Ecosystem Natural Capital Accounting (3) Presentation of ...
Green GDP – Accounting for Ecosystem Services
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Transcript of Green GDP – Accounting for Ecosystem Services
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Green GDP – Accounting for Ecosystem ServicesMark Eigenraam , Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global • Guiyang, China, 2013Dialogue on Forestry in the context of Economic-Civilisation
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A brief history…
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Vegetation policy - “Net Gain”
2002
2013
2007
2005
2012
• Native Vegetation Credit Register• BushBroker
OFFSETS
• BushTenderINVESTMENT
http://www.dse.vic.gov.au/land-management/victorias-native-vegetation-management-a-framework-for-action
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A brief history…
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Vegetation type, extent and condition mapping
2002
2013
2007
2005
2010
http://mapshare2.dse.vic.gov.au/MapShare2EXT/imf.jsp?site=bim
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A brief history…
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ecoMarkets• Payments for multiple ecosystem services
EnSym• Environmental modelling
2002
2013
2007
2005
2012
https://ensym.dse.vic.gov.au/cms/
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More recently…
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Victorian Environmental Partnerships
2002
2013
2007
2005
2012
http://www.depi.vic.gov.au/environment-and-wildlife/environmental-partnerships
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Offset reform
2002
2013
2007
2005
2012
http://www.depi.vic.gov.au/environment-and-wildlife/biodiversity/native-vegetation
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Victorian Experimental-Ecosystem Accounts
“establish internationally recognisable environmental accounts that improve the way we allocate resources”
(Environmental Partnerships: Priority 8, 2012)
2002
2013
2007
2005
2012
https://ensym.dse.vic.gov.au/cms/index.php?option=com_content&view=article&id=60&Itemid=71
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Current context
• What does it mean for business, government and the economy?
– New ways to connect the economy with the environment!
– Environmental markets – opportunities for investment
– Environmental accounts – opportunities to understand ecosystem services natural capital provides and invest for the future
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National Statistics
Environment
Economy
System of Environmental-Economic Accounts (SEEA)
SNA
Society
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ASSET
ASSET
ASSET
SEEA Central Framework (CF)
1. 2. 3.
http://unstats.un.org/unsd/envaccounting/seearev/
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Spreadsheets & charts7.16 Economic demonstrated stock of timber, Physical
7.17 Value of timber resources, Monetary
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ASSET
Services
Services
Services
SEEA Ecosystem Accounts
Services
Victorian approach to Ecosystem Accounts
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Victorian Ecosystem accounting concepts
InterFlows (input)
InterFlows (output)
ECOSYSTEM
EcosystemServices (output)
Inputs/Residuals
ECOSYSTEMECONOMY/
SOCIETYIntra flowsIntra flows
Eigenraam et al., 2012
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Gross Ecosystem Product (GEP)
*) Eigenraam et al., 2012
Step Gross Domestic Product (GDP) Gross Ecosystem Product (GEP)*
1 Estimate the Gross Output of various economic activities
Estimate the Gross Ecosystem Output (clean air, water, etc) from an ecosystem asset (sum of ecosystem services and inter flows)
2 Determine the intermediate consumption, i.e., the cost of material, supplies and services used to produce goods or services
Determine the inputs (inter-flows) to the asset, i.e., pollination, habitat, water, nutrients used to produce Gross Ecosystem Output
3 Deduct intermediate consumption from Gross Output to obtain the Gross Value Added (summed for all businesses is GDP)
Deduct inputs from Gross Ecosystem Output to obtain the Gross Ecosystem Product
4 Deduct depreciation from Gross Value Add to obtain Net Value Added
Deduct depreciation (degradation) from Gross Ecosystem Product to obtain Net Ecosystem Product
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Gross Ecosystem Product
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Inter flows (3.5 t/y nutrients)
FORESTInter flows
(2.5 t/y nutrients)
Intra flows
Inter flows (3.5 t/y nutrients) FOREST
Inter flows(1 t/y nutrients)
Intra flows
The ecosystem (FOREST) is improved to process more nutrients
GEP = 2.5 t/y
GEP = 1 t/y
Change GEP = 1.5 t/yEcosystem Service
- Clean water
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Green GDP• Develop indices of GEP to inform Green GDP
– Clean air, erosion control, habitat, nutrient processing, etc
• Link changes in GEP to: – Changes in income (Green GDP) – Changes in environmental and ecosystem asset condition (degradation,
depreciation)– Other measures of social wellbeing
• Accounting for Ecosystem Services– Both the SEEA CF and SEEA EA provide a strong foundation to move
forward
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