1

The System of The System of Environmental-Economic Accounting for Water Environmental-Economic Accounting for Water

(SEEAW)(SEEAW)Part 2 Part 2

Training Session on the System of Environmental-Economic Accounting for Water (SEEAW) for the Arab Gulf Countries

August 25-28, 2008UN House- Beirut-Lebanon

Michael VardonMichael VardonUnited Nations Statistics DivisionUnited Nations Statistics Division

2

OutlineOutline

• Why have environmental accounting?• Water Accounting and the Global Water

Partnership and Integrated Water Resource Management

• SEEA Water• development • structure• standard tables• Indicators from SEEA Water

• Lessons from implementation

3

Why an accounting approach?Why an accounting approach?

• Encourages the adoption of standards• Introduces accounting concepts to environmental

statistics• Improves both economic and environmental statistics

by encouraging consistency• Implicitly defines ownership and hence responsibility

for environmental impacts• Encourages the development of comprehensive data

sets• Facilitates international comparisons

4

Strengths of the accounting Strengths of the accounting approachapproach

• Organised body of information facilitates integrated economic-environmental analysis (complements sustainable development indicators, modelling)

• Comprehensive and consistent, routinely produced

• Provides a system into which monetary valuations of environmental costs can be incorporated

5

Environmental-Economic Accounting Environmental-Economic Accounting and Environment Statisticsand Environment Statistics

Environment statistics:• Often developed to

answer one particular question or problem

• Difficult to figure out if all information is included

• Not always easy to see the whole picture, or how it relates to other things

• Typically not integrated with economic statistics

Separate piles of information

6

Environmental-Economic Accounting builds Environmental-Economic Accounting builds on Environment and Economic Statisticson Environment and Economic Statistics

Environmental accounts:• Help to make sense of

the larger picture

• Help to identify pieces that are missing

• Can make connections to other statistics, especially to economic statistics

Integrated information

7

Terminology is not always consistent among economists, environmental statisticians, scientists and policy makers

=> Need to use a clear, agreed terminology

One of the SEEA main contribution is the standardisation of terms and definitions

TerminologyTerminology

8

Keys concepts of SEEAKeys concepts of SEEA

Stocks Flows

Volume(e.g. tonnes, m3)

Value(e.g. $, £, ¥, €)

9

The role and value of Water Accounting

“SEEAW provides the much-SEEAW provides the much-needed conceptual framework needed conceptual framework

for monitoring and assessment”for monitoring and assessment”

Roberto Lenton, Roberto Lenton, Global Water PartnershipGlobal Water Partnership

Global Water Partnership

10

Integrated Water Resources Integrated Water Resources Management: core featuresManagement: core features

• Involves developing efficient, equitable and sustainable solutions to water and development problems

• Involves aligning interests and activities that are traditionally seen as unrelated or not well coordinated (horizontally and vertically)

• Needs knowledge from various disciplines as well as insights from diverse stakeholders

• Not just water: involves integrating water in overall sustainable development processes. Also requires coordinating the management of water with land and related resources

11

The challenge:

Monitoring and assessing water resources

for the MDGs within

an IWRM approach

Global Water Partnership

12

Development of SEEA WaterDevelopment of SEEA Water

• Sub-group on Water Accounting established at the 2003 meeting of the London Group (Rome)

• Sep 2004 SEEA Water discussed at London Group Meeting (Copenhagen)

• May 2005 1st draft SEEA Water discussed in by sub-group (New York)

• May 2006 2nd Draft discussed at the User-Producer Conference (Voorburg)

• Jun 2006 2nd Draft discussed by London Group and UNCEEA• Jul-Dec 2006 SEEA Water finalised by electronic discussion• More than 20 experts participated in the Sub-group• UNSD coordinated the group and prepared the various

manuscripts

13

SEEA Water – an interim SEEA Water – an interim international statistical standardinternational statistical standard

• Part 1 of SEEA Water was adopted by the United Nations Statistical Commission in March 2007 as an interim statistical standard

• Part 2 contains the elements of SEEA Water for which there is less country experience and there is still some debate

• SEEA Water has been recognized as useful by the users of information

14

SEEA WaterSEEA WaterOverviewOverview

Economy

Exports

Evapo-transpiration

Other Industries(incl. Agriculture)

Imports

Abstraction

Sea

Atmosphere

Collection ofprecipitation

Households

Abs

trac

tion

Water collection,treatment and supply

Inland Water Resource System

Surface water(reservoirs, lakes, rivers,snow, ice and glaciers)

Soil water

Groundwater

upstreambasins and

aquifersoutside

the territoryof reference

Natural transfers(e.g. infiltration,seepage, etc.)

Sea

Inflows

downstreambasins and

aquifersoutside

the territoryof reference

Outflows

Pre

cipi

tatio

n

Eva

po-

tra

nspi

ratio

n

Sewerage

Rest ofthe WorldEconomy Rest of

the WorldEconomy

Re

turn

s

Ret

urn

s

Ret

urn

s

• Stocks and flows• Economy and

environment

15

SEEW - StructureSEEW - Structure9 Chapters, 2 parts:• Part 1

• Ch 1. Introduction• Ch. 2 Water Accounting Framework• Ch. 3 Physical Supply and Use Tables• Ch. 4 Emission Accounts• Ch. 5 Hybrid and Economic Accounts• Ch. 6 Asset Account

• Part II• Ch. 7 Quality Account• Ch. 8 Valuation• Ch. 9 Policy use

16

12 Standard Tables12 Standard Tables1. Physical supply 2. Physical use3. Gross and net emissions4. Emissions by ISIC 375. Hybrid (Monetary and Physical) supply6. Hybrid use7. Hybrid supply and use8. Hybrid water supply and sewerage for own use9. Government accounts for water related collective consumption services

(Monetary)10. National expenditure for waste management (Monetary)11. Financial accounts for waste water management (Monetary)12. Asset account (Physical)

12 Supplementary tables

17

Physical water use: Standard Table IPhysical water use: Standard Table IPhysical units

 

Industries (by ISIC categories)

Households

Rest of the world

Total 1

2-33, 41-43 35 36 37

38,39,

45-99

Total

From the environment

U1 - Total abstraction (=a.1+a.2= b.1+b.2):      

a.1- Abstraction for own use      

a.2- Abstraction for distribution      

b.1- From water resources:      

Surface water      

Groundwater      

Soil water      

b.2- From other sources      

Collection of precipitation      

Abstraction from the sea      

Within the economy

U2 - Use of water received from other economic units                    

U=U1+U2 - Total use of water                    

18

Physical water supply: Standard Table IIPhysical water supply: Standard Table IIPhysical units

 

Industries (by ISIC categories)

Households

Rest of the world

Total 1

2-33, 41-43 35 36 37

38,39,

45-99

Total

Within the economy

S1 - Supply of water to other economic units                    

of which: Reused water        

Wastewater to sewerage                    

To the environment

S2 - Total returns (= d.1+d.2)      

d.1- To water resources      

Surface water      

Groundwater      

Soil water      

d.2- To other sources (e.g. Sea water)      

S - Total supply of water (= S1+S2)                    

Consumption (U - S)                    

19

Water emissions: Standard Table IIIWater emissions: Standard Table IIIPhysical units

Pollutant

Industries (by ISIC categories)

Households

Rest of the world

Total 1

2-33, 41-43 35 36

38,39, 45-99

Total

Gross emissions (= a + b)                  

a. Direct emissions to water (= a1 + a2 = b1 + b2)  

a1. Without treatment  

a2. After on-site treatment  

b1. To water resources  

b2. To the sea  

b. To Sewerage (ISIC 37)                  

d. Reallocation of emission by ISIC 37    

e. Net emissions (= a. + d.)                  

20

Hybrid water use: Standard Table VIHybrid water use: Standard Table VIPhysical and monetary units

 

Intermediate consumption of industries (by ISIC categories) Actual final consumption

Capital formation

Exports

Total uses at purchaser’s price1

2-33, 41-43

35

36 37

38,39, 45-99

Total industry

Households

Government

Total

of which: Hydro

Final consumpt

ion expenditu

res

Social

transfers in kind from

Government and NPIS

Hs Total

Total intermediate consumption and use (monetary units)                              

of which: Natural water (CPC 1800)      

Sewerage services (CPC 941)      

Total value added (monetary units)                              

Total use of water (physical units)          

U1 - Total Abstraction          

of which: a.1- Abstraction for own use          

U2 - Use of water received from other economic units                              

21

Physical water assets: Standard Table XIIPhysical water assets: Standard Table XIIphysical units

 

EA.131 Surface water

EA.132 Groundwater

EA.133 Soil water Total

EA.1311 Reservoirs

EA.1312 Lakes

EA.1313 Rivers

EA.1314 Snow, Ice and

Glaciers

Opening Stocks              

Increases in stocks              

  Returns from the economy    

  Precipitation    

  Inflows    

  from upstream territories    

  from other resources in the territory              

Decreases in stocks    

  Abstraction    

  of which Sustainable use    

  Evaporation/Actual evapotranspiration    

  Outflows    

  to downstream territories    

  to the sea    

  to other resources in the territory              

Other changes in volume              

Closing Stocks              

22

Basic concepts and definitionsBasic concepts and definitions

• Abstraction from environment

• Supply and use within economy

• Returns to environment

Economy

Exports

Evapo-transpiration

Other Industries(incl. Agriculture)

Imports

Abstraction

Sea

Atmosphere

Collection ofprecipitation

Households

Ab

stra

ctio

n

Water collection,treatment and supply

Inland Water Resource System

Surface water(reservoirs, lakes, rivers,snow, ice and glaciers)

Soil water

Groundwater

upstreambasins and

aquifersoutside

the territoryof reference

Natural transfers(e.g. infiltration,seepage, etc.)

Sea

Inflows

downstreambasins and

aquifersoutside

the territoryof reference

Outflows

Pre

cip

itatio

n

Eva

po

-tr

an

spir

atio

n

Sewerage

Rest ofthe WorldEconomy Rest of

the WorldEconomy

Re

turn

s

Re

turn

s

Re

turn

s

23

Source of pressure on water resources: • Macro trends in total water use, emissions, water

use by natural source and purpose, etc. ‘Decoupling’ economic growth and water use, pollution

• Industry-level trends: indicators used for environmental-economic profiles

• Technology and driving forces: water intensity/productivity and total (domestic) water requirements to meet final demand

• International transport of water and pollution

Indicators from SEEA WaterIndicators from SEEA Water

24

Indicators: economic growth and water pollution

80

85

90

95

100

105

110

115

120

1996 1997 1998 1999 2000 2001

nutrients

metals

wastewater

GDP

Netherlands: water pollution and economic growth, 1999-2001

25

Indicators: economic growth and water use

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1993/94 1994/95 1995/96 1996/97 1997/98 1998/99

Volume of water

Per capita water use

GDP per m3 water

Botswana: water use and economicGrowth, 1993-1998

26

Pulp, paper and paper products

0 20 40 60 80 100

P roduction value

Value added

Hours worked

Use of energy

Use of self-supplied water

Use of distributed water

Use of water for cooling

Use of water in the industrial process

Other uses of water

Direct discharge of wastewater

Discharge to MWWTP

EP E internal expenditures

EP E payments to MWWTP

EP I for wastewater

Chemicals and chemical products

0 20 40 60 80 100

Environmental Economic Profiles Sweden 1995

27

International transport of pollution

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Arsenic Copper Zinc

Share of pollution in rivers in the Netherlands originating abroad

28

Projecting future water demandsAustralia 2050

29

Modelling Effects of Price Changes:Murray-Darling River Basin Australia

Based on historical water use & price data, simulated impact on GDP of doubling water prices and the expected increases in water use efficiency (WUE) of 1-2%

1% increase WUE

2% increase WUE

Irrigated agriculture -24 78

Dryland agriculture -51 -112

Food and fibre processing 44 97

Other industries 262 410

Total impact on GDP 253 521

Increase in GDP, A$million

30

Key lessons from countries Key lessons from countries implementing SEEA Waterimplementing SEEA Water

1. Build on existing statistical/scientific knowledge and information2. Cooperation essential• Within statistical offices• Between statistical offices, water departments, economic/planning

departments and agricultural departments• With the water supply industry• With the scientific and research communities• Between users and producers of information3. A phased approach is needed• Start with issues of most importance. In water scarce countries it has

been water supply and use. In industrialized countries it has been pollution.

4. Pilot or experimental accounts are very useful• Users will appreciate the benefits more easily with concrete examples,

even if they are small scale.

31

Contact detailsContact details

Michael VardonAdviser on Environmental-Economic AccountingUnited Nations Statistics DivisionNew York 10017 USARoom DC2 1532

Phone: +1 917 367 5391Fax: +1 917 363 1374Email: vardon@un.org