1 1 Challenges in establishing Sustainable Development Indicators Julie L. Hass, Ph.D. Division for Environment Statistics, Statistics Norway Joint UNECE/OECD/Eurostat Working Group on Statistics for Sustainable Development Second meeting, Oslo, November 2006

2 Indicators – used to measure some phenomenon What do we want to measure? How do we measure it? Need to know what before we know how! What is sustainable development? Need to answer this question before we can determine how to measure it! Two main ways this has been answered: Models and policy statements

3 Policy-based approach Where do we find definitions of SD? Answer: In policy and strategy statements made by politicians Examples: Eurostat UK Sweden

4 Model-based approaches Where do we find definitions of SD? Answer: Definition of "Sustainable Development" from a model Model determines what should be measured Indicators chosen based on the definition of the model Examples: 4 pillar (UNCSD) –social, environmental,economic and institutional Belgium (Transgovern) Switzerland Capital

5 Evaluation of Policy Approach Advantages High level of correspondence between the indicators and policy Indicators can be created for multinational or geographic regions for which there is a policy document (political cooperation) No major discussions regarding definitions, although some questions can arise due to interpretation of political documents May be easier to change the definition and the corresponding indicators when our understanding about sustainability evolves Disadvantages Political statements may not provide a comprehensive or theoretically robust definition Political statements and policies can and most likely will change over time. Problems can arise when trying to track long-term trends since establishing the data required for the indicators can be costly and take time to establish Risk that SD could substantially disappear from political agenda Short term since political timeframe is rarely beyond the next election

6 Evaluation of Capital (Model) Approach Advantages Capital has an inherent long term perspective Interlinkages between types of capital are an inherent part of the calculation of the national wealth indicator (at least in the World Bank and the Norwegian approaches calculation of wealth is included) National wealth measures allow for international comparability Disadvantages If a strong sustainability perspective is adopted, the issue of critical levels of capital and non-substitution needs to be dealt with. There is a risk that the indicator set will be less politically relevant and will not be used in connection with implementing policies regarding sustainable development Sum of national wealth over all nations does not necessarily result in a sustainable world or globe Calculation methodology of national wealth is not standardized and is controversial

7 Variations on the "Capital Approach" World Bank National Wealth indicator of sustainability, whereas sets of indicators are merely providing information regarding conditions for sustainability Canada NO National Wealth indicator Condition of critical eco-systems Norwegian National Wealth + strong sustainability perspective (include indicators for critical resources; natural, human and ecological)

8 Definition of sustainable development What are the differences between the policy and capital approaches? Irreconcilable differences? 4 irreconcilable, inherently embedded dimensions in the concept of sustainable development (from D.Hessen) –biocentric vs. anthropocentric –local/national vs. global (scale) –hedonism vs. asceticism ("wants" vs. human needs) –now vs. future (time dimension)

9 biocentric vs. anthropocentric

10 local/national vs. global (scale)

11 hedonism vs. asceticism ("wants" vs. human needs)

12 now vs. future (time dimension)

13 Sustainable development statistics Working group for SD statistics and NOT only SD indicators What statistical systems do SD indicators require? –Consistent –Coordinated (facilitate modelling) –Established time series (long) –Improved methodologies –Improved national wealth calculation methodologies –Expand the boundaries of the SNA  SEEA  Social aspects (OECD) – + + +

14 National Accounts Environmental Economic Accounts Socio-economic Accounts 1 Productivity of energy and raw materials 2 Emissions of greenhouse gases 3 The proportion of renewable energy sources in overall energy consumption 4 Increase in land use for housing and transport 5 Development of stocks of specified animal species 6 Balance of public sector financing 7 Private- and public-sector expenditure on research and development 8 Capital-outlay ratio 9 Educational outcomes for 25-year-olds and number of new students 10 Gross domestic product 11 Transport intensity and share of the railways in providing transport 12 Proportion of ecological agriculture and general statement on nitrogen surplus 13 Air pollution 14 Satisfaction with health 15 Number of burglaries 16 Labour force participation rate 17 Full time children care facilities 18 Relationship between male and female gross annual earnings 19 Number of foreign school-leavers who have not completed secondary school 20 Expenditure on development collaboration 21 EU imports from developing countries Integration of the German sustainability indicators into the accounting data set