Natural capital in the SEEA Central Framework Applications

Natural capital in the SEEA Central Framework Applications for the Netherlands Sjoerd Schenau

Outline • Overview of environmental accounting: SEEA • Natural capital in SEEA • Depletion adjusted aggregates • Degradation • Application: monitoring green growth in the Netherlands Natural capital in SEEA 1

Overview of environmental accounting: SEEA • SEEA measures the interdependency of the economy and the environment by integrating economic, environment and energy statistics • SEEA: satellite system of the National accounts • Same classifications and definitions but conceptual variety: • Production or asset boundary • Various categories of accounts: • Physical flow accounts • Natural resource accounts (Resource use & stocks) • Env. Activity accounts (environmental taxes, CO 2 -permits and env. related subsidies) • SEEA Central Framework: adopted by UN Statistical Commission in 2012 as international statistical standard Natural capital in SEEA 2

Natural capital in SEEA Environmental assets are the naturally occurring living and nonliving components of the Earth, together comprising the biophysical environment, that may provide benefits to humanity. Two perspectives: • SEEA Central framework: focus is on individual components of the environment that provide materials and space to all economic activities. • SEEA Experimental Ecosystem Accounts: focus on the benefits obtained from environmental assets, including both material and non-material benefits. The measurement focus is on ecosystems. Natural capital in SEEA 3

Asset accounts • Opening and closing stock of environmental assets and the different types of changes in the stock over an accounting period. • Information from asset accounts can be used to assist in the management of environmental assets • Valuations of natural resources and land can be combined with valuations of produced and financial assets to provide broader estimates of national wealth Natural capital in SEEA 4

Example: energy reserves in physical and monetary units Source: Statistics Netherlands 2011 (current price) Natural capital in SEEA 5

Depletion • In SNA: Natural resources (e. g. forest; oil and gas) income is recorded in full without a charge for cost of depletion (technically: depletion included in capital account, but not in current accounts) • Mismatch with fixed assets which are depreciated • Sustainability issue: incorrect signals as future production possibilities are hampered. • In SEEA: balancing items of the current accounts, such as net income and savings are adjusted for depletion. Natural capital in SEEA 6

Example: depletion adjusted national income for oil and gas reserves Natural capital in SEEA 7

Degradation in SEEA-CF: physical flow accounts Economy natural inputs Production Environment products Consumption residuals Natural capital in SEEA 8

Environmental pressure indicators Weighting of pollutants based on expected impacts: Greenhouse gases (CO 2, CH 4, N 20, . . ) Acid emissions (SO 2, NOX, . . ) Nutrients (N, P) Solid waste • Direct comparability with GDP • Industrial breakdown (≈ 58 industries) Natural capital in SEEA 9

Example: Decoupling greenhousegas emissions and GDP Natural capital in SEEA 10

Application: measuring green growth Objective: • Assess the state of green growth in the Netherlands • Benchmark for a more thorough and comprehensive assessment of green growth in the future Point of departure: OECD indicators • Data availability • Robustness of indicators • Relevance for the Netherlands à List of 20 relevant indicators • In 2012: list of indicators being revised Natural capital in SEEA 11

Conceptual scheme Green Growth (OECD) Natural capital in SEEA 12

SEEA as a data source Natural capital in SEEA 13

Interactive infographics for green growth Natural capital in SEEA 14

More information: • Annual publication : Dutch environmental accounts • Statline (www. cbs. nl) • Website: http: //www. cbs. nl/nl- NL/menu/themas/natuurmilieu/publicaties/milieurekeningen/default. htm • Green growth infographics: http: //www. cbs. nl/en. GB/menu/themas/dossiers/duurzaamheid/nie uws/default. htm Natural capital in SEEA 15

Thank You ! Questions / Remarks? Sjoerd Schenau s. chenau@cbs. nl Natural capital in SEEA 16