SEEA: MFA, NAMEA, SERIEE & Ecosystem Accounts Jean-Louis Weber, 15 April 2008

SEEA2003: expansion of the System of National Accounts (UN SNA1993) in order to include more environmental aspects RM HASSAN - UN The System of Environmental and Economic Accounting (UN 2003) - RANESA Workshop June 12-16, 2005 Maputo

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

Ecosystem approach within the SEEA: 4 questions 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 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) and addition to the value of goods and services is the full cost of ecosystems services covered by import prices? calculation of the “hidden cost” and addition to 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 the full cost of the final demand 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 GDP

SEEA Integrating Ecosystems Physical flows Monetary flows/valuation Assets valuation SEEA Integrating Ecosystems Natural capital / assets Rest of the World Subsoil Assets [stocks] Ecosystem Assets [stocks and resilience] Subsoil Assets [stocks] Material & Energy Flows Ecosystem Assets [stocks and resilience] Ecosystem Services Ecosystem Services NAMEA Additional Ecosystem Maintenance Costs Environmental Expenditures, Taxes Additional Ecosystem Costs in Imports (less in Exports) SNA flows & assets

Framework of Ecosystem Accounts Spatial integration Economic sectors Accounts of flows of ecosystem goods and services Core accounts of assets & flows (by ecosystem types, raw quantities) Material/energy flows (biomass, water, nutrients, residuals) Ecosystem Services Marketed Ecosystem Services (€) Non-market end use ES (physical units, €) Supply & use of ecosystem goods and services (Use of resource by sectors, supply to consumption & residuals, accumulation, I-O analysis, NAMEA) Counts of stocks diversity / integrity (by ecosystem types, focus on state, health, resilience, stress) Ecosystem types Natural capital Natural capital stocks, resilience & wealth, distance to objective (physical units, by sectors) Natural capital consumption/maintenance costs (€) Ecosystem assets inclusive wealth (€) Ecosystem Stocks & State Accounts Natural Capital Accounts/ living & cycling natural capital Economic integration

Physical account of the natural capital: ecological potential Example: Change in Landscape Ecological Potential 1990-2000 1990 Change 1990-2000 2000

Ecosystems and services

Accounts of value & sustainability of ecosystem services Capital stocks and functions Distance to stated targets & additional maintenance/restoration costs Market values Services Physical measurement and shadow prices

MFA, NAMEA and Ecosystem Services MFA  « materials »  « environmental impacts » NAMEA  « substances »  « environmental themes »

Use of ecosystem services by economic activities

Supply of ecosystem services, land use and well-being

Work sharing for a fast track implementation UN agencies, WB, IMF, OECD MA2 context (e.g. WCMC/UNEP: manual on ES currently drafted) GEO/GEOSS (GMES…) (support regional global monitoring) International conventions (CBD, IPCC, IGBP, HDP, Ramsar, Desertification… ) Regional regulations, agreements, conventions Key NGOs in the domain (IUCN, WWF, ISEE) UNEP-IPES, UNEP-FI London group/subgroup + Eurostat + EEA & scientific expert panel: issue paper, outline by end 2008 ESEA: EEA: natural assets (land, stocks, resilience, physical flows), ES non market values and additional maintenance costs Eurostat: connection of MFA and NAMEA to natural assets, ES/NAMEA, actual protection/restoration expenditures, external trade