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Guidance

FCERM grant-in-aid: discount rates and price indices

Apply discount rates and price indices in economic appraisals for risk management authorities (RMAs) and project teams.

Updates to this page

From:
Environment Agency
Published:
22 November 2021
Last updated:
1 April 2026
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  1. Removed text related to capping guidance on landing page and in main guidance as this has been replaced with new guidance.

  2. First published.

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FCERM grant-in-aid: discount rates and price indices

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Capping guidance has been replaced as of March 2026.

This is guidance to support the appraisal of FCERM projects. You should have read the FCERM appraisal guidance manual before using this document.

You can use this guidance to apply the discount rates defined in the Treasury Green Book. Discount rates are used to calculate the present value of a future sum of money. There are 2 rates you can use, depending on the aspect of your FCERM project that you are discounting.

It also explains how to apply price indices to update historical benefit valuations

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