C084/2024/2025 - Environmental Governance, Principles and Biodiversity Targets Bill – Regulatory Imp

Short description: The Welsh Government sought a contractor with experience in cost-benefit and economic analysis to undertake an RIA for the policy options outlined within the white paper and the consultation response, “Securing a Sustainable Future Environmental Principles, Governance and Biodiversity targets for a Greener Wales”.This work will build upon the draft RIA that was produced to accompany the White paper, and will inform the development of the Explanatory Memorandum for Welsh Ministers. This would include analysis of the ‘do nothing/business as usual’ option which would act as a baseline against which to assess the relative costs and benefits of the alternative options.In summary, the requirements will be:• Review the previously produced draft regulatory impact assessment, including the options appraisal and cost-benefit analysis.• Further develop analysis to reflect monetary costs in line with HM Treasury Greenbook guidance, showing in costs in constant prices (i.e. excluding general price inflation), with the base year and appraisal period clearly identified (both of which to be agreed shortly after contract award).• Present net-cost calculation for each option. Sunk costs and transfer payments should be identified but excluded from the net cost calculation.• To the extent feasible, quantify and monetise the anticipated benefits to society arising from the legislative proposals, considering the economic, social (including health) and environmental benefits for a 25 – year period.• To use, where available, standardised methodologies to quantify the associated benefits. Present the net present value of each policy proposal based on identified costs and benefits.• Identify unquantifiable costs and benefits in the RIA and, where necessary, provide a qualitative description of the likely scale of their impact.• Reflect these findings in a report that will be used as the basis for completing part 2 of the Bill’s explanatory memorandum ahead of introduction to the Senedd, ensuring the report meets the tests set out paragraph 26.6 (viii) and (ix) of the Standing Orders of the Senedd and follows established templates