1. 1 Structure of the revised SEEA-2003 Some issues for discussion Second Meeting of the United Nations Committee of Experts on Environmental-Economic Accounting (New York, 5-6 July 2007)

2. 2 Outline of presentation BackgroundBackground General structure of the SEEA-2003General structure of the SEEA-2003 Two outstanding issuesTwo outstanding issues Stocks before flows or flows before stocks?Stocks before flows or flows before stocks? Presentation of hybrid accounts:Presentation of hybrid accounts: In the same chapter as physical flows?In the same chapter as physical flows? Or in the same chapter with monetary accounts (linked to physical flows)?Or in the same chapter with monetary accounts (linked to physical flows)?

3. 3 Background The London Group discussed in broad term the structure of the revised SEEA-2003The London Group discussed in broad term the structure of the revised SEEA-2003 The LG agreed:The LG agreed: The revised SEEA-2003 is a multipurpose information systemThe revised SEEA-2003 is a multipurpose information system The system approach of the SEEA-2003 should be strengthened to show that flow and stocks are inter-relatedThe system approach of the SEEA-2003 should be strengthened to show that flow and stocks are inter-related The presentation of flows before stocks or vice versa does not imply a choice in priority of implementationThe presentation of flows before stocks or vice versa does not imply a choice in priority of implementation

4. 4 Broad structure of the revised SEEA-2003 Part I: Statistical standardPart I: Statistical standard Covers agreed concepts, definitions, classifications tables and accounts including the system approachCovers agreed concepts, definitions, classifications tables and accounts including the system approach Part II: Guidelines on non-standard accountsPart II: Guidelines on non-standard accounts Covers best practices in the implementation that are high policy relevant but for which there is no agreementCovers best practices in the implementation that are high policy relevant but for which there is no agreement Part III: ApplicationsPart III: Applications Covers how the different categories of accounts can address the two main policy themes: sustainability and climate changeCovers how the different categories of accounts can address the two main policy themes: sustainability and climate change Covers discussion on indicatorsCovers discussion on indicators

5. 5 Structure SEEA-2003 Chapter 1 – Introduction Objectives, audience and main policy themes Chapter 2 – SEEA framework Presentation of the framework, basic accounting concepts, economic classifications of activities and products Change in presentation: start from the overall framework and describe the modules

6. 6 Structure SEEA-2003 (Cont’ed) Part I - Statistical Standard Chapter 3 – Physical flow accounts Chapter 4 – Accounting for environment- related activities and products (including EPE) Chapter 5 – Asset accounts for natural resources Chapter 6 – Full sequence of accounts Chapters 3 and 5 may be swapped according to whether flows are presented before stocks or vice- versa

7. 7 Structure SEEA-2003 (Cont’ed) Part II - Non-standard accounts Chapter 7 – Valuation of environmental degradation Chapter 8 – Accounting adjustments for environmental degradation Part III – Applications Chapter 9 – Applications Annexes Glossary and index

8. 8 Flows before stocks or stocks before flows? Flows before stocks – AdvantagesFlows before stocks – Advantages Same structure as the SEEA-2003 and 1993 SNA and 1993 SNA Rev.1Same structure as the SEEA-2003 and 1993 SNA and 1993 SNA Rev.1 Usually preferred by countries with little natural resourcesUsually preferred by countries with little natural resources Responds to some sustainability issues (e.g. sustainability of income, etc.)Responds to some sustainability issues (e.g. sustainability of income, etc.)

9. 9 Flows before stocks or stocks before flows? Stocks before flows – AdvantagesStocks before flows – Advantages Presents first the natural resource base from which the flows are generatedPresents first the natural resource base from which the flows are generated Responds to the capital approach of sustainabilityResponds to the capital approach of sustainability Reflects current trends that stocks are important in economic analysis (see also change in presentation in BPM6)Reflects current trends that stocks are important in economic analysis (see also change in presentation in BPM6) The chapter on the full sequence accounts follows more logically if physical flow accounts are presented after the stocksThe chapter on the full sequence accounts follows more logically if physical flow accounts are presented after the stocks

10. 10 Presentation of hybrid accounts Option 1Option 1 Hybrid accounts are presented in the same chapter as the physical flow accounts. The chapter includesHybrid accounts are presented in the same chapter as the physical flow accounts. The chapter includes Physical flow accounts, including classifications, energy accounts, waste and material flow accounts, emission accountsPhysical flow accounts, including classifications, energy accounts, waste and material flow accounts, emission accounts Link the physical flow accounts to the standard SUT of the national accountsLink the physical flow accounts to the standard SUT of the national accounts Advantage: Direct link between the physical flow accounts and the standard supply and use table. Useful for deriving indicators of efficiency and productivity.

11. 11 Presentation of hybrid accounts Option 2 Hybrid accounts are presented in the same chapter as monetary flow accounts. The chapter includesHybrid accounts are presented in the same chapter as monetary flow accounts. The chapter includes Standard SUT augmented with EPE accounts and other transactions related to the environmentStandard SUT augmented with EPE accounts and other transactions related to the environment Physical flowsPhysical flows Advantage: Concise presentation of physical flows with standard SUT and economic transactions related to the environment. Useful for indicators of efficiency as well as analyzing impacts of economic instruments on the environment (e.g. taxes on physical flows, etc.)

12. 12 Questions for the UNCEEA 1. 1.Does the UNCEEA agree with the proposed structure of the revised SEEA-2003 in three parts, namely, Part I - Statistical Standard, Part II – Non-standard accounts, Part III – Applications [para 4]? 2. 2.Does the UNCEEA agree that the discussion on indicators is limited to Part III – Applications of the SEEA-2003 [para 4]? 3. 3.Does the UNCEEA agree with not including in the revised SEEA-2003 country examples and compilation issues [para 7]? 4. 4.Does the UNCEEA agree with the change in presentation of Chapter 2 from “bottom-up” to “top- down” approach [para 12]?

13. 13 Questions for the UNCEEA 5. 5.Which order of chapters does the UNCEEA recommend for Part I of the SEEA- 2003? i. i.Flows, stocks and full sequence of accounts; or [paras 15,16] ii. ii.Stocks, flows and full sequence of accounts [paras 17 - 21] 6. 6.What is the UNCEEA opinion on the presentation of hybrid accounts? i. i.Should they be presented in the chapter of the physical flows [para 23]? or ii. ii.Should they be presented in the chapter of the monetary flows [para 24]?