EEA proposals for developing EU ecosystem (capital) accounts Jan-Erik Petersen 1 October 2015

Starting point I: EU roadmap for NCA Building on SEEA achieve step-wise implementation of : : Bio-physical ecosystem asset accounts (at EU level and in MS) : Accounting for ecosystem services (at EU level and in MS) :Valuation of ecosystems and their services (at EU level and in MS) Focus of WS

Starting point II: the current framework of EEA SECA 3 Marine fish stocks Biomass carbon Land cover/use Biodiversity /landscape structure Water quantity (SEEA water) Water quality LEAC reference grid Geo-spatialisation of statistical data Ecosystem reporting and analysis units Water basins Geo-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 criteria c)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 signal  Follow 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’)

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 nutrient balance Biodiversity/ Landscape (ENCA) Marine (Fish stocks) Year X100 Year X Year X Accounting result/index 97%96%104%Inverse of 10393%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 X100 Year X Year X Accounting result/index 97 %96%104%10393%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