In the framework of the Strategic Action Programme to address pollution from land-based sources and activities in the Mediterranean (SAP MED), Priority Actions Programme Regional Activity Centre (PAP/RAC) is implementing the activity on the Sustainability of SAP.

SAP was created with the aim to protect marine environment, including its biological resources and diversity from the effects of harmful land-based activities. It is estimated that land-based sources account for more than 80% of the total pollution load in the Mediterranean. The major sources of degradation of the Mediterranean marine environment are recognised in municipal and industrial wastewater and solid waste, agricultural runoff, atmospheric deposition and competing activities on the coast for the exploitation of natural resources.

Sustainability of SAP, project assigned to PAP/RAC includes identification of economic instruments that will assist in developing a sustainable financial platform for the continued implementation of the SAP in the longer term, and incorporation of such economic instruments at the national level in the National Action Plans. These activities will develop administrative, legal and fiscal mechanisms for the sustainable financing of the implementation of SAP at country level. These activities will be undertaken in close co-operation with country partners, relevant international organisations and institutions, and appropriate regional experts.

PAP/RAC has been dealing with the economic instruments since early 1990. In the period 1990-1997 PAP/RAC implemented the priority action “Integrated Planning and Management of Mediterranean Coastal Zones”. A part of this action was the analysis of the application of economic instruments in coastal management in the Mediterranean region. Starting points for the preparation of the analysis were worked out at the expert meeting held in Gorizia in 1992. The meeting recommended that an analysis of the application of economic instruments in the Mediterranean countries be made in order to improve the practice of the application of economic instruments in those countries. Approach to the preparation of the analysis of economic instruments was based on the experience of OECD member countries.

The analysis has shown that economic instruments had been widely applied in practice. It recommends that work on the analysis of economic instruments be continued and the application of economic instruments in the countries be encouraged, as they have proven to be effective in environmental protection and pollution control.

After completing the 1994 analysis on application of economic instruments in selected Mediterranean countries, PAP/RAC continued to keep up with the latest developments in relevant scientific theories. It has established a constant flow of information through an economic instruments network of experts. PAP/RAC also follows activities of the World Bank in the field, with which it has successfully co-operated in several projects.

Currently, an additional analysis, concentrated more on the instruments abating land-based pollution, is being carried out by an international team of economic instruments experts. PAP/RAC has prepared a questionnaire which should provide an insight in the state-of-art of application of economic instruments for combating the land-based pollution in each country of the Mediterranean. The results of the questionnaire will be used to evaluate the existing economic instruments, and also as a basis to prepare proposals for introducing new or adapting the existing economic instruments in selected countries. The results of dynamic comparative analysis of the state-of-art of application of economic instruments for environmental purposes in the Mediterranean will be disseminated to all national governments, relevant institutions and interested NGOs.

The implementation of the project will begin with a pilot project in one Mediterranean GEF eligible country. After the implementation and evaluation of newly introduced or adapted economic instruments, five additional pilot projects will be selected, prepared and implemented. An in-depth evaluation of the project will examine all its activities against the stated objectives, cost effectiveness and delivery of outputs and impacts. Results of this evaluation will be disseminated to the national governments, relevant institutions and interested NGOs of the Mediterranean countries.

This project is expected to develop administrative, legal and fiscal mechanisms for the sustainable financing of the implementation of SAP at country level, as well as to enhance government capability to identify, develop and implement various types of economic instruments suitable for related country. Other possible results of the projects are: generation of the political will for change; actual change in national legislation and regulation; change in management practices; improvement of environmental database; capacity building of national and local institutions; training of government officials and non-government stakeholders; public participation; co-operation with and training of NGOs; and networking.