Progress, Well-Being and Sustainable Development Results of the ESS Sponsorship Group S June 2012, Paris Walter Radermacher, Eurostat

GDP and beyond – history 1968: adoption of System of National Accounts Early 70s –criticism to economic growth and the economic accounts –Key role of Jacques Mayer (Eurostat DG ) UN Expert Group (chair Jacques Mayer) to discuss a Framework to develop an integrated system of demographical and social statistics, with instrumental analogies with SNA failed, but extension of social statistics + Social Report chair of INSEE Working Group ‘Statistics, Accounting and Economical Concepts for the Environment ’ Walter Radermacher 2

26-28 June 2012 OECD, Paris GDP and beyond – history 1987: Sustainable Development 2001: EU Sustainable Development strategy development of Sustainable Development Indicators (SDIs) 2006: renewed EU Sustainable Development strategy Governance cycle with bi-annual Eurostat monitoring reports (100 Sustainable Development Indicators) But still missing elements…. 3

26-28 June 2012 OECD, Paris GDP and beyond in recent years Major European conference involving broad participation (statisticians, environmentalists, social policy makers) (Nov 2007) Commission produces political roadmap for actions ‘GDP and beyond’ in the short/medium term (Aug 2009) Sponsorship Group launched by the European Statistical System (Feb 2010) Sponsorship Group Report (November 2011) Commission Statistical Work Programme (2012 & beyond) Stiglitz Report 4

26-28 June 2012 OECD, Paris 1.Complementing GDP with environmental and social indicators  A comprehensive environmental index  Quality of life and well-being 2.Near real time information for decision-making  More timely environmental indicators  More timely social indicators 3.More accurate reporting on distribution and inequalities 4.Developing a European Sustainable Development Scoreboard 5.Extending National Accounts to environmental and social issues Priorities set out in the European Roadmap 2009 Europe 2020 Towards 5

26-28 June 2012 OECD, Paris Smart, sustainable and inclusive growth Europe 2020 strategy – GDP and beyond 6 People EnvironmentEconomy Intra-generational Inter-generational

26-28 June 2012 OECD, Paris Sponsorship Group recommendations Topic 1: Strengthening the household perspective & distributional aspects Promoting existing national accounts data on household income & consumption –Adjusted household gross disposable income per capita Providing information on distribution of income, consumption & wealth –Use the adjusted GDI of households as the reference concept to link National Accounts (NA) data with social statistics Encouraging compilation of balance sheet accounts for households 7

26-28 June 2012 OECD, Paris Sponsorship Group recommendations Topic 2: Multi-dimensional measures of quality of life EU Statistics on Income & Living Conditions (EU-SILC) as the core instrument –2013 AHM on subjective well-being –Expert Group on QoL indicators Complementing the coverage of the dimensions with additional data sources – LFS, EHIS, Time use Deepening and improvement of analysis 8

26-28 June 2012 OECD, Paris Sponsorship Group recommendations Topic 3: Environmental sustainability – first priority actions EP-Council Regulation on Environmental Economic Accounts Develop energy flows accounts and derive indicators (e.g. energy use by economic activity) Further develop indicators related to climate change Develop early estimates of CO 2 emissions based on monthly energy statistics Derive “footprint indicators” using Supply/Use Input/Output Tables (SUIOT) to look at the “consumer perspective” of global climate change Explore production of a “raw material consumption” indicator

26-28 June 2012 OECD, Paris Different approaches to deriving footprint indicators 10

26-28 June 2012 OECD, Paris ShortMediumLong term Develop environmental goods and services sector (EGSS) Develop asset accounts for natural resources, including sub-soil assets and energy assets Consolidate & simplify the environmental protection expenditure accounts (EPEA) Use Land Use/Land Cover data to build relevant indicators on landscape and biodiversity merge with existing framework for European environmental accounts 11 Sponsorship Group report recommendations Topic 3: Environmental sustainability – second priority actions

26-28 June 2012 OECD, Paris ShortMediumLong term Harmonise presentation and meta-data of existing waste indicators Develop water accounts to map use of water according to economic activity Improve data coverage & quality of existing water statistics & develop indicators for pressures on regional water resources Develop waste accounts based on existing waste statistics 12 Sponsorship Group report recommendations Topic 3: Environmental sustainability – third priority actions

26-28 June 2012 OECD, Paris Consistency with theory Political relevance Measurability Stiglitz GDP&BeyondEurope 2020 Quality of Indicators Need to bring all elements together 13

26-28 June 2012 OECD, Paris Challenges Implementation – first Commission reporting by end 2012 Liaising with other projects (eFrame) Giving broader society time to “catch up” with the statisticians –Openness to the results of a broader societal reflection, e.g. civil society reflection with the EU –Still evolving picture at national level Moving forward but keeping some flexibility Selecting a dashboard of indicators Getting political acceptance and use of the data (long term) 14

Figures for the future: 20 years of sustainable development in Europe?