Utilizing auctions for cost-effective barrier removal – priming for a pilot

The Virroiksi project explores the potential of a scrappage fee scheme to remove small migration barriers

The aim of the project is to explore the voluntary and cost-effective removal of small migration barriers and the restoration of stream habitats through a scrappage fee scheme. What elements of a competitive scrappage scheme would work for dam owners and how could such a scheme be applicable in the Finnish regulatory and operational environment?

The project consists of four interlinked elements. The willingness and readiness of dam owners to participate in the envisaged scheme will be investigated through extensive interviews. These will be carried out among small barrier owners in North Karelia.

The second part will focus on the key features of the water licensing scheme and how they affect the timing and feasibility of dam removal and stream restoration. The third part prepares the ground for the actual scrapping fee mechanism. The fourth part will be the writing of a guidebook based on the project and its practical implementation.

The project aims to develop a blueprint for a policy program that will allow river restorations to be targeted as efficiently as possible – i.e. to those sites where the ecological and social benefits are greatest in relation to the costs. The aim is to minimise additional costs and administrative burden.

The work is based on a practical planning approach, outlining a step-by-step approach to the scheme: selecting a regional target, collecting bids for the sites, using the ecological information provided by the ELY Centres, selecting sites, dealing with the permitting processes, carrying out removal activities and paying the fees. On this basis, the following issues, among others, will be addressed:

– How well can the duration of permitting processes be predicted?
– Who will be the practical implementer, i.e. the restorer?
– Is there a need for a coordinating authority responsible for tendering, site selection and implementation?

The aim is to create a system that provides an ecologically and economically efficient and low-cost framework for small scale barrier removal projects. As participation would be voluntary for dam owners, it is expected that there will be a strong commitment also in the later stages of the process.

The project will be conducted by UEF and the Natural Resources Institute of Finland (Luke), in close close cooperation with Motiva and key stakeholders.
The final output of the project will be a practical guide that will show how the scrappage payment scheme could be applied in real-world constraints through piloting – taking into account permitting practices, eco-economic efficiency and the willingness of operators to participate.