ivo havinga united nations statistics division havinga@un rio conventions pavilion event:

System of Environmental-Economic Accounting

The UN System of Environmental-Economic Accounting (SEEA) and its

implementation in pilot countries

Ivo HavingaUnited Nations Statistics Division

[email protected]

Rio Conventions Pavilion Event: Transformative Initiatives in Biodiversity

Mainstreaming and Financing

16 October 2014


Policy Demand: International Context Agenda 21

Rio+20 outcome document

High-Level Panel Report on the Post-2015 Development Agenda

SDGs monitoring

European legislation

Aichi targets

Natural Capital Accounting

International initiatives• OECD’s Green Growth Strategy, WAVES, VANTAGE, UNEP-led Green

Economy programme, CBD, TEEB


Integrated multi-dimensional statistics Demand for Integrated

statistics which allow coherent understanding for integrated policy

Requires accounting approach and integrated statistical production process

Ensure quality of information and consistency between basic data, accounts and tables and indicators


Integrated multi-dimensional statistics

Transforming sectoral data into integrated policy-relevant information

Interrelations between economy, environment and society through systems approach – SNA and SEEA

Communication and visualization of the story the statistics tell


SEEA: Enabler for the transformative agenda

SEEA - Central Framework

SEEA -Experimental Ecosystem Accounting

Enable integration of biophysical data, monitoring changes in ecosystem and linking those changes to economic and human activity

Inform post 2015 development agenda and SDGs

SNA

Enable partnership at international, regional, sub-regional and national level.


SEEA Conceptual Framework

Activities-Production

-Consumption-Accumulation

Instruments -Financial/Monetary -Taxes/subsidies - Financing -Resource rent -Permits

Economic Units-Enterprises-Households-Government

-Non-profit institutions

Individual Environmental Assets (e.g., land, water, mineral and energy, soil, aquatic)

Ecosystem Assets

Natural inputs

Analytical and Policy Frameworks

-Productivity analysis-Natural resource management

-Climate change-Green Growth/Green Economy

-Post-2015 Development Agenda

Residuals (e.g., emissions,

waste)

Economy

EnvironmentTerritory of reference

Outside territory of reference

Outside territory of reference

Imports/Exports

Transboundary Environmental Flows

Ecosystem services


SEEA Central Framework Internationally agreed

statistical framework to measure environment and its interactions with economy

Adopted as international statistical standard by UN Statistical Commission in 2012

Developed through inter-governmental process

Published by UN, EU, FAO, IMF, OECD, WB


The SEEA Central Framework Accounts1. Flow accounts: supply and use tables for products, natural inputs and

residuals (e.g. waste, wastewater) generated by economic activities. • physical (e.g. m2 of water) and/or monetary values (e.g. permits to

access water, cost of wastewater treatment, etc.)

2. Stock accounts for environmental assets: natural resources and land• physical (e.g. fish stocks and changes in stocks) and/or monetary

values (e.g. value of natural capital, depletion)

3. Activity / purpose accounts that explicitly identify environmental transactions already existing in the SNA. • e.g. Environmental Protection Expenditure (EPE) accounts,

environmental taxes and subsidies

4. Combined physical and monetary accounts that bring together physical and monetary information for derivation indicators, including depletion adjusted aggregates


SEEA Experimental Ecosystem Accounting

Complements SEEA Central Framework

Integrated statistical framework for accounting for ecosystem assets and associated ecosystem services

Important first step in development of statistical framework for ecosystem accounting


Individual & societal well-being

BenefitsSNA & non-SNA

Ecosystem services

ECOSYSTEM ASSET

Ecosystem characteristics Intra-ecosystem flows Inter-ecosystem flows

Human inputs (e.g. labour, produced assets)

Ecosystem processes

Linking ecosystem assets and well-being through ecosystem services


Relationship to SEEA Central Framework

Extends range of flows related to regulatory and cultural services (production boundary) for accounting compared to SNA and SEEA CF in physical and monetary terms

Many flows from Central Framework also included in Experimental Ecosystem Accounting (e.g. flows of timber), but extension of EEA is to attribute flows to spatial areas

Some Central Framework natural input flows are excluded from Experimental Ecosystem Accounting (e.g. mineral and energy resources)


Approach for developing SEEA Experimental Ecosystem Accounting


The SEEA Experimental Ecosystem Accounting brings in two new dimensions:1.Spatial characteristics expressed in spatial units2.Integrated or holistic view of multiple characteristics for each unit

The EEA is focused on living (renewable) natural resources

• Land • Water • Carbon • Biodiversity • Nutrients• Pollution• Human activities• Ecosystem services

Minimum dataset schemeUnifying themes

Image source: http://www.waterencyclopedia.com/La-Mi/Land-Use-Planning.html


Measurement units for social, economic and environmental parameters remain untouched

New accounting and reporting units created for ecosystem accounting purposes

Spatial data perspective: harmonizing reporting units

Overlay of units (UK)


Land account

Wat

er a

ccou

ntCarbon

SEEA-EEA integration framework

BiodiversityBiodiversity Nutrients

Nutrients

Integration of ecosystem services in macroeconomic aggregates, like GDP and NDP

Raw data collection, processing and harmonization

Consistent physical and monetary asset accounts

Land cover/use Accounting unitsAdministrative reg., habitats, ecoregions

Forest Crops

Statistics

Vegetation

Wat

er

Supply

/use

catch

met

s

Ecosystem services in monetary and physical terms

AmenityRisks

Food,Climateregulation

Clean

drinkin

g

water


Hierarchical (nested-grid) aggregation

18

Ecosystem Accounting Unit

(EAU)

Land Cover/Ecosystem

Functional Unit (LCEU)

Basic Spatial Unit (BSU)

Country

State

Region

Statistical Areas

Parcel

Grid cell (e.g. 20m x 20m or 100m x 100m)


GeographyBuilding analytical capability for units and ensure that GIS

standards are maintained

Accounting e.g. unified and

hierarchical classifications and variables for units

(grid)


Asset accounts on carbon:

Statistical data on:1.Forest biomass (FRA, 2000, 2005, 2010)2.Crops harvest (EUROSTAT 2000 – 2010)3.Timber harvest (EUROSTAT 2000 – 2010)4.Livestock (EUROSTAT 2000 – 2010)

Remote sensing products:1.Land cover (CORINE LC 2000, 2006)2.Vegetation (SPOT vegetation NDVI 1999 – 2010)3.Primary production (GPP) and Ecosystem respiration (TER), (NASA, 2000 – 2010)

Modelled data:1. Soil organic carbon (Global map, JRC (Hiederer and Köchy, 2012)

TERGPP

ExportsImports

Source: European Environment Agency and ETC-SIA

Theme unifying a number of components, processes and data sets:


Net ecosystem production = Gross Primary Production – Terrestrial Ecosystem Respiration

Balance of lateral imports and exports= Carbon returns – carbon ‘uses’

The two basic balancing items are designed to summarize ‘vertical’ and ‘horizontal’ carbon transfers

European carbon accounts


Examples: Net ecosystem carbon balance

• On country level the ecosystem carbon accounts should be consistent with IPCC’s in assessing whether ecosystems acted as net source or sink of CO2 for a given period of time.

• The maps shows a decade average, with areas in green indicating prevailing sink (most of Europe) and in red – prevailing source functions (e.g. parts of North West Europe, Po valley in Italy, and spots of forest-burned areas of Portugal).


Advancing SEEA- Experimental Ecosystem Accounting in pilot countries

List of pilot countries (7 countries) Non-exhaustive list of potential associate country pilots

Countries Africa: South Africa, Mauritius Asia: Indonesia, Vietnam, Bhutan Latin America: Mexico, Chile

* Australia* Canada* Ecuador* Netherlands* Norway* Peru (project managed by

Conservation International* Philippines (through WAVES)* Colombia (through WAVES)* United Kingdom* United States


Project activities – Advancing SEEA-EEA

Norwegian funded and joint collaboration between UNSD-UNEP- CBD

Country missions Regional workshops: will gather and exchange experiences from

the country pilots and other initiatives Forum of experts: contacts of people involved in ecosystem

accounting at national level and other (related) initiatives Knowledge base: will include data and materials generated in the

course of guidelines development and country missions Research agenda: addressing challenging issues (for ex.

mainstreamed classification of ecosystem services) Guidance and training material Global strategy for SEEA EEA


Management and governance

Recognize multi-agency requirements and harnessing existing knowledge

Technical committee under the auspices of the UNCEEA responsible for:

▫ Coordinate and advance the research agenda on the basis of lessons learnt from testing with the objective of developing best practices and in the longer term mainstreaming


Short term priorities Spatial units

• Scaling and aggregation methods

Methods for measuring ecosystem services and assets• Classification of services and link to ecosystem condition

Presentation and accounting structure• Dissemination, including visualisations

Linking to socio-economic data• Integration of scales

Valuation of ecosystem services


Medium to long term priorities Accounting concepts

• Degradation – valuation and allocation• Integration of ecosystem values into standard accounts and balance sheets

(links to wealth a/c)• Treatment of expenditures on ecosystems

Connections between ecosystem services and ecosystem condition• Often seen as competing approaches• SEEA EEA sees clear links but they are complex and non-linear

Aggregation and ecosystem-wide indicators• Most challenging aspect: needs to build and combine all other research and

testing work


Building on existing initiatives

SEEA and WAVES• WAVES uses as entry point the Ministries of Planning

or Ministries of Finance – focus on institutional arrangements and policy applications

• SEEA – UNSD uses the NSOs as entry points and has as objective to assist countries in developing an integrated statistical system to support the implementation of the SEEA


SEEA and TEEB

TEEB focuses on answer specific policy questions in specific geographical areas

Objective is to raise awareness of the issues through using valuation

Broad ranges of types of projects Working with SEEA with UNSD taking the lead

in supporting countries in the SEEA implementation in the countries of the project


SEEA and BIOFIN

BIOFIN has the objective of bringing together different stakeholders and make an assessment of the financing for biodiversity (e.g. financial gaps, etc.)

Developing a taxonomy on biodiversity expenditures, taxes, subsidies

SEEA – UNSD is working with BIOFIN to align the taxonomy with the standard classifications of environmental activities


SEEA CF Accounts

Ecosystem Accounts

Accounts for environmental activities and transaction


SEEA and CBD

Aichi Target 2 is about mainstreaming biodiversity into national accounts

SEEA has been recognized as the statistical framework for measuring and monitoring ecosystems and biodiversity into an accounting approach

CBD partner in the project


SEEA and Green economy initiatives

OECD recognized the SEEA as the statistical framework for green growth indicators

SEEA informs many of the green economy policies

SEEA working in Mauritius with PAGE (Programe of Action for Green Economy)


National and international communities must join hands in advancing the work!

ivo havinga united nations statistics division havinga@un rio conventions pavilion event:

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