French Experience as a Model for Water Charging in Brazil: the Case of the Paraíba do Sul river basin

Water management in Brazil dates from 1934, when the Brazilian Government implemented the first Water Code. However, the main guiding document for water resources management, the National Water Resources Policy (NWRP), was only implemented in 1997 by the National Act nº 9.433. The Brazilian Water Law was built on the principles of the 1964 French Water Law and implemented integrated water management at river basin scale and the concept of water as a public good with economic value, hence appropriate charging mechanisms were required. In France, water charges dates from shortly after the enactment of the Water Law, with the Seine-Normandie river basin being the pioneer in 1968.

Water use charges are one of the management instruments established by the NWRP. These fees are intended to promote rational use of water and to fund investments on the conservation and restoration of water resources. The Paraíba do Sul River Basin was the first Brazilian interstate watershed establishing water pricing mechanisms, in 2003. This is a very economically relevant river basin, since it supplies the three most developed states of the country (São Paulo, Rio de Janeiro and Minas Gerais).

Since the implementation of the instrument, both countries have been developing their water management systems. In Brazil, the major change was the creation of the National Water Agency (ANA), in 2000, the regulatory agency is responsible for implementing the charges in interstate watersheds, collecting the revenues and providing technical support to the river basin committees.

In France, in order to achieve the objectives of the European Water Framework Directive (WFD), the Government enacted the 2006 Law on Water and Aquatic Environments (LEMA). This law reformed many environmental laws and codes, including the ones concerning water pricing. The fifty years of the French experience are a renowned case in water management, due to the application of the “water pays for water” principle underlying the charges, which contributes to the legitimacy perception and acceptance of the charges by the users.

In such context, what does Brazillian water-related entities could assimilate with the French experience in water charging? As a consequence of a consultancy project carried out during 2018-2019 by the company RHA Engenharia e Consultoria SS Ltda., this paper aims to analyze the water policies implemented in both countries, identifying which aspects could improve Brazilian water charging methods, in particular on the Paraíba do Sul River Basin.