Environmental accounting A system approach to environmental information

Environmental accounting A system approach to environmental information United Nations Statistics Division

Outline • • • SEEA and supporting suite of publications SEEA and the system approach SEEA and the ecosystem approach SEEA and the DPSIR framework SEEA and the FDES

The SEEA and supporting suite of publications Energy balances Other water statistics SEEA Systems frameworks SEEA-W SEEA-E Output frameworks Input frameworks Cross functional frameworks Intermediate frameworks e. g. IRWS e. g. IRES Compilation Material ISIC, CPC, Asset Classification, Class. of Environmental Activities, Class. of Physical Flows etc Data Quality Assessment Frameworks Metadata and documentation (e. g. SDMX)

The SEEA and the system approach • Systems can be represented as a series of stocks and flows • The system approach is used by – the System of National Accounts – the System of Environmental and Economic Accounting (SEEA) • The SEEA is a multipurpose system for measuring: – The interactions between the economy and the ecosystems • e. g the flow accounts – The interactions within the environment/ecosystems (natural processes) • e. g. asset accounts - changes in stocks (due to human activities and natural causes) – The state of the environment, including quality • e. g. asset accounts – land use/land cover accounts, water asset accounts, forest accounts • The SEEA organises information in terms of stocks and flows

SEEA and the system approach Data Producers NSOs, Environment agencies and others Environment/ Ecosystems Economy Satellite SNA vs System approach SEEA Stocks & Flows e. g. Finance Ministry Data users Greater spatial & temporal disaggregation Environment agencies and others

SEEA and the system approach Data Producers NSOs, Environment agencies and others Environment/ Ecosystems Economy Satellite SNA vs System approach SEEA Stocks & Flows Greater spatial & temporal disaggregation A majority of measurement and methodological issues have been resolved Significant measurement and methodological issues remain There is a significant body of accounting practice There is much less accounting practice e. g. classification of ecosystems services, quality accounts

SEEA and the system approach Data Producers NSOs, Environment agencies and others Environment/ Ecosystems Economy Satellite SNA vs System approach SEEA Stocks & Greater spatial & temporal disaggregation Flows Classifications SNA 2008/SEEA-2003 §Produced assets §Cultivated biological resources § e. g. Timber • Non-produced assets • Non-cultivated • e. g. Timber Ecosystems approach While the §Terrestrial classifications differ, they cover the same §Forest information in some §Forestland §Timber (from cultivated cases e. g. timber and non-cultivated) §Other services

SEEA and the system approach Data Producers NSOs, Environment agencies and others Environment/ Ecosystems Economy Satellite SNA vs System approach SEEA Stocks Human capital & Flows Social capital Greater spatial & temporal disaggregation Human capital and social capital are not addressed by either the SNA or the SEEA

Is it necessary to have both “E”s in the SEEA acronym? System of Environmental Economic Accounting

SEEA and the DPSIR framework – climate change Use as sink, extraction, Economic activity and population growth e. g. National accounts, energy flow accounts, agricultural accounts, land use / cover acc’s harvest, or catch of natural resources, e. g. Air emission accounts, flows of carbon Pressure Driving force Response Money spent to protect the environment e. g. Env. protection expenditure accounts (incl. mitigation/adaptation exp), env. goods and services sector, env. taxes, env. subsidies, emission permits The physical quantity of resources, the quality of the environment and the size and extent of ecosystems and areas e. g. Asset acc’s including land use and land cover acc’s State Impact Depletion and degradation of the environment e. g. Water acc’s, forest acc’s, fisheries acc’s, land ecosystem acc’s

Framework for the Development of Environment Statistics (FDES) • The FDES is intended to be a conceptual framework to define the scope of environment statistics • It has been suggested that the SEEA can not handle: – Social links (these are not covered by either the SNA or SEEA) – Natural processes (methods and practice lacking) – Issues of environmental quality (methods and practice lacking) • As consensus emerges, natural processes and environmental quality can be covered by the system approach and SEEA standard accounts

Conclusions • SEEA is the conceptual framework for environmental information – system approach • SEEA and FDES are complementary and not competing frameworks – FDES to communicate/disseminate the information to fit the needs of different audience/uses – Ecosystem approach is consistent with the SEEA – SEEA multi-purpose statistical framework for organizing environmental information – Categories and variables should be seen in the context of the entire system – i. e. system approach – The development of environment statistics and accounts should be a staged approach

For more information • Contact us: seea@un. org • See the UNSD website: • http: //unstats. un. org/unsd/envaccounting/default. asp – Environmental Accounting Archive (Includes national and international examples) • http: //unstats. un. org/unsd/envaccounting/ceea/archive/Introduction. asp – Towards the revision of the SEEA • http: //unstats. un. org/unsd/envaccounting/seearev/ – The London Group • http: //unstats. un. org/unsd/envaccounting/ceea/default. asp – The United Nations Committee on Environmental and Economic Accounts (UNCEEA) • http: //unstats. un. org/unsd/envaccounting/londongroup/