1. Environmental accounting A system approach to environmental information United Nations Statistics Division Department of Economic and Social Affairs Agenda item 3

2. Outline The system approach The SEEA as a system The SEEA revision

3. The system approach Systems can be represented as a series of stocks and flows The system approach is used by –the System of National Accounts –the System of Environmental and Economic Accounting (SEEA) The SEEA high order objectives are –To monitor the interactions between the economy and the environment –To monitor the quality of the environment to the extent that it can deliver ecosystem services to “humanity” The SEEA is a multipurpose system for organising information to assess: –The interactions between the economy and the environment –The interactions within the environment (selected natural processes) and economy (selected product flows) –The state of the environment, including quality

4. SEEA and the system approach Satellite vs System approach Environment/ Ecosystems Economy S t o c k s & F l o w s SNA SEEA

5. SNA SEEA The SEEA as a system Flows from env. to econ. Flows from econ. to env. Natural transfers X YA B A & B are establishments or households X & Y are environmental units e.g. ecosystems The SEEA: Organises information into stocks and flows in relation to: Economic units (A & B) Environmental units (X & Y) Covers all establishments and households (but not all product flows) Includes both physical and monetary accounts Product flows

6. Scope of the SEEA: Excludes social and human capital Human capital and social capital are not addressed by either the SNA or the SEEA Human capitalSocial capital SEEASNA X YA B

7. Level of methodological advancement A majority of measurement and methodological issues have been resolved There is a significant body of accounting practice Significant measurement and methodological issues remain There is much less accounting practice e.g. classification of ecosystems services, quality accounts SNA & SEEA Vol. 1 SEEA Vol. 2 & Env. perspective SEEASNA X YA B

8. 3 Volumes of the revised SEEA Volume 1 will be the standard –Agreed concepts, methodologies, classifications, tables and accounts Volume 2 will cover topics that are highly policy relevant but the methodology is not yet mature –Ecosystem accounts and related classification of ecosystem services –Degradation of ecosystems –Valuation of ecosystems and their degradation –Volume 3 – Applications of the accounts –Climate change –Sustainable Consumption and Production/Resource Productivity –Sustainability

9. SEEA Volume 1: Revision process Key Dates Process for the preparation of consolidated recommendations on issues in the issue list for Volume1 Process for the drafting chapters and complete Volume 1 of the revised SEEA April 2010 Preparation of outcome papers regarding Vol. 1 of the revised SEEA Drafting of Chapters by the editor and progressive global consultation Sept 2010 Completion of global consultation of outcome papers regarding Vol. 1 of the revised SEEA Dec 2010 Revision and consolidation of outcomes for Vol.1 of the revised SEEA, into a single paper for discussion by the UNSC Feb 2010 Submission of the consolidated recommendations for Vol.1 of the revised SEEA to the 42 nd session of the UNSC for adoption April 2011 Completion of global consultation of the draft chapters of Volume 1 of the revised SEEA, as they become available July 2011 Revision and consolidation of chapters in Vol. 1 of the revised SEEA Global consultation of complete Vol.1 of the revised SEEA Dec 2011 Revision and finalisation of Vol. 1 of the revised SEEA Feb 2012 Submission of complete draft of the revised SEEA to the 43 rd session of the UNSC for adoption Note: Dark areas represent milestones.

10. Summary and conclusions SEEA is the conceptual framework for organising environmental information –It covers economic units and environmental units –It measures stocks and flows related to these units –It includes physical and monetary accounts The SEEA can support information from both economic and environmental perspectives The SEEA is a system in its own right The revised SEEA will go through an extensive drafting and review process

11. For more information Contact us: seea@un.org See the UNSD website: http://unstats.un.org/unsd/envaccounting/default.asp –Environmental Accounting Archive (Includes national and international examples) http://unstats.un.org/unsd/envaccounting/ceea/archive/Introduction.asp –Towards the revision of the SEEA http://unstats.un.org/unsd/envaccounting/seearev/ –The London Group http://unstats.un.org/unsd/envaccounting/ceea/default.asp –The United Nations Committee on Environmental and Economic Accounts (UNCEEA) http://unstats.un.org/unsd/envaccounting/londongroup/