Eurostat I) Context & objectives of KIP INCA project Project owner is the Environment Knowledge Community (EKC) EKC is an EU inter-services group involving key environmental data users and providers, i.e. DG ENV, DG CLIMA, DG JRC, DG ESTAT, DG RTD and EEA to strengthen the knowledge base for the 7 th EAP. Knowledge Innovation Projects (KIPs) have the ambition to close gaps in environmental knowledge adopting an innovative approach. ‘KIP INCA’ is a KIP on ‘Accounting for natural capital and ecosystem services’ Key objective for 2016 is to develop a proposal for the design and resourcing of a future integrated EU ecosystem accounting system 1

Eurostat Timing Two phases: Phase 1: Feasibility and design phase (mid 2015 – mid 2016) Phase 2: Implementation phase (2016 – 2020) What to achieve in Phase 1: A joint set of EU ecosystem accounting objectives A dialogue with Member States, researchers, policy makers, etc. A proposal for design of future EU ecosystem accounting system A plan for improving key data sources on natural capital A reliable estimate of the necessary resources An implementation plan until 2020 (and beyond) 2

Eurostat The KIP INCA approach is iterative! SEEA-EEA as methodological reference MAES as important concept and data input SEEA-CF and System of National Accounts as overall frame Input from EU research projects to develop concepts & methods Experiments, modelling and stepwise approach Over time better adjustment of existing data to ecosystem accounting requirements Building an operational data infrastructure Possibility to plug-in Member States data at a later stage 17 September 2015 MAES Working Group 3

Eurostat Improving the data foundation – steps to take Farm Structure Survey Forest statistics Copernicus Land monitoring In situ coordination LUCAS Natura 2000/CDDA Ecosystem mapping (extent) Ecosystem condition (state) Biodiversity assessments (monitoring) Landuse/coverdata Ecosystem data Environmental reporting A system of datasets within a common spatial reference framework; Integration of existing initiatives – assessment of ecosystems, modelling ecosystem services…; Use of models to transfer data into accounts and fill data gaps 4

Eurostat II) Components of ecosystem accounting 5 Current focus

Eurostat Vision: from maps to accounting tables… (…from accounting tables to better policies)

Eurostat 14 June 2016 Existing potential input layers - MAES activities (modelled estimates of ecosystem services) (Source: JRC)

Eurostat Existing potential input layers: MAES activities (modelled distribution of ecosystems in Europe) (Source: EEA)

III) Examples: ecosystem extent account 9

Example of accounting table for ecosystem extent [draft data !] 10

11 Second MAES Report, 2014: Condition parameter examples

Eurostat Ecosystem condition – evaluating the data foundation 12

Example: Condition accounts for three ecosystem types (data for illustration only!) 13

Eurostat Questions currently being discussed: What are the most important ecosystem condition parameters to be considered? Which ecosystem condition parameters fit an accounting approach? How many condition parameters should be covered / can be understood in an accounting table? Would it be better to use a limited number only, e.g. 5 or 10 in all? How to combine general and ecosystem-specific condition parameters? How to best connect the MAES ecosystem assessment work and the development of the accounting approach? 14

Eurostat Summary of current progress & next steps Draft proposals exist for all physical components in SEEA-EEA (in varying stages of development) Background studies and concept exist for monetary part of SEEA- EEA; KIP-INCA will set out a roadmap for the further development and implementation of these components in phase 2 Current aim is to complete the KIP-INCA proposal by mid-year Draft technical output of KIP INCA partners will be discussed with statistical and accounting experts from Member States and other DGs of the European Commission on 25/26 April This workshop reviews the set-up of the EU system and potential engagement of Member States in an accounting perspective The forthcoming KIP-INCA proposal sets out actions to be taken by EU partners – Phase 2 will see stepwise implementation by 2020 in interaction with EU Member States 15

Eurostat IV) DG ENV contribution 16 Develop macro-indicators, both physical and monetary Show how sectors benefit from and impact on natural capital Account for range of ecosystem benefits and values Determine synergies/trade-offs amongst ecosystem services Corporate accounting: consistency with national accounts EU input to UN-SEEA EEA WAVES: World Bank - developing countries Potential policy uses of NCA

Underlying science of relationship between biodiversity, ecosystem condition and services Data issues – integrating and making use of various data sources (including Copernicus, etc.) Issues of scale and aggregation Valuation methodologies for accounting Using accounts in decision making processes Requires approaches across disciplines and specific expertise Capacity building DG ENV contribution Some research issues

Thank you for your attention! 18

20 Suggested Land Cover Ecosystem Classification based on MAES Ecosystem types and CLC classes