3 rd UNCEEA Meeting New York 26-27 June 2008 Ecosystem Ecosystem accounts within SEEA revision An...

3rd UNCEEA MeetingNew York 26-27 June 2008

Ecosystem Ecosystem accounts within SEEA revision

An EEA proposal

Third Meeting of the UN Committee of Experts onEnvironmental-Economic Accounting

New York, 26-27 June 2008

“Global warming may dominate headlines today.

Ecosystem degradation will do so tomorrow”

Corporate Ecosystems Services review, WRI et al. March 2008


What’s at stake – human and planetary well beingM

illenn

ium

Eco

syst

em A

sses

smen

t

Ecosystem integrity

(functions, biodiversity, résilience…)

Ecosystem services

Economy

Society

Human wellbeing, poverty alleviation

Direct drivers of change

Climate Change

land use, resource use, species, technology


Application of ecosystem accounting foreseen for…

• MA follow-up 2015 (in Europe: Eureca! 2012)• IPBES, The Intergovernmental Platform on

Biodiversity and Ecosystem Services• Adaptability to Climate Change• EU’s Thematic Strategy Sustainable Use of Resource

(“basket” of 4 headline indicators)• ESEA, European Strategy for Environmental Accounting• European Data Centers related to land and ecosystems• Beyond GDP (natural K in physical units, inclusive final

consumption, full cost of goods & services, of imports...)• TEEB, The Economics of Ecosystems & Biodiversity• IPES, International Payments for Ecosystem Services• National initiatives (accounting, ecosystem assessment,

mitigation banking…)• Corporate accounting guidelines for environmental liability


The economic questions behind ecosystem accounting

• Risks of unsustainable use of the living/cycling natural capital are ignored: the negative impacts of over-harvesting, force-feeding with fertilisers, intoxication, introduction of species, fragmentation by roads or dams, or sealing of soil by urban development have no direct monetary counterpart in GDP or corporate accounts.

• The natural capital is not even amortised in accounting books of companies and in the national accounts – no depreciation allowance is made for maintaining ecosystems’ critical functions and services. The full cost of domestic products is not covered in many cases by their price.

• This is as well the case of the price of imported products made from degraded ecosystems: their full cost is not covered by their price.

• The actual value for people of free ecosystem services is not accounted in their final consumption (the market tells: price = zero).


Amvrakikos, Greece: Wetland management, Water & Fish

Accounting for ecosystem costs and benefits at different scales…

Global scale

National & regional government, European market

Action level, local scale

Doñana, Spain: Water, Wetland & StrawberriesMigratory Birds Flyways, Wetlands & Bird Flu Prevention


1990

LEAC/ Landscape Ecological Potential 1990-2000, 1km² grid (Source: Ecosystem Accounting for Mediterranean Wetlands, an EEA feasibility study for TEEB)

Change 1990-2000

… & accounts for connecting different scales

Legend

Camargue Regional Park, France

Change in net LEP 1990 to 2000

1 km² grid, range : -100 to +100

Improvement/ Highest : 47

Degradation/ Lowest : -33

Natural Park of Camargue (France)Natural Park of Camargue (France)


Central role of the SEEA framework

Global monitoring programmes

International statisticsSimplified accounts

Global scale,

framing & monitoring of International Conventions and markets (IPES)

Clearing house on tariffs

Beyond GDP Accounting

(statistical offices, environmental agencies…)

SEEA 2012SEEA 2012

FrameworkFramework

National & regional government

Implementation by municipalities, agencies, business

Guidelines, accounting chartsAction level, local scale, business, projects, case studies


Working Group“Integrating biodiversity into

corporate strategies”

3.3 Le « bilan biodiversité » des entreprises

Un système comptable pour une responsabilité écosystémique des organisations

A. Au niveau de l’entreprise individuelle (cf. entité juridique)• Mettre en évidence les flux monétaires // systèmes vivants dans les bilans annuels et

comptes de résultats • Mettre en évidence les flux non monétaires de consommation des ressources (cf. éco-

efficience énergétique et matérielle)• Fournir des explications quantitatives et qualitatives sur la nature des interactions en

termes de coévolution avec la biodiversité

B. Au niveau des relations interentreprises• Élargir les démarches précédentes aux filières d’approvisionnements / filiales et

réseaux de firmes (approche de type Analyse de Cycle de Vie) • Participer à la comptabilité des écosystèmes (marins et terrestres) => Évaluer des

coûts de gestion et de restauration imputables à l’entreprise

C. Investir individuellement et collectivement dans des mécanismes de co-viabilité

• Repenser les processus de production, d’approvisionnement, de communication, de formation, etc.

• Innover simultanément en termes de technologies, de modes d’organisation (ex. logistique, standards EDI, etc.) et d’institutions

• Ex. d’innovations institutionnelles : neutralité fiscale, marchés de droits, etc.

An accounting system for an ecosystem liability of

organisations

“Participate in ecosystem

accounting (marine and terrestrial)

Assess management and restoration costs

chargeable to companies”

Ecosystem accounting at the action scale, an example


Supply of commodities

Stocks & flows, Integrity, BiodiversityFunctional Landscape

RegulatingClimate, floods, soil formation,

carbon sequestration, air quality, water quality, pest and diseases

control, pollination, invasion resistance, habitat provisioning

SupportingPrimary production

Water cycleBiogeochemical cycles

ProvisioningFood, water, fibre, wood, fuel,

medicines

CulturalAesthetics, tourism, spiritual, education, research, traditional

knowledge

Non nature-based sources of goods

and services

Insurance value Market & nonmarket values

Main

ten

an

ce / re

stora

tion o

f natu

ral ca

pita

l

Mostly negative

feedbacks

Adapted from Scholes, 2007, Lomas, 2007

Use of commodities& non-produced services

Ecosystem and servicesClassification of ecosystem services


Ecosystem assets

Provisioning M S

Cultural M S

Regulation Regulating M S

C

Ecosystem Services

Ecosystem Services Valuation

Internal functions

Support to ES functions

ES used as part of commodities

Final use of non market ES

Ecosystem maintenance and restoration costs (to offset depreciation)

Ecosystem services valuation

Accounting for ecosystem services value & sustainability

Distance to stated targets & additional maintenance/restoration

costs

Capital stocks and functions

Services

Market values

Physical measurement and shadow prices


Social Dimension of Ecosystem Accounting: Spatial integration of ecosystems, land use, services, & population

Services 1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5

Land cover types Fo

od

Mat

eria

ls

Fo

rest

tre

es-

rela

ted

Pla

nt-

rela

ted

Ph

ysic

al

sup

po

rt

Am

enit

y

Iden

tity

Did

acti

c

Cyc

lin

g

Sin

k

Pre

ven

tio

n

Ref

ug

ium

Bre

edin

g

Artificial surfaces/ Urban

Arable land & permanent crops

Grassland & mixed farmland

Forests & woodland shrub

Heathland, sclerophylous veg.

Open space with little/ no vegetation

Wetlands

Water bodies

YY

YY

YY

YY

YY

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YY

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LEAC/Land cover accounts as basic infrastructure


LEAC: from changes to flows of land cover

LCF3

LCF1

LCF2

LCF5

LCF4

LCF7

LCF6

LCF8

Change Matrix(44x43=1932

possible changes)summarized into

flows

LCF9

Corine land cover types 1 2A 2B 3A 3B 3C 4 5

Land cover flows

Art

ific

ial a

reas

Fo

rest

ed la

nd

Wet

lan

ds

Wat

er b

od

ies

LCF1 Urban land management 737 15 19 0 8 0 0 780LCF2 Urban residential sprawl 1924 1867 200 145 8 3 2 4149LCF3 Sprawl of economic sites and infrastructures 77 2728 1595 665 451 35 22 53 5627LCF4 Agriculture internal conversions 17252 10062 27314LCF5 Conversion from other land cover to agriculture 273 935 1796 1734 155 96 50 5039LCF6 Withdrawal of farming 2393 2860 5253LCF7 Forests creation and management 254 35803 5166 1048 1063 3 43337LCF8 Water bodies creation and management 191 252 253 117 190 17 21 1042LCF9 Changes due to natural & multiple causes 311 44 15 1317 1323 1041 229 252 4534

No Change 160016 1149717 802502 990736 255914 50289 45502 45473 3500149

LCF1 Urban land management 780 780LCF2 Urban residential sprawl 4149 4149LCF3 Sprawl of economic sites and infrastructures 5627 5627LCF4 Agriculture internal conversions 15695 11619 27314LCF5 Conversion from other land cover to agriculture 2450 2590 5039LCF6 Withdrawal of farming 1124 2792 1244 23 70 0 5253LCF7 Forests creation and management 42547 766 24 43337LCF8 Water bodies creation and management 21 1021 1042

No Change 160016 1149717 802502 990736 255914 50289 45502 45473 3500149

199

0

2000


Natural capital• Natural capital stocks, resilience (physical units, by sectors)• Natural capital consumption/maintenance & restoration costs (physical units and €)• Ecosystem assets inclusive wealth (€)

Supply & use of ecosystem goods and services(Use of resource by sectors, supply to consumption & residuals, accumulation, I-O analysis, NAMEA)

Functional Ecosystem Services• Incorporated into products (€)• Free end use ES (physical units, €)

Framework of Ecosystem Accounts

Natural Capital Accounts/ living & cycling natural capital

Accounts of flows of ecosystem goods and services

Ecosystem Stocks & State Accounts

Eco

syst

em t

ypes

Economic sectorsSpatial integration

Economic integration

Counts of ecosystem health/resilence

(diagnosis by ecosystem types)

Core accounts of assets & flows

(by ecosystem types, raw quantities)

Land coverRiversSoil, sea, atmosphereComponents: water, biomass, C, N P,

species…

Material/energy flows(biomass, water, nutrients, residuals…)


Environmental Expenditures, Taxes

SNA/SEEA Integrating Ecosystems Physical flows

Monetary flows/valuation

Assets valuation

Material & Energy FlowsEcosystem

Assets[stocks and resilience]

Rest of the World

Subsoil Assets[stocks]

Ecosyste

m

ServicesEcosystem Additional

Maintenance Costs

Ecosystem

Functional Services

SNA flows & assets

Ecosystem AdditionalMaintenance

Costsin Imports

(less in Exports)

Assets / Natural capitalEcosystem Assets

[stocks and resilience]Subsoil Assets

[stocks]

NAMEA


SEEA2003: enlargement of SNA1993 for a better description of the economy-environment relation

Natural resources EcosystemsEconomic

assets (SNA)Non-economic

assets

Openingstocks

Openingstocks

OpeningState

SNAtransactions

and otherflows

Changes instocks

Changesin stocks

Economicactivities,

naturalprocesses,

etc.

Changesin state

Closingstocks

Closingstocks

Closingstate

Described in SNA

RM HASSAN - UN The System of Environmental and Economic Accounting (UN 2003) - RANESA Workshop June 12-16, 2005 Maputo

Volume 1

Statistical Standard

Volume 2

Non Standard Accounts

Volume 1

Statistical Standard

NAMEA, expenditure,

physical quantities, sub-soil, energy,

value of economic assets

Volume 2

Non Standard Accounts

ecosystems, quality,

valuation…

Revision SEEA2012

Macro-ecological closure

(non-linear feedbacks, spatial issues)

Impacts on ecosystems & related services/benefits


EEA’s proposal

• Publish SEEA volume 2 (version 1) at the same date as volume 1 SEEA full picture in 2012

• Steer volume 2 project and editing: ecosystem accounts (see next slide); qualitative aspects assets possibly treated in Volume 1

from a quantitative perspective; valuation issues related to ecosystem “degradation”,

“depletion” being part of Volume 1; other items will be postponed…

• Review edition with London Group & international panel of experts

• Look after projects related to ecosystem accounting (TEEB, headline indicators, MA…)

• Report to London Group & UNCEEA


1st Draft outline for ecosystem accounts in SEEA revision

Part A - Overview and accounting framework Chapter 1. Objectives, system analysis, main featuresChapter 2. Implementation of ecosystem accountsChapter 3. Synthesis and Reporting

Part B - Accounts by dominant ecosystem types Chapter 4 Land cover accounts Chapter 5 Urban ecosystems Chapter 6 Cropland systems Chapter 7 Pasture, mosaics and natural grassland systems Chapter 8 Forest ecosystems Chapter 9 Non cultivated dryland, sparse vegetation and bare soils Chapter 10 Wetlands Chapter 11 Lakes and rivers Chapter 12 Soil Chapter 13 Sea Chapter 14 Atmosphere Chapter 15 Regional approaches (mountains, coastal zones, islands,

catchments, biogeographic zones)

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