Problems - Objectives Problems and Objectives Environmental Impact of the industrial pollution from the Nikel/Zapolyarny mines and smelters. Reindeer overgrazing and subsequent erosion-related pollution of water bodies Changes in socio-economic structure caused by the aftermaths of closing an iron ore mine in Bjornevatn (Kirkenes) and subsequent population decrease, as well as efforts of the local administration to create alternative income opportunities. Impact of cross-border traffic and eco-tourism on economy and related environmental issues on both sides of the border. Increased frequency of visits by tourists (mostly in the summer season) to unique natural areas and habitats in the area is among others expected to increase the awareness of the environmental issues and augment the conservation, pollution and environmental planning. Main objectives The overall goal of the project is to make use of the vast amount of scientific data from the area in a GIS database in combination with a watershed transport model and cost-effectiveness analysis of pollution mitigation measures to achieve water quality standards in local water bodies. The transport model will be used to evaluate the present risks represented by soil and water pollution. In addition, different land use scenarios (see above) will be tested in the model to evaluate the consequences for the water quality in the Pasvik River and the degree to which pollution mitigation measures achieve established water quality standards. The transport model will be calibrated with real monitoring data from the Pasvik River and with historical records achieved from sediment cores from Lake Kuetsyarvi. Indicators On the different two sides of the former "Iron Curtain", both industrial/technological and the agricultural activity have belonged to two totally different regimes. It is believed that this can impact on landfill techniques and both the amount and composition of landfill-leachate. In this vulnerable environment, landfill leachate may be important local sources of aquatic contamination. Introduction of contaminant substances with possible food chain accumulation could be a serious risk factor. The waste handling methods and leachate composition will be used as environmental risk indicators and as input in the risk model. As an issue with increasing importance, the economic implications of water management will receive maximum attention. Relationship of environmental, social and economical issues will be explored, analysed and included in the modelling process in form of quantified relationship among core indicators (energy consumption per capita, relative price of one kilowatthour, expenditure on R&D as percentage of GDP, relative cost of processing potable water and sewage, environmental accounting and its involvement in planning and decision making process etc) Cost-effective mitigation Based on an initial identification of point and non-point pollution sources using available studies, mitigation technology options will be identified for each source. These may involve end-of pipe- treatment or cleaner production technologies in industry, clean-up / sealing and monitoring operations at landfill sites, or relocation of polluting activities. Data on local production technologies will be collected through interviews with key informants in the relevant activities. Effectiveness and cost of mitigation methods will be quantified using results transferred from similar operations in Norway in which ICG has experience. Identifying different water quality standards to be respected in the catchment area, the pollution-transport-risk model will be used identify different sets of mitigation measures in the watershed. For each alternative water quality standard the most cost-effective set of mitigation measures can then be identified. Land use scenarios What are the costs of excluding certain economic activities from certain contaminated areas? This could include limiting the access of recreational and grazing activities in highly polluted areas. Alternatively, it could mean exclusion of economic activities from certain critical natural habitats that are identified during the project or in previous studies. Both of these land-use scenarios entail opportunity costs in terms of foregone earnings or welfare from the land-uses which are excluded (grazing, recreation, housing, industry, mining etc.). Data on foregone net income from siting these activities elsewhere would come from semi-structured surveys and accounting statistics from the different activities. For recreation we would use the "benefit transfer technique" to transfer results from existing studies on the willingness to pay for visits wilderness areas in Europe. The opportunity cost, cost-effectiveness and benefit transfer approaches have also great general methodological relevance for other study sites in the proposed project. Expected results The model will be used as a risk model and is expected to answer questions listed below (but not limited to this list): What are the potential cost-savings in cross-border investment in mitigation technology? Which mitigation measures are technically feasible for meeting water quality standards in the water-bodies of the catchment? Which of these measures are most cost-effective? What are the economical implications of water level oscillation (e.g. for the hydroelectric power generation)? What risk potential is present? Which human population and economic activities are at risk? What are the critical habitats at risk? How will different kinds of land use effect the water quality and what is best practice for land use? In light of the actual contamination, what kind of land use is acceptable in the different sectors of the study area? How to find proper locations of landfills in these kinds of environments? What are acceptable emission standards for the smelter, (based on risk assessment and transport models) Are the present and different future scenarios a threat to agricultural interests/fisheries?