Jean-Louis WEBER Former Special Adviser to the European Environment Agency

1. Eco-Forum Global • 生 态 文 明 贵 阳 国 际 论 坛 Dialogue on Forestry in Context the Eco-Civilization 19 July 2013, Guiyang, China 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 jlweber45@gmail.com

2. SEEA-ECA Ecosystem Capital Accounts National Accounts: SNA and SEEA 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-EA XXX SEEA Part 1 “Central Framework” SNA SEEA-EA Victoria SEEA Part 2 “Experimental Ecosystem Accounting” Jean-Louis Weber, 19 July 2013

3. 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

4. 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

5. Ecosystems deliver all together multiple services NOTE: Excessive extraction of 1 service (here wood removal) can ruin all the other 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

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

7. Ecosystems assets and services : 3 “values” in 1 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 1 – SNA commodities and produced assets: Ecosystem Assets and Services are embedded into market values… Regulating Recreating Market value don’t capture the complete ecosystem value: 1 to some extent, 2 imperfectly and 3 very poorly need of a different currency 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…) Jean-Louis Weber, 19 July 2013

8. ECU: a composite currency to measure ecological value • Economic value: Quantity x Price (in money) • Ecological Value: Quantity x Price-equivalent (in ECU) In physical accounts, measurements are made in basic units (tons, joules, m3 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 (1515-1547), Ecu d'or au soleil du Dauphiné, Source : Münzen & MedaillenGmbH (DE) 1 ECU = 1 unit of accessible ecosystem resource Jean-Louis Weber, 19 July 2013

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

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

11. National Accounts & Ecosystem Capital Accounts Total Ecosystem Capital Capability in ECU Balance sheet of ecological debts & credits in ECU Consumption of ecosystem capital (unpaid costs) & Adjustment of Final Demand (Full Price) Degradation Enhancement Restoration costs Stocks 1990 National Accounts: GDP, Final Demand, Balance Sheet Change 1990-2006 Sustainability coefficients Ecological sustainability of Value Added supported by ecosystem services Landscape Ecological Potential change 1990-2006, by ecosystem landscape units Jean-Louis Weber, 20July 2013

12. Preliminary results of SEEA-ECA in Europe An experimental framework for ecosystem capital accounting in EuropeEEA Technical report No 13/2011 Land cover accounts for Europe 1990-2000 (26 countries), 2006 Updated for year 2006 (34 countries), next update: for year 2012 http://www.eea.europa.eu/publications/an-experimental-framework-for-ecosystem http://www.eea.europa.eu/publications/eea_report_2006_11 Jean-Louis Weber, 19 July 2013

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

14. 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

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

16. Forest species biodiversity change index ~ 1990-2006 : 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

17. People access to ecosystemlandscape/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

18. Thank You ! Jean-Louis WEBER jlweber45@gmail.com