<p> The United Nations has dedicated the annual International Day of Biological Diversity on 22 May 2007 to &quot;Biological Diversity and Climate Change&quot;, highlighting both the interlinkages between the two issues and the interaction between the relevant international or multilateral conventions. On 7 May 2007, the joint CDU and CSU party in the German Federal Parliament (Bundestag) held an Expert Meeting to review the state of the debate and explore policy options and needs. Ecologic Institute contributed a presentation focussing on the international regimes on biological diversity and climate change.</p>

<p> Combinations of electrical, information and communication technologies allow for &quot;Smart Grids&quot; to provide dynamic efficiency for power generation, transmission and distribution. Ecologic took the lead in preparing a Learning Centre on the state and promise of Smart Grids at the 15th Session of the UN Commission on Sustainable Development (CSD 15).</p>

<p> Benjamin G&ouml;rlach presented some preliminary results of the WaterCost Project, which has been set up to develop and test a practicable methodology for cost-effectiveness analysis of groundwater protection measues. WaterCost brings together partners from five European regions, including municipalities, water supply companies and environment agencies. Ecologic Institute supports the German partners in the WaterCost project in the application of a cost-effectiveness analysis in a Frisian groundwater protection area. In his presentation, Benjamin G&ouml;rlach surveyed the costs and the effectiveness of 10 possible measures to reduce nitrate pollution from agricultural sources in the groundwater catchment area, and discussed potential combinations of these measures.</p>

<p> Every year, the Congressional Study Group on Germany brings together Members of U.S. Congress and members of the German Bundestag for a series of discussions on issues of mutual interest. The topics for 2007 included renewable energy, relations with China, the war in Afghanistan, and developments in Africa.&nbsp; R. Andreas Kraemer of Ecologic was invited by the United States Association of Former Members of Congress (USAFMC) to speak on renewable energy policies in the European Union.</p>

<p>&#13; The concept of disproportionate cost is one of the key economic elements of the EC Water Framework Directive. The practical implementation of this concept by the Member States offers a range of possible interpretations that are more or less in line with environmental economic theory. In a contribution to the envecon 2007 Applied Environmental Economics conference in London, Benjamin Görlach and Britta Pielen provided an introduction to the concept, its role in the Water Framework Directive, and provided an overview of the current discussion in some EU Member States.</p>&#13;

<p> Over the coming years, a trillion dollars worth of investment in water and sanitation infrastructure is needed in the United States of America.&nbsp; It is not clear how such investment can be financed, and those responsible in the USA are looking for institutional and organisational solutions.&nbsp; To this end, the US Environmental Protection Agency (US EPA) and other held a conference on &quot;Paying for Sustainable Water Infrastructure&quot; in Atlanta, Georgia, on 21-23 March 2007.&nbsp; R. Andreas Kraemer presented the municipal structures for water supply and sewerage in Germany.</p>

<p>&#13; The concept of sustainable development has gained tremendous popularity since Rio but is still challenging to consider in everyday political practice. The Parliamentary Advisory Council on Sustainable Development, in its opinion on the 2004 progress report on the National Sustainability Strategy of the Government of the Federal Republic of Germany, thus asked for an instrument to assess legislation on its sustainability. On 28 February 2007 the Parliamentary Advisory Council on Sustainable Development held a public hearing on the Sustainability Impact Assessment instrument, which aimed at discussing existing concepts for Sustainability Impact Assessments as well as their integration in parliamentary procedures.</p>&#13;

<p>&#13; Sustainable energy and climate change policy with respect to biofuels has become more and more important. In addition to offering a noteworthy alternative to fossil fuels, they also offer carbon reduction potential. However, increasing use of biofuels has led to new challenges in the field of economy, nature protection and social acceptance. Due to these new challenges, one important step is to develop a certification system for biofuels based on criteria of sustainability. Stephanie Schlegel, a Fellow at Ecologic Insitute, presented experiences with the FSC Forest Certification at the workshop ”Sustainable biofuels – How to certify?“, organised by Econsense.</p>&#13;

While Germany has introduced a comprehensive ecological tax reform (ETR) in 1999, Poland has taken only first steps into this direction. In order to intensify the exchange between German and Polish experts from politics, research and NGOs, the Polish Ministry of the Environment together with the German Ministry of the Environment organised a workshop in Warsaw during which the design of the German ecological tax reform and its implications were discussed. Helen Lückge, Fellow at Ecologic, presented the economic implications of the German ETR.

The second transnational conference of the WaterCost project as part of the Intereg North Sea Region focused on the issue of cost-effectiveness analysis and how it to apply it to groundwater and water supply issues. Benjamin Görlach gave a presentation on the role of cost- benefit considerations in the implementation process of the Water Framework Directive. He concluded that since there is only patchy data on costs and benefits, and elaborated on the role of the AquaMoney project in addressing this gap.

How can the effectiveness of environmental policies be assessed in retrospect? Have the stated targets of environmental policies been achieved, and if so, was it because of the policies or because of other factors? Have targets been achieved at proportionate costs, or could there have been cheaper options of reaching them? These and other questions on ex-post policy evaluation were discussed at an expert workshop convened by the European Environment Agency and the Environment Agencies of Denmark, the Netherlands and the UK. Benjamin Görlach gave an introduction to cost-effectiveness analysis as an evaluation tool, and presented experiences with ex-post cost-effectiveness analyses of environmental policies in Europe.

The seminar on "Energy and Climate Policy for the Future" served to identify the regulatory framework and conditions of energy supply and energy policy that the industry requires, and to discuss the interaction between energy policy and climate protection. R. Andreas Kraemer of Ecologic Institute was invited to set the tone for the seminar with an opening dinner lecture, and to add reflections on energy supply security and the security policy implications of energy policy in the European neighbour states.

The environment is a cross-cutting theme in the European funding policies. Which are the environmental and agricultural funding opportunities for 2007-2013, and what are the consequences for landscape change and sustainable development? Rainer Müssner in collaboration with Katrina Marsden gave a presentation focusing on these issues at the 14th International Symposium on Problems of Landscape – Ecological Research.