofed local taxes can be an effective en efficient way of financing a substantial part of the measures necessary for climate adaptation. 18 March 2009 16

THE DUTCH – ROMANIAN CONNECTION Ministry of Environment National Administration Apele Romane Ministry of Environment Somes -Tisa Waters Division 18 March 2009 Ministry of Environment Romania

EVALUATION GRID 18 March 2009

PHASES OF THE PROJECT Structuring activities and tasks Development of three tax scenario’s Tax pilot for implementation 18 March 2009 19

ACTIVITIES, PROCESSES, PRODUCTS AND TASKS Public Services Public service Impose taxes Collect taxes Tax money 18 March 2009 Task Product Proces Resources Activities

STATEMENT 2 By describing water management activities in a systematic way you improve insight in your activities and the money involved. 18 March 2009 21

INTERVIEW PART By Dr. Jan J. Schrijen and Dr. Vasile Pintilie National Administration Apele Romane 18 March 2009

ROMANIA (NORTHERN TRANSSYLVANIA) 18 March 2009 23

ROMANIA (NORTHERN TRANSSYLVANIA) 18 March 2009 24

LUTGENS POLICY HYPOTHESIS Ministry of Environment Level of performance Water management Social security Economy Other policy domains Ministry of Satisfactory Ministry Basic needs Water management 18 March 2009 25

Recommendations Start small Step tot step approach Keep it simple! Explain why taxation is necessary 18 March 2009 26

ABOUT ‘HAPPY TAX PAYERS’ Slogan of the Central government about taxes: ‘We can’t make it nicer, but we can make it easier for you’ The local water authorities have a better slogan: ‘We can’t make you happier, but at least you know what you are paying for’ 18 March 2009 27

DISCUSSING ABOUT TAXES 18 March 2009 28