Water Charges in Brazil

The Ways Forward

image of Water Charges in Brazil

This report examines the current system of water abstraction and pollution charges in operation in Brazil. It assesses the current system’s implementation challenges and provides possible solutions. The report explores how water charges can be both an effective means for dealing with water security issues, and a tool for enhancing economic growth and social welfare. Specific analysis is put forward for three case studies in the State of Rio de Janiero, the Paraiba do Sul River Basin and the Piancó-Piranhas-Açu River Basin. The report highlights that water charges need to operate in conjunction with an effective water regulatory regime and concludes with an Action Plan based on practical steps and recommendations for its implementation in the short, medium and long-term.


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Foreword and acknowledgements

As a longstanding advocate of the Polluter-Pays and User-Pays principles, the OECD argues that economic instruments can play an important role for effective and efficient water resources management when designed and governed adequately, and when combined with other policy instruments. In particular, setting and governing abstraction and pollution charges that can deliver expected policy objectives is not an easy task and remains a necessity in several countries. A number of governments around the globe have been experiencing severe reform challenges as well as fierce resistance from users when putting in place water charges for the first time and/or raising their levels.

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