LUCAS Task Force 30 September 2015 Item 4 – Update on the Knowledge Innovation Project on Accounting for Natural Capital and ecosystem services (KIP INCA) in the EU Ekkehard.Petri@ec.europa.eu, Eurostat

Outline What is the idea behind INCA? The structure of the INCA project

Policy context for INCA EU Biodiversity Strategy: Integrate natural capital into accounting and reporting systems (valuation) EU 7th Environmental Action Programme: Objective 1: 'protect, conserve and enhance the European Union’s natural capital' Objective 5: build environmental knowledge base Environment Knowledge Community at EU level to support knowledge base -> EU project on natural capital and ecosystem services

What do we need for the accounting of ecosystems in the EU? We need biophysical accounts for direct use as a basis for valuation studies, upscaling We need an EU data layer of accounts reference frame for countries data foundation for responding to EU policies Knowledge Innovation Project on ‘accounting for natural capital and ecosystem services’ We need a stepwise approach towards a common methodology

The starting point Many different & separate & expensive data collections but not really tailored towards mapping and assessing ecosystems LUCAS (ground observation) Biodiversity monitoring COPERNICUS (satellite images) Corine Land Cover Forest statistics Farm Structure Survey (agricultural census) Natura 2000 data Et cetera

Working assumptions A lot of data are available but not immediately fit for purpose. Issues are harmonisation, scale and scope, reference dates. Member States information is currently not always available, and it would take too long to create.

What is the idea behind INCA? The EU needs a data platform to describe the extent, condition, and trends in ecosystems and their services. INCA will use and integrate all available EU wide data collections (LUCAS, Copernicus, MAES, environmental reporting). INCA will also propose changes to existing data to meet accounting requirements (-> permanent improvement). Models will be used to transfer data into accounts and fill data gaps INCA accounts should be integrated with other accounting systems such as SEEA and NSA -> INCA to respect UN standards Member States should be able to link their national systems into INCA.

The INCA approach Methodology SEEA-EEA for the methodology MAES as a conceptual framework and data source SEEA and NSA for accounting standards Approach EU wide data Experiments, modelling and iterations Over time better adjustment of existing data to ecosystem accounting requirements

Structure of the INCA project Project owner is the Environment Knowledge Community EKC EKC is an EU inter-services group involving key environmental data users and providers, i.e. DG ENV, DG CLIMA, DG JRC, DG ESTAT, DG RTD and EEA to strengthen the knowledge base for the 7th EAP. Knowledge Innovation Projects KIPs have the ambition to close gaps in environmental knowledge adopting an innovate approach.

INCA partners (Eurostat, ENV, EEA, JRC, RTD) Experience with geospatial-statistical data integration Operates LUCAS Lead service for geospatial information in the Commission Statistics on land use/ land cover, forest, agriculture Environmental-Economic Accounts (SEEA) Leads phase 1 DG Environment Provides the policy context and will be one of the prime users Responsible for MAES

EEA Principal information provider on the state of the environment in Europe Long term experience in ecosystem accounting, involved in MAES Operates data centres on water and biodiversity Responsible for CORINE land cover and Copernicus data Will be the main data processing partner JRC Operates data centres on forest and soil and information systems on agriculture, ecosystems and water Vast modelling experience on ecosystem services RTD Runs research programs on ecosystem services and biodiversity, e.g. the recently launched ESMERALDA Will ensure coordination between INCA and research activities

Timing Two phases: Phase 1 further broken down into Phase 1: Feasibility and design phase (mid 2015 – mid 2016) Phase 2: Implementation phase (2016 – 2020) Phase 1 further broken down into A: Review and design (June 2015 – Dec 2015) B: Initial planning and stakeholder engagement (Oct 2015 – Mar 2016) C: Prepare project implementation (Jan 2016 – April 2016)

Tasks of Phase 1 Data System design Review existing and planned EU wide data collections Test the integration of these data sources Propose changes to existing data collections and models Define minimum data quality standards (e.g. scale and scope) System design Test modelling approaches Understanding the uncertainties incl. error propagation, reducing complexity Design a prototype system of (physical) ecosystem accounts in line with UN standards Make a plan for an integrated accounting system, to be presented to the EKC for approval for the implementation phase from 2016 until 2020 Secure the necessary resources from all stakeholders

Where are we now? External expertise through consultant (Wageningen University) First set of deliverables on policy relevance and data sources in draft Workshop in EEA to take stock, discuss already available accounts and how they can be fitted together Member States workshop is planned for December 2015 (at the MAES delivery workshop)

What do we want to achieve by the end of phase 1? A blueprint for the future INCA including its limits A dialogue with Member States, researchers, policy makers, other users … (MAES delivery workshop in December 2015) A reliable estimate of the necessary resources A implementation plan until 2020 A plan for improving the data sources