1. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Land & Ecosystem Accounts within SEEA revision LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Global warming may dominate headlines today. Ecosystem degradation will do so tomorrow Corporate Ecosystems Services review, WRI et al. March 2008 Jean-Louis Weber European Environment Agency jean- louis.weber@eea.europa.eu

2. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 An EEA proposal to UNCEEA (June 2008) take the responsibility of organising the drafting of a volume on land and ecosystem accounts to be issued at the same time as volume 1 UNCEEA answer: review of the proposal by Brasil, Canada, Eurostat land possibly integrated to Volume 1, ecosystem to Volume 2 Volume 2 shortly after Volume 1 opinion of London Group interest by UNEP to particpating into the process (LG sub-group on land and ecosystem accounts)

3. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Land and ecosystems in the SEEA The SEEA classification of assets (Chapter 7 – Table 7.2) refers to 3 categories: 1.natural resources 2.land and water surfaces 3.ecosystems Note: Ecosystems are made of component [natural resources] and land. Natural resources and land are [are prone to be] private goods [withexclusive right of use]. They are more than the sum of components and land: their capacity of reproducing life [and continue delivering a bundle of services over time] is their fundamental characteristic; it is a public good [and therefore the objectives such as halt biodiversity loss].

4. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 3 – Ecosystem as a Public Good: non-transferable rights on ecosystem sustainable potential 1 – Produced & Non produced Assets/SNA: Resource & land Assets, services and values: 3 components 2 - Non produced Assets/ Other Services Regulating Recreating Provisioning

5. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 SEEA2003: enlargement of SNA1993 for a better description of the economy-environment relation 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, land (?), value of economic assets Volume 2 Non Standard Accounts ecosystems, quality, valuation… Revision SEEA2012 Macro-ecological closure (non-linear feedback, spatial issues) Impacts on ecosystems & related services/benefits

6. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 CORE LAND COVER ACCOUNT ECOSYSTEM ACCOUNTS Land integration of ecosystem accounts Soil Flora & Fauna Water system Atmosphere/ Climate Land use economic & social functions Intensity of use & full maintenance costs Ecosystem services Ecosystem assets Stocks Material & energy flows Resilience Production & Consumption Economic Assets Population Infrastructures & Technologies Inclusive use of market & non market ecosystem services

7. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Land cover accounts

8. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 The approach used to generate land cover accounts records

9. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 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 1990 2000

10. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Accounting for and mapping flows: urban sprawl, by grid

11. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Ecosystem accounts

12. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Recurrent policy demand for ONE integrated indicator for - Assessing the direct costs and benefits of environmental protection and management as well as the costs of inaction, at the local, regional & national levels - Supplementing or mitigating GDP and National Income measurements of economic performance: Should relate to sustainability and human well being Can be physical, better in money Should include a clear bottom line Existing long lists of indicators dont really work for that purpose Previous attempts (e.g. green GDP) have not been convincing… - November 2007: Beyond GDP International Conference in Brussels EEA: Ecosystem accounts of assets and services open a new way forward… Full costs of goods and services including non covered ecosystem maintenance and restoration costs for meeting stated targets Total benefits for human wellbeing from ecosystem services, used after production and monetised as well as directly available for end use and free

13. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Ecosystem approach within the SEEA: 4 questions 1. is the renewable natural capital maintained over time at the amount and quality expected by the society? physical measurement of stocks and resilience in reference to stated social norms. [no monetary valuation of ecosystem assets needed at this stage] 2. is the full cost of maintaining the natural capital covered by the price of goods and services? measurement of additional costs not currently covered for maintaining and restoring domestic ecosystems potentials (provision for depreciation, consumption of ecosystem capital) and addition to the value of goods and services 3. is the full cost of ecosystems services covered by import prices? calculation of the concealed cost (virtual transfer in capital) and addition to the value of imported goods and services Add additional domestic costs (2.) and imported hidden costs (3.) to the value of products for calculating the full cost of goods of services (and in the full cost of the final demand after deduction of costs in exports 4. is the total of goods and services supplied to final uses by the market (and government institutions) as well as for free by ecosystems, developing over time? measure and value free end-use services and add these benefits to Final Demand

14. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Society Economy Ecosystem Economy and ecosystem: the conceptual model Ecosystem Maintenance/restoration of ecosystem functions Input of fossil energy, materials Services CO 2

15. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Logic underlying the Millennium Ecosystem Assessment… Biophysical structure or process (e.g. woodland habitat or net primary productivity ) Service (e.g. flood protection, or harvestable products) Service (e.g. flood protection, or harvestable products) Function (e.g. slow passage of water, or biomass) Function (e.g. slow passage of water, or biomass) Benefit (e.g. willingness to pay for woodland protection or for more woodland, or harvestable products) Benefit (e.g. willingness to pay for woodland protection or for more woodland, or harvestable products) Σ Pressures Limit pressures via policy action? Maintenance, restoration Courtesy Roy Haines-Young Economic and social values (sometimes market values). Maintenance and restoration costs

16. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Natural assets/ ecosystem capital Natural capital stocks, health/resilience, distance to objective (physical units, by sectors) Consumption of Ecosystem Capital /restoration costs ( ) Consumption of Ecosystem Capital concealed in imports/exports ( ) NPV or market value of selected assets, SNA rules ( ) Ecosystem assets inclusive wealth ( ) Supply & use of ecosystem services by sectors, I-O analysis, NAMEA Functional Ecosystem Services [Marketed & Non-market end use ES (physical units and )] SNA, SEEA2003 & Ecosystem Accounts Sector accounts of ecosystem natural capital Sector accounts of flows of ecosystem services Counts of ecosystem integrity/health (focus on vigor, robustness, resilience, dependance from inputs, healthy populations & stress) Core accounts of assets & flows systems: land systems, rivers, soil, sea, atmosphere... components: biomass, water, C, N, P, species... Ecosystem Rating & Aggregates by Ecosystem types Material/energy flows [biomass, water, nutrients, residuals, physical units] SNA SNAsectorsactivitiesproductsflowsassets Impacts to the ecosystem Feedbacks to the economy

17. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Mock- up account

18. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Spatial Integration of Environmental & Socio- Economic Data Collection Mapping Sampling Individual Sites Monitoring Socio- Economic Statistics Socio-economic statistics

19. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Scale, governance, accounts and payments Derived from global monitoring programmes & international statistics IPES: global trade of ecosystem permits Simplified accounts Global scale : monitoring of International Conventions and framing & regulation of markets Clearing house on [1] ES prices & [2] ecosystem mitigation costs Prices & costs reference tables for legal compensation Green taxes Beyond GDP Accounting SEEA 2012 Framework National & regional government: environmental agencies, ministries of economy, statistical offices, courts Corporate accounts, costs & benefits, trade of ES PES: specific markets Accounting guidelines, charts Action level : local scale, site level, management, projects, case studies, business

20. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Simplified ecosystem accounts Markets need accounts, regulations [= control] Land ecosystems are spatially distributed => grid data [e.g. 1 km2] Globally, change matters [degradation or improvement of ecosystem functioning and attached cost], not the value of the stock Global multicriteria rating based on a small number of ecological potential [derived from ecosystem accounts]: Landscape ecological potential [LEP] Landscape ecological potential [LEP] HANPP HANPP Biodiversity rarefaction Biodiversity rarefaction Exergy loss [river basins] Exergy loss [river basins] Dependance from external inputs [material/energy, footprint] Dependance from external inputs [material/energy, footprint] losses/gains of points of ecological potential computation of restoration costs [needed for compensating losses // or accumulated by gains of points] Rating can be detailed as necessary for the policy [national, regional] and action scales [local, business]

21. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Example of a first candidate: LEP Corine land cover map (derived from satellite images) Green Background Landscape Index (derived from CLC) Naturilis (derived from Natura2000 & CDDA) Effective Mesh Size (MEFF, derived from TeleAtlas and CLC) net Landscape Ecological Potential (nLEP) 2000, by 1km² grid cell nLEP 2000 by NUTS 2/3

22. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 1990 LEAC/ Landscape Ecological Potential 1990-2000, 1km² grid (Source: Ecosystem Accounting for Mediterranean Wetlands, an EEA feasibility study for TEEB) Change 1990-2000 LEP, state and change by 1 km2 grid Natural Park of Camargue (France)

23. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 LEP connects at the local level: e.g. effect of land cover change

24. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Soil, sea and atmosphere Soil (see session 4): start from priority services ==> fertility, carbon storage ==> accounts for organic matter/biomass/carbon [composition, quality], erosion and sealing [quantity] + additional salinisation and biodiversity counts + next, losses of income linked to soil degradation Sea: start from coastal sea service of nursery [spawning] and fish stocks [including age structure and interactions between stocks] Atmosphere: start from GHGs accounting

25. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Land Use Functions & Ecosystem Services Expert meeting on Land Use and Ecosystem accounting, 18-19 May 2006, EEA LUF analysis and mapping address cross-cutting issues e.g.: Urban/Rural, Agro/Environment detect & measure ES services = ecosystem functions which benefit to people, somewhere

26. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Valuation of ecosystem services interest: inclusion of free services contributing to quality of life, health and the regulation of natural processes (pollination, water purification, floods, erosion, nursery for wildlife...); extended calculation of impacts; enforcement of legal compensations; valuation of rents [e.g. bioprospecting...], creation of new activities/income. difficulties from micro to macro; the benefit transfer issue; the aggregation issue shadow prices are linked to specific purposes of valuation – ranges of prices are acceptable in case studies, not so much in national accounting feasibility; limits to calculation of the total economic value; case of the non-use or existence values; case of regulating services; focus on most important services one by one and the multifunctional character of ecosystems

27. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 The Zanzibar table adapted from Glenn-Marie et alii 2008

28. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Perspectives SEEA revision 2012/2013 from GlobCover to GlobCorine: European Space Agency & EEA Source: ESA, 2008

29. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Points for discussion Land accounts within volume 1 ? Ecosystem accounts in volume 2 ? SEEA-Ecosystem in perspective ? Prioritisation: 1 - simplified accounts for all ecosystems [and input to MA2015] + focus on forests, wetlands 2 - support to initiatives at local & business levels 3 - full integrated accounts Need further discussion of contents = classification of ecosystem services valuation of ecosystem services definition of accounting units [socio-ecological systems] calculation of ecosystem capital consumption upscaling of ecological potential assessments physical & monetary aggregates ==> periodic meetings of the sub-group enlarged to UNEP experts [IPES, MA. TEEB, Green Economics] ? Meeting on ES classification at EEA, 10 & 11 December 2008

30. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Thank you!

31. LONDON GROUP MEETING BRUSSELS, 29 SEPTEMBER – 3 OCTOBER 2008 Ecosystem Assets [stocks and resilience] Subsoil Assets [stocks] Environmental Expenditures, Taxes Additional Ecosystem Maintenance Costs Material & Energy Flows NAMEA Ecosyste m Services Natural capital / assets SNA flows & assets Additional Ecosystem Costs in Imports (less in Exports) Ecosystem Services Ecosystem Assets [stocks and resilience] Rest of the World SEEA Integrating Ecosystems Physical flows Monetary flows/valuation Assets valuation Subsoil Assets [stocks]