EEA proposals for developing EU ecosystem (capital) accounts

Jan-Erik Petersen1 October 2015

Starting point I: EU roadmap for NCA

Building on SEEA achieve step-wise implementation of :

2015-16: Bio-physical ecosystem asset accounts (at EU level and in MS)

2016-18: Accounting for ecosystem services (at EU level and in MS)

2018-20: Valuation of ecosystems and their services (at EU level and in MS)

Focus of WS

3

Starting point II: the current framework of EEA SECA

Marine fishstocks

Biomass carbon

Land cover/use

Biodiversity/landscape structure

Water quantity

(SEEA water)

Water quality

LEAC reference gridGeo-spatialisation of statistical data

Ecosystem reporting and analysis units

Water basinsGeo-spatialisation of statistical / WFD data

Marine ecosystem

units

What next? Key considerations:

1) Further define purpose and goals for EU system• In relation to policy targets and needs• To harness analytical value-added of accounts

2) Better understand how to develop an EU system of ecosystem accounts that is:

a) Fit for purpose (see a above)b) Matches statistical and analytical quality criteriac) Can become operational with given resources

3) Aim for an fully integrated index or be based on a ‘dashboard account’ ?

Ad 1) What is the analytical value-added of ecosystem accounts?

• Tracking trends in the ecosystem asset, i.e. extent and condition of ecosystems?

• Understanding current and future supply of ecosystem services (by ecosystem & beneficiaries)?

• On that basis develop the green (part of) GDP, i.e. a more complete national ‘wealth accounting’ ?

• Use accounting for understanding linkages, e.g. which sectors cause ecosystem degradation?

• Develop market approaches for managing ecosystems and integrating them into public + business planning?

Ad 1) Managing natural capital sustainably: staying within planetary boundaries..

Ad 2) EEA considerations for ecosystem accounts:

(Simplified) ecosystem (capital) accounts should ideally be:

• Representative of key ecosystem functions / types of ecosystem capital stock

• Targeted on functional ecological units (water basins, ecosystem types etc.)

• Aligned with key EU policy targets & planetary boundaries• Transparent and easily communicable

Look at trends that are likely to show a clear signalFollow an analytical approach aligned with characteristics of

data (i.e. avoiding analytical over-reach)Be nested in existing ecosystem accounting guidance

Ad 2) A reflection on the how (‘step-wise implementation’)

2016

2020

2025

EEA proposal for developing ecosystem accounts

EEA proposes a dashboard approach which combines accounts and indicators (as in GDP and SEEA). Two options can be considered:

1) A dashboard focused on the previous EEA approach (aka technical report 2011 & ENCA, looking at ‘sustainability of use’ etc.) combined with some additional elements, such as ‘fish accounts’ & nutrient balance (if possible)

2) A dashboard that focuses on key aspects of ecosystem status and use, building on simple accounts and indicator information across a wide range of ecosystem capital elements (this could also be developed as a set of ‘mini-dashboards’).

Dashboard 1): focused on existing accounts

Year/

account

Land

(ENCA)

Water

(ENCA)

Carbon

(ENCA)

Agricultural nutrientbalance

Biodiversity/Landscape

(ENCA)

Marine

(Fish stocks)

Year X 100 100 100 100 100 100

Year X + 1 98 97 103 102 97 101

Year X + 2 97 96 104 103 93 100

Accounting result/index 97% 96% 104% Inverse of 103 93% 100%

Potential simplification * ** ** * *** 0

Alternative summing up: red & green dots, % of trends, balance between red and green, ..

Sum up: median, average..

Dashboard 2): combining accounts & indicators

Sum up: median, average..

Alternative summing up: red & green dots, % of trends, balance between red and green, ..

Year/

account

Farm-land

(loss & HNV)

Forests (biomass

use & ‘HNV’)

Inland waters

(assets & quality)

Marine (Fish stocks & nutrient

loading +?)

Biodiversity (NLEP rev & bird trends +

Art. 17 ?)

Urban (Green areas & living

space)

Global (CO2 levels &

critical loads for N)

Year X 100 100 100 100 100 100 100

Year X + 1 98 97 103 102 97 101 101

Year X + 2 97 96 104 103 93 100 102

Accounting result/index 97 % 96% 104% 103 93% 100% Inverse of

102%

Potential simplification * ** ** * *** 0 *

Summing-up – tasks for the workshop

• Review current state of development• Understand technical underpinning of key

component accounts• Identify important policy and analytical uses• Agree main criteria for development of EU

ecosystem accounting system• Identify key design elements of EU system• Develop list of next steps for development of EU

ecosystem accounts