Ecosystem Capital Accounts: the Way to Record the Multiple Forest Values in a National Accounting Framework Jean-Louis WEBER Former Special Adviser to the European Environment Agency on Economic-Environmental Accounting Honorary Professor, School of Geography, University of Nottingham Dialogue on Forestry in Context the Eco-Civilization 19 July 2013, Guiyang, China Eco-Forum Global 生 态 文 明 贵 阳 国 际 论 坛

National Accounts: SNA and SEEA SEEA Part 1 “Central Framework” SEEA Part 2 “Experimental Ecosystem Accounting” SEEA-EA XXX SEEA-EA Victoria SNA The System of Environmental-Economic Accounts adopted by the UN Statistical Commission in 2012 (SEEA 2012) has been supplemented in 2013 by a volume on “Experimental Capital Accounting”. The “Ecosystem Capital Accounts” (SEEA-ECA) under implementation in Europe are one of these experimentations. SEEA-ECA Ecosystem Capital Accounts Jean-Louis Weber, 19 July 2013

Forests in accounting frameworks Money. Economic asset, owned and managed for profit; cultivated forests mostly. No forest depletion recorded. Products = timber. Monetary and physical accounts. Forest asset: similar to SNA plus an extension to non-managed forests. Forest depletion only in physical units, not in money. No forest degradation recorded. Products = mostly timber plus an extension to non-timber forest products. Forest as ecosystem statistical units. Complete balances of stocks and flows, including Carbon/biomass, water, landscape integrity and biodiversity. People access to ecosystem services. Valuation in money on a case by case basis (no aggregation). In SEEA-ECA, use of a currency-equivalent named “ecosystem capability unit” to capture the main services into one single measurement. Jean-Louis Weber, 19 July 2013

Ecosystems deliver all together multiple services Source: Gilbert Long, 1972 A propos du diagnostic écologique appliqué au milieu de vie de l'homme. Options Méditerranéennes, 13, CHIEAM, Montpellier, Juin 1972 Jean-Louis Weber, 19 July 2013

Source: Gilbert Long, 1972 A propos du diagnostic écologique appliqué au milieu de vie de l'homme. Options Méditerranéennes, 13, CHIEAM, Montpellier, Juin 1972 NOTE: Excessive extraction of 1 service (here wood removal) can ruin all the other services Ecosystems deliver all together multiple services Jean-Louis Weber, 19 July 2013

Fossil energy and materials The Ecosystem Capital Must Be Maintained as the Produced Capital is… Production & Trade of Commodities & Assets Biodiversity Natural Resources ECOSYSTEM CAPITAL Inputs & Residuals NATURAL CAPITAL PRODUCED CAPITAL Land Biomass, carbon Water Functional Services Capital(s): Productivity & Health Maintenance up to capital depreciation (consumption) Maintenance up to capital restoration Jean-Louis Weber, 19 July 2013

3 – Ecosystem healthy state : public good, non-rival, non-exclusive use, long term “value”, non-transferable ownership rights, have a money counterpart if regulations enforce it (environmental expenditures, green taxes, offset certificates…) 1 – SNA commodities and produced assets : Ecosystem Assets and Services are embedded into market values… Ecosystems assets and services : 3 “values” in 1 Regulating Recreating 2 - Non produced assets/ non priced services : mostly common goods, which could be traded, but in general they are not properly valued by market prices Provisioning Market value don’t capture the complete ecosystem value: 1 to some extent, 2 imperfectly and 3 very poorly  need of a different currency Jean-Louis Weber, 19 July 2013

ECU: a composite currency to measure ecological value In physical accounts, measurements are made in basic units (tons, joules, m 3 or ha) which cannot be aggregated. These measurements have to converted to a special composite currency named ECU for ‘Ecosystem Capability Unit’. The price of one physical unit (e.g. 1 ton of biomass) in ECU expresses at the same time the intensity of use of the resource in terms of maximum sustainable yield and the direct and indirect impacts on ecosystem condition (e.g. water contamination or biodiversity loss, inversely ecosystem restoration). François 1st ( ), Ecu d'or au soleil du Dauphiné, Source : Münzen & Medaillen GmbH (DE) 1 ECU = 1 unit of accessible ecosystem resource Economic value: Quantity x Price (in money) Ecological Value: Quantity x Price-equivalent (in ECU) Jean-Louis Weber, 19 July 2013

Indexes of Accessible Carbon/ Biomass Indexes of Accessible Water Indexes of Accessible Landscape/ Biodiversity Services TEC: Total Ecosystem Capability (ECU) SUM / 3 Basic resource (e.g. tons of Carbon/ Biomass) X = ECU values per 1 km2 grid-cells SUM Calculation of Ecological Values in ECU & Total Ecosystem Potential (TEC) Jean-Louis Weber, 20July 2013 ECU- Prices Region Ecosystem

(TEC t+1) – (TEC t) TEC: Total Ecosystem Capability (ECU, year t) ECU-Prices year t Basic resource year t (e.g. tons of Carbon/ Biomass) X = ECU values per 1 km2 grid- cells, year t X = SUM t+1 t TEC change TEC: Total Ecosystem Capability (ECU, year t+1) ECU values per 1 km2 grid- cells, year t+1 ECU-Prices year t+1 Basic rerource year t+1 (e.g. tons of Carbon/ Biomass) Change in Total Ecosystem Potential (TEC): ecosystem capital degradation or enhancement In this case, there is degradation Jean-Louis Weber, 20July 2013

Landscape Ecological Potential change , by ecosystem landscape units Degradation National Accounts & Ecosystem Capital Accounts National Accounts: GDP, Final Demand, Balance Sheet Consumption of ecosystem capital (unpaid costs) & Adjustment of Final Demand (Full Price) Restoration costs Enhancement Balance sheet of ecological debts & credits in ECU Total Ecosystem Capital Capability in ECU Stocks 1990 Change Ecological sustainability of Value Added supported by ecosystem services Sustainability coefficients Jean-Louis Weber, 20July 2013

Preliminary results of SEEA-ECA in Europe An experimental framework for ecosystem capital accounting in Europe EEA Technical report No 13/ ecosystem Land cover accounts for Europe (26 countries), 2006 Updated for year 2006 (34 countries), next update: for year Jean-Louis Weber, 19 July 2013

The carbon/biomass account NPP/NEP: satellite images (NDVI) and modeling, accessible bio-C surplus Uses: agriculture and forestry statistics by regions/countries resampled to 1km2 grid f(land cover, NDVI) Net Ecosystem Carbon Balance: soil and vegetation (trees, shrubs, grass) _ = Jean-Louis Weber, 19 July 2013

The Net Ecosystem Carbon Balance 2000 (provisional results – 5 June 2012) Tree felling, 1999 Xmas storm Greenhouses, plastic sheets Intensive agriculture Mixed agriculture Forest NB: over- estimation of NPP in the South Jean-Louis Weber, 19 July 2013

Ecosystem Capital Accounts: Landscape/Biodiversity Capability Account Species/biodiversity change mean indexes, by ecosystem types Jean-Louis Weber, 19 July 2013

Forest species biodiversity change index ~ : Number of species in 1 km x 1 km grid with population increase or stable minus number of species with decrease Jean-Louis Weber, 19 July 2013

People access to ecosystem landscape/biodiversity services The map shows population density (red) weighted by the neighbourhood index (5 km) of forests and other natural areas (incl. agriculture mosaics) (green). Large EU metropolis (London, Paris, Milano, Berlin…) have large populations with limited access to green landscapes. Mountain areas have high “green” potential but limited resident population to enjoy it. Jean-Louis Weber, 19 July 2013

Thank You ! Jean-Louis WEBER