Recording Capital Depreciation
and Ecological Debts in the National Accounts: Possibilities Offered by the Development of
Ecosystem Capital Accounts
Jean-Louis WeberSpecial Adviser on Economic-Environmental Accounting
European Environment Agency
Economists, Policy Makers and Accountants
Policy Makers
Accountants
Economists
• Statisticians• Look mostly at the past flows• Look at future for estimating
assets value (in absence of observable price) and capital consumption
Policy Agenda
Policy Agenda
Analysis & assessments
• Analysts & modelers• Look backward and forward
• Decision makers• Look backward for control
and assessment• Look forward for
programmes & budgets
EvidencesE
vidences, concepts
Theories
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Adaptability to perturbations…
… depends for part on health of human systems and ecosystems: Robustness Productivity Integrity, diversity Resilience Autonomy
A country with high public debt is vulnerable to perturbations… A country with high private debts is vulnerable… A company with high debts is vulnerable… A factory with insufficient security systems is vulnerable… A factory or a household with insufficient insurance coverage is vulnerable… A river basin when deforested is vulnerable to floods… Broad pattern intensive agriculture makes soil vulnerable to erosion Mono-specific crops or forests are more vulnerable to pests …
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Adaptability means (for part…) maintaining & restoring capital
• Maintaining capital is maintaining its wealth, productivity, capability, health, options…
• Capital depreciation (business accounts) or consumption (national accounts) is an estimation of the money to set aside in order to maintain or replace capital.
• Recording depreciation is a major concern of accounting standards, the issue being fairness of measurement of income, of actual price of commodities, and of economic performance.
• Calculation of company’s net income or profit must be net of capital depreciation (IFRS)
• “To be reliable, the information in financial statements must be complete within the bounds of materiality and cost. An omission can cause information to be false or misleading and thus unreliable and deficient in terms of its relevance”
• http://www.ifrs-portal.com/Texte_englisch/Framework/index.htm
• In National Accounts, calculation of net domestic product, net national income and net savings is net of consumption of fixed capital (SNA2008).
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Natural resources are a capital: depreciation should be calculated IFRS and SNA recommend recording depletion of economic natural assets (such as
oil, coal, ores, timber or fish stocks) which owned and managed for profit. IFRS adjusts net income calculation from natural resource depletion
(depreciation). The SNA2008 doesn't adjust Net National Income from depletion (because the
calculation is optional, measurement issues). Degradation of ecosystem functions is not recorded either by IFRS or SNA. Basic
ecological functions are simply ignored although they supply services to people and to the economy itself.
Depreciation or Consumption of Ecosystem Capital (CEC) is an unpaid cost. An unpaid cost is a debt. CEC is the measurement of the increase in ecological debts
(to future generations) and should be recorded accordingly.
Accounting for ecosystem capital degradation and depreciation aims at providing policy makers with measurements necessary to calculate the real national income, the true prices of the commodities that we use and when this price is not paid, to record the amount of debts to nature which are in reality debts to future generations.
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
National Accounts:Recurrent demands for improved economic indicators and aggregates
• Historical pioneer “green accounting” projects: Norway, Canada, France, Philippines, Indonesia, the Netherlands, Spain…
• Rio1992, Agenda 21• UN SEEA1993 to “adjust” the UN System of National Accounts. SEEA revised in 2003• New SEEA revision by2012/13, including now a special volume on ecosystem accounts and
valuation• Recent initiatives:
– Beyond GDP Conference 2008– Potsdam 2008 G8+5 initiative and TEEB– Stiglitz/ Sen/ Fitoussi report on the measurement of economic performance 2009– New CBD Aishi-Nagoya Strategy 2010: demand for the inclusion of biodiversity and ecosystem value
into national accounts – World Bank’s new Global Partnership for “Green Accounting” and Ecosystem Valuation– References to environmental accounts for measuring progress in Green Economy, Green Growth,
Resource Efficiency…• Initiative(s) in preparation for Rio+20• In Europe, new Regulation on Environmental Accounts: Eurostat (the economy-environment
interface) and the EEA (ecosystem capital accounts)
UN manual for environmental-economic accounting: SEEA2003Enlargement of the System of National Accounts (SNA)
Natural resources EcosystemsEconomic
assets (SNA) Non-economic
assets
Openingstocks
Opening stocks Opening State
SNAtransactions
and otherflows
Changes instocks
Changesin stocks
Economicactivities,
naturalprocesses,
etc.
Changesin state
Closing stocks Closing stocks
Closing state
Described in SNA
RM HASSAN - UN The System of Environmental and Economic Accounting (UN 2003) - RANESA Workshop June 12-16, 2005 Maputo
Volume 1
The SNA satellite accounts for the
environment
expenditure, taxes, hybrid accounts, physical flows,
sub-soil, energy, water, land,economic assets depletion
Volume 2
Ecosystem capital accounts
Ecosystem stocks and quality, ecosystem services, benefits and maintenance
costs…
Revision SEEA2012/13
Negative feedbacks of ecosystem degradation on production and wellbeing
Impacts on ecosystem capacity of delivering services/benefits
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
The fast track implementation of ecosystem capital accounts in Europe
• Based on:– European experience– Current development of ecosystem accounts in the UN SEEA revision
• Objectives:– Meet the policy demand– Accounts for 27 EU countries– Best use of geographical information when possible, e.g. 1 km x 1km grid– Use of official statistics for socio-economic data– Annual accounts 2000-2010– Physical accounts first, by 2012, followed by monetary accounts
make it relevant but simple
Products &
economic assets
Fossil energy & materials
Biomass/carbon
Water
Land systemic services
Economy performance
Economic growthTradeValue-added, income, profit… ConsumptionInvestment Wealth (non-financial and financial assets)
Economic health(net savings, assets and debt quality, accountability, prices, well-being, knowledge)
Ecosystem potential (capacity to deliver services)
Ecosystem productivityFlowsAccumulation Stocks
Ecosystem health (biodiversity, integrity, resilience, interdependence)
Capital maintenance(to remediate degradation)
Accounting for the performance(s) of 2 co-evolving systems: resources, productivity and health
Economic systemEc
osys
tem
Use of natural
resources
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
The narrative behind Ecosystem Capital Accounts: 1- Ecosystems deliver altogether 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
The narrative behind Ecosystem Capital Accounts: 2- Only a surplus is accessible for human use
Ecoproduct (of cycling and reproductive systems/ capital) are produced by means of other ecoproducts. The ecosystem production function includes a surplus ecoproduct that can be used by the economy. (from Anthony Friend 2004)
Economy
Basic eco-product
Non-basic eco-product
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
Necessary for ecosystem reproduction (conservation of ecosystem health, integrity, functions & services)
Surplus accessible for harvest/abstraction
The narrative behind Ecosystem Capital Accounts: 2- Only a surplus is accessible for human use
Basic eco-product
Non-basic eco-product
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
Possible compensation = artificial input (irrigation,
energy, fertilizers, infrastructures…)
Challenge = maximise yields while maintaining natural functions and biodiversity
Necessary for ecosystem reproduction (conservation of ecosystem health, integrity, functions & services)
Surplus accessible for harvest/abstraction
Non-sustainable harvest/abstraction Economy
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
About natural resource: availability vs. accessibility
• Available resource: the total resource (actual stocks and flows) which can be used in principle (but should to be shared between economy and nature…).
• Accessible resource: the surplus (actual stocks and flows) which can be used considering 1) physical constraints (timeliness and location, cyclical risks, bio-chemical quality) & 2) the amount to be left to nature for ecosystem reproduction. N.B.: When returned to the ecosystem (leftovers in agriculture or forestry, water returns…) the resource destroyed or modified during the production process becomes accessible again.
Ecosystem capital accounts refer to accessible resource and intensity of use.
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Accessible resource: carbon/biomass, freshwater, systemic services
Accessible resource =Stocks (soil, forests, aquifers, reservoirs, landscapes…)Minus inaccessible stocks
Physical inaccessibility (deep aquifers …)Inappropriate quality (salted or polluted water, non arable land…)
Plus flows (NPP, effective rainfall…)Minus inaccessible flows
Physical inaccessibility (most of flood water, distance, non transportable resource, timeliness issues, water evaporated by irrigation…)
Inappropriate quality (polluted water)Maintenance of stocks (soil carbon, forests stock of timber, aquifer level,
dilution of pollutants in rivers…)
Plus/minus adjustment for stress, risk
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Example of accessible water adjustment: occurrence of soil water stressNumber of days when no water was available for plants in 2001, 1 km^2 grid
Source: Blaz Kurnik, EEA, 2011
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
The narrative behind Ecosystem Capital Accounts: 3 – As a capital, ecosystems produce altogether 3 broad types of services between which there is no compensation or tradeoff: biomass/carbon AND freshwater AND systemic services. Ecosystem capital potential (& degradation) can be measured by combining measurements of these 3 broad services (accessible resources).
1 - Accessible carbon surplus
2 - Accessible water surplus
3 - Accessibleecosystem systemic services
Total Ecosystem Capital Potential
&
Ecosystem Capital Degradation
Measurement with a new physical currency: EPUE for Ecosystem Potential Unit-Equivalent
GDP,National Income,
Final Consumption at Purchasers’ price
Healthy ecosystem deliver services to the economy
& to the public well-being
Ecosystem assets/capital () Ecosystem assets/capital ()
The narrative behind Ecosystem Capital Accounts:4 – The simplified ecosystem capital accounting circuit
The narrative behind Ecosystem Capital Accounts:4 – The simplified ecosystem capital accounting circuit
Adjusted macro economic aggregates
Adjusted capital consumptionFinal demand at full price
Adjusted net domestic product (or net national income)
ES based economic
benefits (€)
ES based economic benefits (€)
ES based economic
benefits (€)
ES based economic benefits (€)
ES based economic benefits (€) ES based economic benefits (€)
Ecosystem degraded
by over-use ()
(Unpaid) costs needed to remediate ecosystem
degradation (€)
Economic system(including natural assets & ecosystem services
Economic system(including natural assets & ecosystem services (and €)
Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011
Physical accounts of E-services Physical accounts
of E-services
t1
t2
()
t2 t1
Degradation of ecosystem capital
…based on remediation costs
…based on assets values
&
addition
€t2 t1 €
Valuation of E-services
€
Valuation of E-services
€ €Assessment of
remediation costs by issues
Asse
ts
Flow
s
()
Estimation of ecosystem capital depreciation: 2 possible ways
NPV & addition
€
NPV & addition
€
Asse
ts €
Calculation
of unit costs
Account of pressures
responsible of degradation
Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
From theory to statistics and accountsTheoretical background (very incomplete…):
– Georgescu-Roegen (The Entropy Law and the Economic Process (1971), – Odum (emergy) – Resource depletion: Hotelling, El Serafy– System approach : Joel de Rosnay (The macroscope, 1975)– Dissipative structures: Prigogine (The New Alliance, 1986)– L'économique et le vivant: René Passet (1977)– Natural resource economy: Naredo (1987)– Urban metabolism: Duvignaud– Global biotic regulation: Gorshkov– Co-evolving systems: Norgaard– Ecosystem services: Long (1972), Costanza and De Groot, Millennium Ecosystem Assessment
(2003)– Interaction between scales: Hollin (“panarchy”)– Landscape ecology (UK)– Ecosystem units: socio-ecological systems (Gallopin, Carpenter, Rockström, MA2003…)– Ecosystem health (D. J. Rapport), resilience (the Resilience Alliance)
from economic-ecological theory to statistical practice and accounts : statistical units and classifications
Main relations between classifications & statistical units in the revised SEEA
(from UNCEEA 2009 – EEA & FAO)
Monetary Statistics of Products
Physical Statistics of Products
Land Use: productive land
functions
Land Cover: biophysical land units
Ecosystems:Socio-ecological landscape units (SELU)
(terrestrial, marine & atmospheric)
Land Functions & Ecosystem Services
Institutional & Production Units
(sectors & industries)
Land Ownership(private & public)
SNA & SEEA: assets “shared” by the economic and the ecosystem
Dw
ellin
gs &
oth
er
build
ings
and
st
ruct
ures
Mac
hine
ry a
nd
equi
pmen
t
Cul
tivat
ed b
iolo
gica
l re
sour
ces
Inve
ntor
ies
Oth
er p
rodu
cts
Land
Min
eral
and
ene
rgy
rese
rves
Non
culti
vate
d bi
olog
ical
res
ourc
es
Wat
er a
nd o
ther
na
tura
l res
ourc
es
Inta
ngib
le a
sset
s (c
ontr
acts
, lic
ence
s…)
Land x xLand cover systems x x O x xBiomass/carbon x x O x OWater O xBiodiversity O O O O OSelf regulating capacity O O O O OHealth, overall regenerative capacity N N N N
x explicitly recorded as economic assetO partly or indirectly recorded as economic assetN not recorded, externality
Assets hold by ecosystem units (forests, agro-systems,
wetlands…)
Non produced assetsProduced assetsAssets hold by economic units (enterprises, government bodies, households…)
Adapted from Ivo Havinga and Daniel Clarke, 2011
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Common International Classification of Ecosystem Services (draft EEA, UNEP & UNSD)
Theme Class GroupTerrestrial plant and animal foodstuffs
Freshwater plant and animal foodstuffs
Marine plant and animal foodstuffs
Potable water
Biotic materials
Abiotic materials
Renewable biofuels
Renewable abiotic energy sources
Bioremediation
Dilution and sequestration
Air flow regulation
Water flow regulation
Mass flow regulation
Atmospheric regulation
Water quality regulation
Pedogenesis and soil quality regulation
Lifecycle maintenance & habitat protection
Pest and disease control
Gene pool protection
Aesthetic, Heritage
Religious and spiritual
Recreation and community activities
Information & knowledge
Symbolic
Intellectual and Experiential
Provisioning
Regulation and Maintenance
Cultural
Nutrition
Materials
Energy
Regulation of wastes
Flow regulation
Regulation of physical environment
Regulation of biotic environment
CICES: Table E.2: Proposed Thematic, Class and Group Structure – source: EEA & Roy Haines-Young, Presented at UNCEEA 2010
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011 sampling, questionnaires
Land cover classification based on FAO LCCS3Land Cover Types (SEEA vol. 1)
zoning
and derived Land Cover Functional Units (SEEA vol.2)
Code Title 01 Artificial surfaces (including urban and associated areas) 01.a Artificial surfaces from 10 to 50 % 01.b Artificial surfaces from 51 to 100 % 02 Herbaceous crops 02.a Small size fields of herbaceous crops rainfed 02.b Small size fields of herbaceous crops irrigated or aquatic (rice) 02.c Medium to large fields of herbaceous crops rainfed 02.d Medium to large fields of herbaceous crops irrigated or aquatic (rice) 03 Woody crops 03.a Small size fields of woody crops 03.b Medium to large fields of woody crops 04 Multiple or layered crops 05 Grassland 05.a Natural grassland 05.b Improved grassland 06 Tree covered area 06.a Tree covered area from 10 to 30-40 % 06.b Tree covered area from 30-40 to 70 % 06.c Tree covered area from 70 to 100 % 07 Mangroves 08 Shrub covered area 08.a Shrub covered area from 10 to 60 % (open) 08.b Shrub covered area from 60 to 100 % (closed) 09 Shrubs and/or herbaceous vegetation aquatic or regularly flooded 09.a From 2 to 4 months 09.b More than 4 months 10 Sparsely natural vegetated areas 11 Terrestrial barren land 11.a Loose and shifting sand and/or dunes 11.b Bare soil, gravels and rocks 12 Permanent snow and glaciers 13 Inland water bodies 14 Coastal water bodies and inter-tidal areas 14.a Coastal water bodies (lagoons and/or estuaries) 14.b Inter-tidal areas (coastal flats and coral reefs)
01 Urban and associated developed areas 02 Medium to large fields rainfed herbaceous cropland 03 Medium to large fields irrigated herbaceous cropland 04 Permanent crops, agriculture plantations 05 Agriculture associations and mosaics 06 Pastures and natural grassland 07 Forest tree cover 08 Shrubland, bushland, heathland 09 Sparsely vegetated areas 10 Natural vegetation associations and mosaics 11 Barren land 12 Permanent snow and glaciers 13 Open wetlands 14 Inland water bodies 15 Coastal water bodies 16 Sea (pro memory)
Source: FAO (DiGregorio and Ramaschielo) & EEA (Steenmans & Weber) 2011
provisional
Ecosystem accounting and statistical units (continued)
SNA’s statistical units don’t record ecosystem degradation need for other units…
Theoretical units vs. observation units (proxies for collecting data)
• Theoretical units: characteristic systems into which natural and socioeconomic elements interact to transform ecosystem functions into goods and services:
– Functional units producing elementary services
– “Socio-ecological systems”, “socio ecosystems” or “Socio-ecological production landscapes” (the Japanese satoyama and satoumi)
• Observation units: – For which we can collect data in a systematic
way– Mostly surface units: “geo-systems”, land
cover units, functional administrative units, ownership units…
Japan Satoyama Satoumi Assessment, 2010.Satoyama-Satoumi Ecosystems and Human Well-being: Socio-ecological Production Landscapes of Japan – Summary for Decision Makers.United Nations University, Tokyo, Japan.
Japan Satoyama Satoumi Assessment, 2010.Satoyama-Satoumi Ecosystems and Human Well-being: Socio-ecological Production Landscapes of Japan – Summary for Decision Makers.United Nations University, Tokyo, Japan.
Land cover functional units & Socio-ecological landscape units(SELU)
ZOOM: SELU in Central Europe
ZOOM: Land cover functional units by SELU
t0
Total ecosystem capital potential & change
t1
Improvement
Degradation
Ecosystem physical degradation, sustainable benefits from ecosystem services and non-paid maintenance costs
Consumption of ecosystem capital (non-paid costs)
Sustainable benefits
(income from key ecosystem services)
Sustainable use
coefficients
Economic statistics & national accounts
Mean restoration
prices Improvement
Degradation
Sustainable benefits
(Value Added from key ecosystem
services)
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Ecosystem-Economy integrated accounts
Stock
Natural production
Natural consumption
Storage/Accumulation
Stock
Extraction/ harvesting
Returns/ Formation (sectors)
Final Consumption (sectors)
Extraction/ harvesting
Returns/ Formation
Final Consumption
PHYSICAL BALANCES
QUALITY/HEALTH INDEXESQUALITY/HEALTH INDEXES
LINKAGE TABLESLINKAGE TABLES
USE OF ECOSYSTEM RESOURCE
…USE OF FOSSIL RESOURCE
…USE OF FOSSIL RESOURCE
EMISSIONS, RESIDUALS
From resource
From fossil resource
EMISSIONS, RESIDUALS
From resource
From fossil resource
EXPENDITURES
IMPORTS-EXPORTS
Actual
Virtual (embedded)
IMPORTS-EXPORTSIMPORTS-EXPORTS
Actual
Virtual (embedded)
To land accounts
To water accounts
To biodiversity indexes
VigourStability, integrity Resilience Taxes, voluntary payments
Ecosystems Economy
SEEA Volume 2SEEA Volume 1
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
The draft framework
Tables by Ecosystem Units Tables by Economic Units
Countries and biophysical geographical breakdowns or administrative regions
Countries and administrative regions or biophysical
geographical breakdowns
Ecosystem statistical and accouting units: socio-ecological landscape units, elementary functional units
(land cover, river reaches…), ecosystem assets, ecosystem service units
Economic statistical and accouting units:
institutional units, establishments, economic assets, commodities
[A] Land cover stocks and flows basic account: Gross and Net Land Cover Change
Land use statistics
[B] Ecosystem Capital Carbon/biomass Account: Net Ecosystem Carbon Balance (NECB)
& Net Ecosystem Accessible Carbon Surplus (NEACS)
Physical supply and use tables & economic assets accounts. Agriculture, forestry & fishery statistics
[C] Ecosystem Capital Water Account: Total Ecosystem Accessible Fresh Water (TEAW)
& Net Ecosystem Accessible Fresh Water Surplus (NEAWS)
Physical supply and use tables & economic assets accounts. Water use statistics
[D] Landscape green infrastructure accounts: Landscape Ecosystem Potential (LEP),
Green Accessible Landscape Infrastructure (GALI) & Rivers Ecosystem Potential (REP)
[E] Ecosystem Capital Biodiversity Account: Biodiversity Infrastructure Integrity (BII) & Ecosystem's Biodiversity Rating (EBR)
[F1] Ecosystem Total Potential Account, Net Change & Ecosystem Capital Degradation (ECD),
in Ecosystem Potential Unit Equivalents (EPUE)
[F2] Account of Territorial Ecosystem Capital Degradation (TECD) by Stress Factors (in EPUE)
[G] Demand and Accessibility to Ecosystem Services: Ecosystem Carbon/biomass per capita,
Ecosystem Fresh Water per capita, Green Infrastructure Neighbourhood Ecosystem Services (GINES)
[I] Estimation of unit costs of ecosystem capital restoration by Stress Factors
Environmental protection and management expenditure (part)
[J] Ecosystem Capital Depreciation: Territorial Consumption of Ecosystem Capital in money
[K] Account of Ecosystem Capital Degradation & Depreciation Embedded into Imports and Exports,
in EPUE & in money
[M] Economic aggregates and additional adjustments for CEC, in money: Gross Domestic Consumption of Ecosystem Capital
(GDCEC), GDCEC Adjusted Net Domestic Product, Final Consumption at Full Price (including GDCEC)
Jean-Louis Weber 22 September 2011
Ecos
yste
m T
otal
Po
tenti
alEc
osys
tem
D
epre
ciati
on
[H] Ecosystem Physical Balance Sheet: Stocks and Change of Physical Assets & Physical Liabilities, in EPUE
[L] Account of Macro-economic Benefits induced by Sustainable Ecosystem Services: Degradation-Adjusted Total Induced Value Added (by SELU & ISIC)
[N] Ecosystem Financial Balance Sheet: Change of Financial Assets and Stocks and Change of Financial Liabilities
Ana
lyti
cal a
nd
repo
rting
uni
ts,
clas
sific
ation
sBa
sic
acco
unts
Polluting emissions and waste generation by sectorsAgriculture, forestry & forestry statistics, Land use accounts
Basic accounts
Synthesis tables in physical units
Monetary accounts
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
The basic accounts
by ecosystem units by economic sectors
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
The synthesis tables
by ecosystem units by economic sectors
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
The monetary accounts
by ecosystem units by economic sectors
N
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Key Indicators and Aggregates• Net Ecosystem Accessible Carbon Surplus (Use/NEACS reflects intensity of use;
it integrates resource efficiency and ecosystem)• Net Ecosystem Accessible Fresh Water Surplus• Green Accessible Landscape Infrastructure (and demand of services in the
Neighbourhood of human settlement (GINES))
• Net Total Ecosystem Capital Potential and Ecosystem Capital Degradation (integrates acessible carbon, water and landscape and mean biodiversity rating basis to calculate Consumption of Ecosystem Capital in €)
• Final Consumption at Full Price (the full cost of commodities in € integrates purchasers’ prices and non-paid domestic consumption of ecosystem capital (CEC), and relates to unfair trade and ecological debts)
• Imports at Full Price (total of imports at CIF price and Ecosystem capital depreciation virtually embedded into imports)
• CEC Adjusted Net Domestic Product (or/and Net National Income, or/and Net Savings) (a more complete adjustment of Net Product, Net Income or Net Savings includes in addition subsoil resource depletion).
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
About ecological debts…
• CEC is a new debt to national future generations• CEC can be embedded into imports and exports there are external debts• Other ecological debts don’t result from CEC but from collectively stated targets; they
correspond to recovery of historical or degradation demand for improvements; they are stated in legal documents (national law or programme, international conventions with quantified objectives…) which are voted by parliaments.
• Physical Debts and Monetary Debts are recorded separately; the repayment of the monetary debt doesn’t not necessarily extinguishes the physical debt is CEC has been underestimated; oppositely, unexpected natural processes or changes in land use may lead to a “cheaper” recovery cost.
• Financial ecosystem assets, physical and monetary units exist as well. They are the are the counterpart of:
– The non-financial natural assets in the SNA sense (owned and managed for profit); they should never be consolidated with debts or rights related to non-market values
– Rights for compensation in case of exported CEC; such right could be claimed in counterpart of actual restoration only;
– Rights related to verified improvements (by an international organisation)– International allocation of rights regarding global ecosystem issues and national potentilas
Bertrand de Jouvenel 1968: “Because National Accounts are based on financial transactions, they account nothing for Nature, to which we don’t owe anything in terms of payments but to which we owe everything in terms of livelihood.”
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
About ecological debts… other consolidation rules for ecological debts:
– Physical debts are not directly transferable; e.g. acquisition of debts from foreign country (embedded in imports) cannot be extinguished by ecosystem improvement in the buyer country;
– When created by physical debts, monetary debts are not mechanically extinguished by repayment but by the extinction (remediation) of the physical debt itself;
– Because physical ecosystem capital assets are not valued, monetary debts cannot be consolidated with monetary ecosystem non-financial assets;
– Monetary debts can be consolidated with financial ecosystem capital assets in the context of international mitigation systems if they include initial allocations of (non transferable) ecosystem capital rights and/or recording systems for ecosystem improvement and consolidation rules.
– The physical counterparts (units: Ecosystem Potential Unit-Equivalents) of approved allocations and improvement s are not transferable. However they can be leased to ecological debtors (countries, business…)
Jean-Louis Weber Intenational Forum on Ecosystem Adaptability Science, Tohoku University, Sendai, 16-18 Nov. 2011
Thank you!
ありがとう!
Jean-Louis [email protected]@gmail.com