Ecosystem Ecosystem accounts within SEEA revision An EEA proposal

1. Third Meeting of the UN Committee of Experts on Environmental-Economic Accounting New York, 26-27 June 2008 Ecosystem Ecosystem accounts within SEEA revisionAn EEA proposal “Global warming may dominate headlines today. Ecosystem degradation will do so tomorrow” Corporate Ecosystems Services review, WRI et al. March 2008

2. Human wellbeing, poverty alleviation Direct drivers of change Climate Change land use, resource use, species, technology What’s at stake – human and planetary well being Economy Society Millennium Ecosystem Assessment Ecosystem integrity (functions, biodiversity, résilience…) Ecosystem services

3. Application of ecosystem accounting foreseen for… • MA follow-up 2015 (in Europe: Eureca! 2012) • IPBES, The Intergovernmental Platform on Biodiversity and Ecosystem Services • Adaptability to Climate Change • EU’s Thematic Strategy Sustainable Use of Resource (“basket” of 4 headline indicators) • ESEA, European Strategy for Environmental Accounting • European Data Centers related to land and ecosystems • Beyond GDP (natural K in physical units, inclusive final consumption, full cost of goods & services, of imports...) • TEEB, The Economics of Ecosystems & Biodiversity • IPES, International Payments for Ecosystem Services • National initiatives (accounting, ecosystem assessment, mitigation banking…) • Corporate accounting guidelines for environmental liability

4. The economic questions behind ecosystem accounting • Risks of unsustainable use of the living/cycling natural capital are ignored: the negative impacts of over-harvesting, force-feeding with fertilisers, intoxication, introduction of species, fragmentation by roads or dams, or sealing of soil by urban development have no direct monetary counterpart in GDP or corporate accounts. • The natural capital is not even amortised in accounting books of companies and in the national accounts – no depreciation allowance is made for maintaining ecosystems’ critical functions and services. The full cost of domestic products is not covered in many cases by their price. • This is as well the case of the price of imported products made from degraded ecosystems: their full costisnot covered by their price. • The actual value for people of free ecosystem services is not accounted in their final consumption (the market tells: price = zero).

5. Amvrakikos, Greece: Wetland management, Water & Fish Doñana, Spain: Water, Wetland & Strawberries Migratory Birds Flyways, Wetlands & Bird Flu Prevention Accounting for ecosystem costs and benefits at different scales… Action level, local scale National & regional government, European market Global scale

6. Natural Park of Camargue (France) 1990 Change 1990-2000 … & accounts for connecting different scales LEAC/ Landscape Ecological Potential1990-2000, 1km² grid (Source: Ecosystem Accounting for Mediterranean Wetlands, an EEA feasibility study for TEEB)

7. Action level, local scale, business, projects, case studies Guidelines, accounting charts Implementation by municipalities, agencies, business National & regional government SEEA 2012 Framework Clearing house on tariffs Beyond GDP Accounting (statistical offices, environmental agencies…) Global scale, framing & monitoring of International Conventions and markets (IPES) Simplified accounts Global monitoring programmes International statistics Central role of the SEEA framework

8. An accounting system for an ecosystem liability of organisations “Participate in ecosystem accounting (marine and terrestrial)  Assess management and restoration costs chargeable to companies” Ecosystem accounting at the action scale, an example

9. Classification of ecosystem services

10. Capital stocks and functions Services Ecosystem services valuation Accounting for ecosystem services value & sustainability Distance to stated targets & additional maintenance/restoration costs Market values Physical measurement and shadow prices

11. Social Dimension of Ecosystem Accounting: Spatial integration of ecosystems, land use, services, & population

12. LEAC/Land cover accounts as basic infrastructure

13. Change Matrix (44x43=1932 possible changes) summarized into flows LCF8 LCF5 LCF1 LCF6 LCF4 LCF2 LCF3 LCF7 LCF9 LEAC: from changes to flows of land cover 2000 1990

14. Framework of Ecosystem Accounts Spatial integration Economic sectors Core accounts of assets & flows (by ecosystem types, raw quantities) Land cover Rivers Soil, sea, atmosphere Components: water, biomass, C, N P, species… Accounts of flows of ecosystem goods and services Material/energy flows (biomass, water, nutrients, residuals…) • Functional Ecosystem Services • Incorporated into products (€) • Free 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) Ecosystem types Counts of ecosystem health/resilence (diagnosis by ecosystem types) • Natural capital • Natural capital stocks, resilience (physical units, by sectors) • Natural capital consumption/maintenance & restoration costs (physical units and €) • Ecosystem assets inclusive wealth (€) Ecosystem Stocks & State Accounts Natural Capital Accounts/ living & cycling natural capital Economic integration

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

16. Volume 1 Statistical Standard Volume 2 Non Standard Accounts Volume 1 Statistical Standard NAMEA, expenditure, physical quantities, sub-soil, energy, value of economic assets Volume 2 Non Standard Accounts ecosystems, quality, valuation… RM HASSAN - UN The System of Environmental and Economic Accounting (UN 2003) - RANESA Workshop June 12-16, 2005 Maputo SEEA2003: enlargement of SNA1993for a better description of the economy-environment relation Revision  SEEA2012 Impacts on ecosystems & related services/benefits Macro-ecological closure (non-linear feedbacks, spatial issues)

17. EEA’s proposal • Publish SEEA volume 2 (version 1) at the same date as volume 1  SEEA full picture in 2012 • Steer volume 2 project and editing: • ecosystem accounts (see next slide); • qualitative aspects assets possibly treated in Volume 1 from a quantitative perspective; • valuation issues related to ecosystem “degradation”, “depletion” being part of Volume 1; • other items will be postponed… • Review edition with London Group & international panel of experts • Look after projects related to ecosystem accounting (TEEB, headline indicators, MA…) • Report to London Group & UNCEEA

18. 1st Draft outline for ecosystem accounts in SEEA revision Part A - Overview and accounting framework Chapter 1. Objectives, system analysis, main features Chapter 2. Implementation of ecosystem accounts Chapter 3. Synthesis and Reporting Part B - Accounts by dominant ecosystem types Chapter 4 Land cover accounts Chapter 5 Urban ecosystems Chapter 6 Cropland systems Chapter 7 Pasture, mosaics and natural grassland systems Chapter 8 Forest ecosystems Chapter 9 Non cultivated dryland, sparse vegetation and bare soils Chapter 10 Wetlands Chapter 11 Lakes and rivers Chapter 12 Soil Chapter 13 Sea Chapter 14 Atmosphere Chapter 15 Regional approaches (mountains, coastal zones, islands, catchments, biogeographic zones)