Using biodiversity information to inform policy-making: Advancing biodiversity accounting Claire Brown Will cover Brief overview of UNEP-WCMC and what we do Our work in natural capital accounting – past and present

UN System of Environmental-Economic Accounting Experimental Ecosystem Accounting (SEEA-EEA) The SEEA has emerged as a leading tool in the support of policy and analysis of the environment and its relation with economic and human activities. Its particular strength is its capacity to integrate environmental information into standard measures of economic activity. It can therefore facilitate the mainstreaming of environmental information in economic development and planning discussions and serve to recognise the connections between environmental policy objectives and broader societal outcomes. In response to demands for integrated information on environmental sustainability, human well being and economic growth and development the UN Statistics Division is developing the System of Environmental-Economic Accounting Experimental Ecosystem Accounting (SEEA-EEA) framework. In 2013 the United Nations Statistical Commission (UNSC) endorsed SEEA 2012 Experimental Ecosystem Accounting. This was followed by a project to test and advance SEEA EEA. It was led by the United Nations Statistics Division (UNSD) in collaboration with UNEP through its TEEB Office and the Secretariat of the CBD. UNEP-WCMC was asked to contribute to the advancement of biodiversity accounts, which is a highly novel field of accounting even within the experimental field of ecosystem accounting. In the SEEA-EEA framework: Biodiversity is one of the thematic accounts that provides information on ecosystem condition. Ecosystems are delineated. This information is captured in the extent account. Advancing Biodiversity Accounting

Why create Biodiversity Accounts? Thinking about biodiversity as natural capital stock helps to understand whether our natural capital is being sustainably used. Enables a practical starting point for conditions accounts Allows for having a separate account that has a relationship with other accounts Allows for an account that can lead to an economic value account of an ecosystem type Supports sustainable development and transition to a Green Economy by: Organizing biodiversity information in a format consistent with other statistical frameworks. Enabling statistics on biodiversity and ecosystems to be compared with economic and social statistics. They can reveal: Which ecosystems are in the best biodiversity condition and which are the most degraded? What changes have occurred over time and what could be the impact on ecosystem service delivery? Indicators can communicate changes in ‘stocks’ of biodiversity. Biodiversity Accounting, through the SEEA-EEA framework, allows trends in biodiversity (and the benefits it provides) to be compared with economic and social activity in a spatially explicit manner to understand trade-offs and synergies and inform policy questions. Internationally, the CBD’s Strategic Plan for Biodiversity (2011-2020) sets a vision for fully valuing and integrating biodiversity into national decision making and taking concrete actions to reverse biodiversity loss during the next decade. i.e. Aichi Biodiversity Target 2. Biodiversity accounting provides a framework to accomplish this. Understanding trends and impacts in biodiversity and the benefits it provides can support more sustainable decision making. Advancing Biodiversity Accounting

What do Biodiversity Accounts contain? Biodiversity information linked to areas of ecosystems (from Extent Account). Spatially explicit information on key species: Abundance Richness Conservation status Other characteristics (e.g., health) The Extent Account captures some information on ecosystem diversity. Therefore it can be considered as a the basis of an initial account of biodiversity. The biodiversity account captures information on key aspects of species diversity, such as abundance, richness, information on their conservation status. Summary statistics are generated from the information contained in the biodiversity account to generate an index that provides an indicator of overall biodiversity and information on the condition of an ecosystem. Measures of biodiversity: Ecosystem diversity (Mainly Extent Account): Heterogeneity of ecosystems found in an area (e.g., number and extent of ecosystem types within a landscape) Species diversity (Biodiversity Account): Species richness: number of species within a given sample, area or community Species abundance: total number of individuals of a species in an area, community or population The dissimilarity between richness and abundance between areas Other useful measures Species characteristics: e.g. if specialist or generalist, health of biodiversity (e.g., disease prevalence) Conservation status: extinction risk, a combination of distribution, population trends and threats (*use IUCN’s Red List methodology) Spatially detailed summary statistics (index) on species diversity (used in Condition Account). © Anna Jurkovska/Shutterstock Advancing Biodiversity Accounting

What do Biodiversity Accounts look like? Priority species and ecosystems Index Species 1 Species 2 Species 3 Species ... Pop. Ecosys. Area Reference Opening Closing Net change Maps Tables Ecosystems Species 3 Species 2 Species data: - abundance - richness - classification - conservation status - characteristics - health Biodiversity Accounts provide information on the stock of species and the diversity of species in ecosystems. Spatial accounts can monitor trends in this important aspect of natural capital and highlight where ecosystems services are at risk or delivery could be improved. A Biodiversity Account is useful to bring together data on species and ecosystems from many sources…This is only one possible example. In this example, a “reference condition” is selected and the opening and closing values are based on changes from that reference condition. The index provides the summary information on biodiversity to inform the condition account and, therefore, the capacity of an ecosystem to deliver services to support well-being. The SEEA EEA describes a reference condition as one of minimal human disturbance. However, in some contexts this may be difficult to define and instead the reference condition could comprise species measures at the beginning of the first accounting period or a level representative of ecological sustainability (as per the Norwegian Nature Index). Species 1 Advancing Biodiversity Accounting

A proposed tiered approach of data needs for Biodiversity Accounts Examples of information recorded for a Montane Coniferous Forest Ecosystem Unit (EU) Tier 1: Montane Coniferous Forest EU extent, weighted by an input condition indicator (e.g., deadwood). Tier 2: Species richness of Montane Coniferous Forest EU. Supplemented with information on species Red List status. Tier 3: Species abundance monitoring data for Montane Coniferous Forest EU. Increasing information requirements Tier 1 Ecosystem extent, potentially weighted by species indicators Tier 2 Species richness data, extinction risk and / or health data We proposed a tiered approach depending on data availability so that regardless of their situation countries could have an entry point. This pyramid illustrates the levels of detail considered in the different biodiversity accounting contexts. The information collected becomes more detailed and requires more resources to compile towards the base. ‘Tier 1’ biodiversity accounting provides a framework for organising information on ecosystem diversity, potentially weighted using measures (or indicators) of species diversity. This may limit resources. This approach is conceptually similar to the NNI just described. ‘Tier 2’ species diversity accounts can be produced by collecting data on species richness or ranges and other characteristics, such as threat status. However, these provide limited information on the actual ‘stock’ of biodiversity. ‘Tier 3’ species diversity accounts can be produced by collecting information on species abundance. This provides the most detailed accounts but requires the most resources. Further testing is required in order to generate these types of accounts in real world situations given the difficulties in obtaining population measures. Tier 3 Species abundance data Advancing Biodiversity Accounting

‘Tier 1’ approach - using indicator weighted habitat area Example based on Norwegian Nature Index approach Habitat Area Bird Population (x) Species Richness (y) Butterfly population (z) Headline Indicator (HI) Stock Indicator Weight 0.25 0.50 HI = 0.25x + 0.50y + 0.25z) Stock = HI * Area Open (2000) 5.0 0.90 0.80 0.70 4.0 Additions 1.0 0.00 0.10 0.15 0.0875 0.525 Reductions 0.0 0.05 0.0625 0.375 Close (2010) 6.0 0.85 0.825 4.95 Net Change +1.0 -0.10 +0.05 +0.10 +0.025 +0.95 Reference N/A Level in 1970 Example 1 A biodiversity account using the Norwegian Nature Index approach using imaginary data. This accounting table presents data on changes in habitat areas and input indicator values between 2000 and 2010. As shown by the rows associated with the blue circles. To populate this table information has been obtained on 3 input indicators of species diversity are selected for the ecosystem unit being considered. These are identified by red circles. The table takes the form of a traditional asset account, with rows for additions and reductions in stocks provided. This information is recorded in the rows identified by green circles. The input indicators are weighted according to their relative importance (i.e., 0.25, 0.50 and 0.25) to generate a headline output indicator – identified by the purple circle Appropriate weights for the different indicators should be developed in consultation with ecological experts. The stock of biodiversity recorded in the final column captures a weighted measure of the extent of the ecosystem, where the headline indicator provides the weighting measure – identified by the black circle. Advancing Biodiversity Accounting

‘Tier 2’ approach - based on species richness and status Example from an Australian terrestrial area for year 2000 (Bond et al., 2011) Example 2 This experimental accounting example provides a species account for the Burdekin Natural Resource Management area, Queensland, Australia for the year 2000. This account is based on species richness measures for different species groups – identified with red circles. The account is supported with information on the species threat status as well – identified by the blue circles - use the International Union for Conservation of Nature (IUCN) threat categories. The table just presents the opening stocks of species. If data exists for two time periods it would be possible to establish a trend line Advancing Biodiversity Accounting

Biodiversity accounting – challenges and barriers Which aspects of biodiversity to capture. Which species to prioritise. Where to obtain biodiversity information. Appropriate modelling approaches. Developing biodiversity indicators for ecosystem condition / services. Scale issues for biodiversity accounting. Aggregation from local to national scale. Lack of case studies. The main ones comprise: Aspects of biodiversity – should the focus be on species richness, abundance or some other measures. Which species to prioritise – it is impossible to account for all, should the focus be on economically important (game species), deliver ecosystem services (pollinators), threatened species, culturally important species etc.. Where to obtain biodiversity information – resources are unlikely to be available for extensive monitoring programmes in the first instance, how do we make best use of existing information? Look at existing reporting commitments. Appropriate modelling approaches – the spatial explicit nature is data intensive. Modelling will be requires to estimate biodiversity stocks in areas with no existing data, which approach is best in which circumstance? Developing biodiversity indicators for ecosystem condition / services. Indicators are required to communicate biodiversity trends and the implications for economic and human activities to wider audiences. How should these be developed? Scale issues for biodiversity accounting. Scale is a particularly complex issue for biodiversity accounting, at the small-scale (EU – ecosystem unit) we are interested in the quantity of biodiversity, at larger scales (e.g., EAU – ecosystem accounting unit) we are also interested in spatial variation of biodiversity. Aggregation from local to national scale. Because of the scale issues aggregation of biodiversity data to the national scale is complex, especially when accounting for biodiversity between ecosystems. A lack of case studies means there is limited opportunity to learn from the experiences of others or to demonstrate the benefits of biodiversity accounting We included case studies from Peru and Australia were biodiversity (species accounts) are being experimented with. Details are in our ANCA doc. Advancing Biodiversity Accounting

Advancing biodiversity accounting Compiled state of the knowledge on experimental biodiversity accounting. Aimed at practitioners who wish to collect and organise data to understand the status and trends of ecosystem and species diversity… …. and incorporate this data into the wider SEEA-EEA framework for national accounting. In 2015 UNEP-WCMC produced a technical document on experimental Biodiversity Accounting. Our document was part of a series of technical notes, developed as an input to the ‘SEEA Experimental Ecosystem Accounting Technical Guidance, the latter of which is currently undergoing consultation. Additional output – training material on biodiversity accounting that UNSD could use in their capacity building workshops on implementing the SEEA-EEA in their pilot countries (Bhutan, Chile, Indonesia, Mauritius, Mexico, South Africa, and Vietnam). Our document is on UNEP-WCMC website Advancing Biodiversity Accounting

What next? Writing workshop in February 2016 - discussion around some of the fundamentals underpinning Biodiversity Accounting Produce a practical ‘step-by-step’ guidance for constructing national accounts of biodiversity including refinement of the tables Guidance then needs to be tested and refined further We only had 3 months for our ANCA doc so little time for thinking and for wide peer review. Key conclusion was – although we propose an approach for biodiversity accounting it needs testing, refining and validating in different contexts, scales and different degrees of data availability. Our current project seeks to work towards addressing this point. 4 month project to build on our ANCA doc. Called “Improving how Biodiversity is captured in Natural Capital Accounting to support planning for Sustainable Development”. We continue to engage with UNSD to ensure our approach is compatible with SEEA-EEA We are organising a workshop in Feb in Cambridge – Ken Bagstad is attending from WAVES team - the workshop aims to build consensus around a broad methodological approach to biodiversity accounting that will facilitate construction of national scale accounts of biodiversity The workshop will culminate in a short guide outlining the approach step by step. Advancing Biodiversity Accounting

Linking species information Economy Ecosys 1 Ecosys 2 Ecosys etc Species 1 Species 2 Species etc Service 1 Service 2 Service etc Who is the economic agent responsible for an ecosystem? Clear link – ecosystem deliver ecosystem services Clear link to the economy Clear link but spatial unit needs to be considered. Species can then be linked to the extent and condition of ecosystems Some species may link to specific services Ecosystem Asset Accounts (Extent & Condition) Species Accounts Ecosystem Service Accounts Advancing Biodiversity Accounting

Step by Step Guide for Biodiversity Accounting Planning Step 1 - Define key analytical uses/policy questions for biodiversity accounting information to answer Step 2a - Select species and scope existing and potential and/or proxy biodiversity data as well as supporting data related to biodiversity accounting Step 2b - Decide if you ned a map of ecosystem types (ideally taken from ecosystem accounts Step 3 - Decide the set (type) of species accounts (structure of tables), the methods to be used and reference condition Step 4 - Select the reporting unit and aggregation and procedure Advancing Biodiversity Accounting

Step by Step Guide for Biodiversity Accounting Implementation Step 5 - Collect data Step 6 - Populate biodiversity accounting tables Step 7 - Identify and fill gaps in the species accounting tables Step 8 - Analyse and interpret and explore ways to present the results Step 9 - Aggregate species information to appropriate scales Step 10 - Integrate biodiversity accounting into the overall accounting system *** Disseminate & Use Review and Refinement Stakeholder engagement Advancing Biodiversity Accounting February 2016

Example figure Advancing Biodiversity Accounting

At one point of time (e.g. 2000) Geographical Aggregation Example tables At one point of time (e.g. 2000) Spatial units Ecosystem characteristics Vegetation Water Resources Soil Carbon Soil Regulation Other characteristics Biodiversity Composite indicator/index for ecosystem condition (Assume there is an appropriate aggregation method)   Species for conservation Species for functions Species for services Biodiversity composite indicator/index (Assume there is an appropriate aggregation method) Headline indicator 1 - e.g. species abundance indicator Headline indicator 2 - e.g. Biodiversity retained Headline indicator 3 Ecosystem type EU01 EU02 EU03 EU04 EU05 EU06 EU07 EU08 EU09 EU10 EU11 EU12 EU13 EU14 EU15 Geographical Aggregation Advancing Biodiversity Accounting