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Water Accounts at the EEA Jean-Louis Weber Special Adviser on Economic Environnemental Accounting European Environment Agency

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Presentation on theme: "Water Accounts at the EEA Jean-Louis Weber Special Adviser on Economic Environnemental Accounting European Environment Agency"— Presentation transcript:

1 Water Accounts at the EEA Jean-Louis Weber Special Adviser on Economic Environnemental Accounting European Environment Agency International Resource Panel Water Footprint and Accounting Writing Workshop 4-6 April 2011 European Environment Agency (EEA) and United Nations Environment Programme (UNEP) Copenhagen, Denmark

2 Water accounts at the EEA Support to EEA reporting activities on water use and state Integration of the European information system on water (WISE, ECRINS) Support to the implementation of the European Water Framework Directive/ WFD Implementation of the UN-SEEA Water in Europe (altogether with Eurostat) Development of ecosystem capital accounts in relation to the SEEA revision and in response to policy demands for natural resource and macro-economic instruments (GDP and Beyond, Resource Efficiency Strategy...)

3 Support the implementation of the European Water Framework Directive Water Framework Directive key aims: expanding the scope of water protection to all waters, surface waters and groundwater achieving "good status" for all waters by a set deadline water management based on river basins "combined approach" of emission limit values and quality standards getting the prices right getting the citizen involved more closely streamlining legislation With a single system of water management: River basin management DGENV requests water accounts to support WFD reporting

4 Resource efficiency = sparing materials & energy (technology, consumption patterns) Resource efficiency = ecological management of land, soil & water, ecosystem capital maintenance Macro-economics: GDP growth and the need to account for natural resource use & ecosystem capital degradation 4.7 Mio km Mio km3 Use of accessible freshwater resource (today 54%) Beyond GDP 2008 Stiglitz-Sen-Fitoussi report 2009 TEEB WAVES/ WB Partnership SEEA2003 / rev

5 GDP: Concerns about meaning and measurement Bertrand de Jouvenel 1968: Because National Accounts are based on financial transactions, they account nothing for Nature, to which we dont owe anything in terms of payments but to which we owe everything in terms of livelihood. Early green GDP adjustments: how to maintain national income when natural resource are depleting (the weak sustainability)? What are the good and bad components of GDP? (the first SEEA1993 – no implementation) More recently: Beyond GDP Conference, Brussels 2008: keep GDP but supplement it with indicators TEEB, 2008, GDP of the Poor Commission on the Measurement of Economic Performance and Social Progress (Stiglitz report), Paris 2009: National Income is more important than Gross domestic Product; Social distribution of Disposable Income still poorly addressed; dual issue of sustainability: overconsumption/ underinvestment Capital approaches: – Early attempts at the World Bank: Genuine or Adjusted Net Savings – Multi-capitals approaches of sustainable development: man-made, financial, natural, human, social – Ecosystem approaches: Green Accounting for Indian States Project, Simplified Ecosystem Capital Accounts (EEA), SEEA revision...

6 SEEA: Water accounts cover many aspects, interconnected and interconnecting Ecosystem accounts Services & Natural assets accounts

7 UN manual for environmental-economic accounting: SEEA2003 Enlargement of the System of National Accounts RM HASSAN - UN The System of Environmental and Economic Accounting (UN 2003) - RANESA Workshop June 12-16, 2005 Maputo Part 1 The SNA satellite accounts for the environment expenditure, taxes, hybrid accounts, physical flows, sub-soil, energy, water, land, economic assets depletion Part 2 Ecosystem capital accounts Ecosystem stocks and quality, ecosystem services, benefits and maintenance costs… Revision SEEA2012/13 Negative feedbacks of ecosystem degradation on production and wellbeing Impacts on ecosystem capacity of delivering services/benefits

8 Ecosystem Services and Water in the draft Common International Classification of Ecosystem Services (CICES) Source, CICES proposal, Roy Haines-Young and Marion Potschin, eds, EEA, 2010

9 GDP Healthy ecosystem Ecosystem capital Economy Simplified ecosystem capital accounting circuit ES economic benefits () Sustainable use Non-sustainable use ES economic benefits () Ecosystem degraded by over-use GDP & Adjustments: Real Net National Income Final Consumption at Full Price Non-paid costs still needed to remediate ecosystem degradation () ES economic benefits () Natural resources, ecosystem services ( )

10 Simplified ecosystem capital accounts Physical accounts firstly, followed by valuation of restoration costs and benefits supported by main ecosystem services All ecosystems: land/sea/atmosphere, and for land: urban, agriculture, forest, other natural land, inland water, and soil. Focus on ecosystem degradation and sustainable services Feasible NOW – keep it simple Dont miss important issues: need a good checklist 6 indexes for 1 diagnosis: – 1-Land // 2-Biomass // 3-Water // 4-Biodiversity // 5-Dependency from external inputs // 6-Disease prevalence – Multi-criteria diagnosis (instead of mere additions) and quantification: the ecosystem distress syndrome approach combined with basic balances fast tract implementation of ecosystem capital accounts in Europe Jean-Louis Weber, CBD Conférence, Libreville, 16 Septembre 2010

11 Importance of accounting by relevant functional units to measure impacts (e.g. catchments) The total water resource of the country 10 lakes distributed over 2 catchments. The western catchment with 2 lakes is close to a scarcity threshold while water resource is abundant in the eastern catchment (8 lakes). Scenario 1: 1 lake is lost in the east Scenario 2: 1 lake is lost in the west. Resource loss of 1 lake in the eastern catchment (a)Aggregated national loss (without catchments): (10-9)% = 10% (b)National average of loss by catchments: (2-2)% + (9-8)% 2 = 5.5% Resource loss of 1 lake in the western catchment (a)Aggregated national loss (without catchments): (10-9)% = 10% (b)National aggregation of loss by catchments: (2-1)% + (9-9)% 2 = 25% West East

12 Need relevant time frame for monitoring impacts on ecosystems: e.g. water resource/demand Mean annual resource is in both cases > mean annual demand No water shortage in case 1, important seasonal stress in case 2 12

13 Ex. FR, mid-1990,s, fast track computation river quality from maps (Source: Crouzet, Le Gall and Germain, IFEN) Quality matters as much as Quantity Many other countries have similar quality maps

14 Actual and virtual water trade between European river basins + Europe in the Global Ecosystem Actual & virtual water embedded into trade vs. water footprint impact (virtual water from non-sustainable origin) Source: José Manuel Naredo Pérez (Coordinador) et. al., El agua virtual y la huella hidrológica en la Comunidad de Madrid © Canal de Isabel II Evolution of the hydrological footprint per capita of the Community of Madrid (m3 per inhabitant per year)

15 Need for thematic integration of water accounts with land, bio-carbon & biodiversity Much of the increased NPP in semi-arid Spain is due to new irrigations (water taken from aquifers or directly from rivers …) and land development More NPP brings functional simplification of the ecosystem; Such causal relations should be reflected in the biodiversity account (but the species responses are usually delayed due to natures buffering capacity) (from Emil D. Ivanov, EEA-ETC LUSI) need for integrated monitoring and ecosystem accounting Example from southern Spain: NPP increase in dry region and water stress

16 Definition, mapping & classification of ecosystem capital units used for ecosystem capital accounting (Socio-Ecological Landscape Units - SELU), starting from river basins 1- river basins and 2- relief Courtesy Emil D. Ivanov, Oscar Gomez, 2011

17 Definition, mapping & classification of socio-ecological landscape units (SELU) 3- dominant landscape types (urban, intensive agriculture, mosaics, grassland, forests, other natural types and no-dominance) Courtesy Emil D. Ivanov, Alex Oulton, 2011

18 Application: NECB (net ecosystem carbon balance) here mean NECB value by SELUs within river basins boundaries Emil D. Ivanov, Jean-Louis Weber, 2011

19 Fast track implementation of ecosystem capital accounts: simplified basic water balance Precipitation * - Spontaneous Real EvapoTranspiration ** + Net infiltration to soil/subsoil *** + Inflows from upstream runoff + Returns of used water & irrigation µ = Available water resource -Use of water by activities & households µ -Evapotranspiration by activities = River basin runoff Sources: * Meteo ** Modelling from meteo data, land cover & NDVI *** Hydrogeological modelling µ Estimation from land cover & socio-economic statistics Bold Ital: accounting balances Precipitation Evapotranspiration Use Runoff Meteo data

20 Precipitation Spontaneous Real Evapo-Transpiration Fast calculation for 3 Guadiana River sub-basins Available water resource AgricultureConsumption by irrigation PopulationWater use / population Estimated runoff Source: EEA, Corine land cover, ECRINS – Estimations from various sources by Oscar Gomez Prieto & Jean-Louis Weber

21 Water quantity & quality data exist at the Global scale Source: Global threats to human water security and river biodiversity, CJ Vörösmarty et al. Nature 467, (2010) doi: /nature09440 Meteo data Other EO data FAO water statistics Water Footprint database + ….

22 Economics: example of full cost accounting in response to WFD Environmental Cost of the WFD = CAR1 + CAR2 + CAR3 Cost of the effective measures for meeting the objetive of the WFD considered in the Programe of Measures of River Basin Management Plan Cost of measures for mitigating impacts of uses over the water bodies CAR1 Cost of measures of ecosystem restoration CAR2 Cost of measures for resource procurement CAR3 recovery DA1 DA3 DA2 PHYSICAL ACCOUNTSMONETARY ACCOUNTS Degradation of water quality Impacts on water use Impacts on ecosystems Physico-chemical objectives Biological & hydro-morphological objectives Joan Escriù Water Agency of Catalunya Courtesy Joan Escriu

23 Water Economics and Ecosystem Accounts at the EEA: Template for collating WFD economic data for the water account fast-track pilot project (1) Source: Water Economics and Ecosystem Accounts, Elements from the final study report dealing with the fast-track initiative – Pierre Stroesser et al. for EEA, Framework contract No. EEA/IEA/09/002, 2010

24 Water Economics and Ecosystem Accounts at the EEA: Template for collating WFD economic data for the water account fast-track pilot project (1)

25 The benefits side: first step of the calculation of inclusive sustainable benefits from the services of an ecosystem (e.g. agro-system, forest, fishery, hydrosystem...) Backward GVA/GDP effects by sector: Total quantity of Gross Value, which cannot be added by itself and by the product suppliers of sector j, if sector j reduces or ceases its production Forward GVA/GDP effects by sector: Total quantity of Gross Value, which cannot be added by itself and by the users of the products of sector i, if sector i reduces or ceases its production EEA workshop Wuppertal Institut: José Acosta Fernández Interpretation of Total GVA-Effect Matrix resulting of the linkage of the Total Effects/Flows Matrix of hypothetical extraction with the national Gross Value Added

26 Water Accounts, Ecosystem Services & Human Wellbeing : Example of integrated water accounting by Artois-Picardie Basin Agency - France Km2 4,7 Millions inhabitants GDP: 98 billions GPD/inhabitant: GPD/inh France: Unemployment rate : 12,7% France: 9,9 % 96% of drinkable water come from groundwater Courtesy Arnaud Courtecuisse, Agence de lEau Artois-Picardie, France, 2006

27 Risk of not meeting WFD quality objectives by 2015 Courtesy Arnaud Courtecuisse, Agence de lEau Artois-Picardie, France, 2006

28 Water bill / mean available Income: social discrepancies Comparison with unemployment 2004 the commonly used value of annual consumption of 120 m3 per household hides important differences of mean consumption per region mean available income per municipality hides also various situations (and the real part of the population facing major difficulties to pay water bills) several groups of municipalities with ratio>3% (2-3% is a guidance value – see OCDE, EU, Académie de leau) these groups of municipalities combine high water price and low mean available income (and sometimes households expenses to buy bottled water are equivalent to the annual water bill) Courtesy Arnaud Courtecuisse, Agence de lEau Artois-Picardie, France, 2006

29 Thank you!

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