How the SEEA Contributes to Environmental Sustainability Policies Mark de Haan

How the SEEA Contributes to Environmental Sustainability Policies 1 Content paper – SEEA and Sustainability Policies Current revision process SEEA’s main building blocks New SEEA compared to previous versions and SNA Linkage to policy indicators

How the SEEA Contributes to Environmental Sustainability Policies 2 Revision Governance UNCEEA Advisory Groups (London Group, Oslo Group, others) Editor & Editoral Board International consultation process (volume 1) → Outcome papers (end 2010) → SEEA chapters (end 2011) → Endorsement UNSC (early 2012)

How the SEEA Contributes to Environmental Sustainability Policies 3 Goals SEEA (System of Environmental and Economic Accounts) revision Elevating the 2003 SEEA to international statistical standard (like SNA) Clear cut recommendations No multiple options Streamlining No country examples

How the SEEA Contributes to Environmental Sustainability Policies 4 SEEA – Main building blocks Volume 1 (standardized accounts) ▫ physical flows ▫ environmentally related activities and transactions ▫ natural resources and depletion adjusted accounts Volume 2 ▫ ecosystems ▫ valuation of degradation Volume 3 ▫ applications and policy uses

How the SEEA Contributes to Environmental Sustainability Policies 5 Vol 1 - Physical flow accounts Supply-use (materials, water, energy) Resource inputs, products, residuals (waste) Resident principle (versus territory) ISIC Link to MFA Hybrid accounting → resource productivity, link to economic growth

How the SEEA Contributes to Environmental Sustainability Policies 6 Vol 1 - Accounts for environmentally related activities and transactions Provide in more detail parts of the NA that are relevant from an environmental perspective Two policy perspectives: Internalisation of costs (EPEA, taxes, subsidies) Showing the size of the environmental industry (EGSS)

How the SEEA Contributes to Environmental Sustainability Policies 7 Asset accounts Systematic recording of changes in assets Vol 1: SNA asset boundary (natural resources) Vol 2: goes beyond SNA (ecosystems) Depletion, degradation Two policy perspectives: Strong sustainability: maintaining crucial resources base at least at current levels Weak sustainability: maintaining capital in general (in money terms) Depletion adjusted SNA current accounts

How the SEEA Contributes to Environmental Sustainability Policies 8 SEEA 1993, 2003, 2012 SEEA 1993 → sequence of extensions (split up of transactions, physical flows, imputations of money flows etc.) with emphasis on income adjustments SEEA 2003 → loose modular approach with emphasis on physical accounts Revised SEEA → SEEA 2003 with strengthened accounting structure and clear cut recommendations

How the SEEA Contributes to Environmental Sustainability Policies 9 Revised SEEA (Vol1) versus SNA 2008 Main differences: Physical dimension of production and consumption Asset boundary (Vol 2) Natural resource depletion Production boundary (in Vol 1 a small item) Functional classifications (CEPA, CRUMA, taxes, subsidies)

How the SEEA Contributes to Environmental Sustainability Policies 10 SEEA and policy indicators (vol 3 discussion) Impressive system but what does it tell you? SEEA potentially delivers indicators relevant for sustainability policies Link between indicators and accounts must be strengthened: Environmental-economic performance → Decoupling (resource productivity) → Footprint indicators (consumer behaviour) Adjusted measures of income, saving and extended measures of wealth Other (EPA, EGGS)

How the SEEA Contributes to Environmental Sustainability Policies 11 Current status and future work Vol 1 issues are currently undergoing international consultation process (London Group meets next week in Santiago) Vol 1 is expected to be finalised by 2012 Volumes 2 and 3 follow at later stage (2013) Beyond the SEEA revision Regional dimension Linkage to social issues