1 Indicators and SEEAW Training Course on Water Accounting Amman, Jordan March 2008 Michael Vardon United Nations Statistics Division

2 Outline Audience for indicators Relationship of environment to economy Pressure-State-Response (Driving forces) Key questions Indicators Characteristics SEEAW indicators SEEAW supplementary tables and information Communication and analysis

3 Audiences for information Indicators Micro data Accounting SNA, SEEA, SEEAW Public Politicians Policy Makers Strategic planners Researchers Indicators are part of communicating information

4 Need to communicate complex information about the relationships between the environment and the economy Environment provides Economic resources to production process (e.g. minerals, timber, water, energy) Non-economic resources to production process as well as other uses for mankind Environment receives wastes from the economy

5 A model of the relationships between the environment and economy: Pressure – State – Response

6 Concerns over the level impact the economy is having on environment Depletion of natural resource (e.g. oil, forests, biodiversity)Depletion of natural resource (e.g. oil, forests, biodiversity) Degradation of natural resources (e.g. air and water pollution)Degradation of natural resources (e.g. air and water pollution) Potentially catastrophic effects (e.g. climate change)Potentially catastrophic effects (e.g. climate change)

7 Questions Are environmental endowments being used responsibly. Is their use posing a treat to economic development now? Will their unchanged use into the future pose future threats? Who benefits from use, who bares the cost of use? What indicators can help answer the questions, simply and accurately?

8 Indicators need data Much of the information needed to address these questions can be drawn from the standard SEEAW tablesMuch of the information needed to address these questions can be drawn from the standard SEEAW tables To answer some questions additional information is needed. In some cases the standard tables can be expanded to include more detailed industry breakdowns or a lower level of geographic reference (e.g. province instead of state)To answer some questions additional information is needed. In some cases the standard tables can be expanded to include more detailed industry breakdowns or a lower level of geographic reference (e.g. province instead of state) Some of these data can be drawn from the supplementary SEEAW tablesSome of these data can be drawn from the supplementary SEEAW tables

9 Supplementary tables SEEAW identified 12 supplementary tablesSEEAW identified 12 supplementary tables Most are expansions of the standard tables or re-presentations of some of the data in the standard tables (e.g. the matrix of flows within the economy)Most are expansions of the standard tables or re-presentations of some of the data in the standard tables (e.g. the matrix of flows within the economy) Two new tables are addedTwo new tables are added Water quality accountsWater quality accounts Social indicators – Access to water and sanitation (the MDG indicators)Social indicators – Access to water and sanitation (the MDG indicators)

10 Further information The international recommendations for water statistics currently being drafted by the UN will include other data items, not included in the water accountsThe international recommendations for water statistics currently being drafted by the UN will include other data items, not included in the water accounts The additional data items will support indicators as well as help in the production of the water accounts and the analysis of data in the water accountsThe additional data items will support indicators as well as help in the production of the water accounts and the analysis of data in the water accounts

11 Characteristics of indicators Focus on outcomes Focus on outcomes Have an unambiguous 'good' direction Have an unambiguous 'good' direction Be supported by timely data of good quality Be supported by timely data of good quality Be available as a time series Be available as a time series Be sensitive to changes Be sensitive to changes Be summary in nature; Be summary in nature; Be capable of disaggregation Be capable of disaggregation Be interpreted easily by the general reader. Be interpreted easily by the general reader. Adapted from Measures of Australia’s Progress 2002

12 Millennium Development Goals Official list of MDG indicators after the 2007 revision Proportion of total water resources used 7.7 Proportion of population using an improved drinking water source (formally target 30) 7.8 Proportion of population using an improved sanitation facility (formally target 31) Goal 7: Ensure environmental sustainability NEW INDICATOR

13 MDG: Target 30 – access to improved drinking water

14 MDG: Target 31 – access to improved sanitation

15 Challenges to monitoring and achieving MDG 7 ‘Countries face many difficulties in monitoring the MDG 7 indicators, as well as in the overall goal of making progress on environmental sustainability.” “Insufficient availability of data and disaggregated data, lack of baseline data to act as references, and uncoordinated data collection inhibit the monitoring of targets set.” Source: Making Progress on Environmental Sustainability,

16 MDG 7:Steps for improvement “While the MDG framework is best managed as a group of interrelated targets, MDG 7 warrants particular attention given the weaknesses both in monitoring and in overall progress. This report presents specific steps to be used in tailoring targets and indicators for MDG 7. The steps can be followed in the order offered here or in a different sequence: 1) assess country environmental issues; 2) identify existing priorities; 3) use analytical frameworks to determine additional critical parameters; 4) set country-specific and verifiable targets; 5) select indicators and establish a baseline to track progress; 6) implement monitoring and data gathering systems; 7) analyse and interpret results; and 8) communicate the results to policy makers and the public. Source: Making Progress on Environmental Sustainability

17 So for MDG (and other reporting frameworks) we need….. An analytical framework for understanding the relations between the environment and the economyAn analytical framework for understanding the relations between the environment and the economy Indicators of these relationshipsIndicators of these relationships Monitoring and data systems to support the framework and indicatorsMonitoring and data systems to support the framework and indicators To be able analyse and interpret results and communicate results to policy makers and the publicTo be able analyse and interpret results and communicate results to policy makers and the public Environmental and economic accounting provides this!

18 SEEAW and Indicators The SEEAW standard tables and commonly collected statistics on the population and economy can be combined to produce a wide range of water indicatorsThe SEEAW standard tables and commonly collected statistics on the population and economy can be combined to produce a wide range of water indicators Population size and national accounts are two of the most commonly uses sources of other dataPopulation size and national accounts are two of the most commonly uses sources of other data

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20 Indicators: economic growth and water pollution Netherlands: water pollution and economic growth,

21 Indicators: economic growth and water use Botswana: water use and economic Growth,

22 Environmental Economic Profiles Sweden 1995

23 International transport of pollution Share of pollution in rivers in the Netherlands originating abroad

24 The SEEAW Indicators (pages ) SEEAW provides an annex on indicators Water availability Water intensity and productivity Opportunities to increase water supply Cost and price of water supply and wastewater treatment services

25 Additional UNSD Guidance on compiling indicators As part of the development of the International Recommendations of Water Statistics, UNSD will prepare guidance on the construction of policy relevant indicatorsAs part of the development of the International Recommendations of Water Statistics, UNSD will prepare guidance on the construction of policy relevant indicators A draft should be available mid-2008A draft should be available mid-2008

26 Indicators of water availability Per capita renewable resourcesPer capita renewable resources Ratio between Total renewable water resources and population size. (WWDR 2003, Margat 1996)Ratio between Total renewable water resources and population size. (WWDR 2003, Margat 1996) Annual Withdrawals of Ground and Surface Water as a Percent of Total Renewable Water/Exploitation indexAnnual Withdrawals of Ground and Surface Water as a Percent of Total Renewable Water/Exploitation index The total annual volume of ground and surface water abstracted for water uses as a percentage of the total annually renewable volume of freshwater. (UN, 2001)The total annual volume of ground and surface water abstracted for water uses as a percentage of the total annually renewable volume of freshwater. (UN, 2001) Consumption IndexConsumption Index Ratio between Water Consumption and Total Renewable Resources. (Margat, 1996)Ratio between Water Consumption and Total Renewable Resources. (Margat, 1996)

27 Per capita renewable resources from SEEAW SEEAW Asset account Total renewable water resources 2. Returns + 3. Precipitation + 4. Inflows – 6. Evaporation – 7. Outflows ________________ Population ________________ = Population

28 Annual Withdrawals of Ground and Surface Water as a Percent of Total Renewable from SEEAW SEEAW Asset account 2. Returns + 3. Precipitation + 4. Inflows – 6. Evaporation – 7. Outflows ________________ Total renewable water resources Withdrawals of ground and surface water ________________ = SEEAW Physical Use Table 1.i.1 Abstraction from surface water + 1.i.2 Abstraction from ground water

29 Consumption Index from SEEAW SEEAW Asset account 2. Returns + 3. Precipitation + 4. Inflows – 6. Evaporation – 7. Outflows ________________ Total renewable water resources Water consumption ________________ = SEEAW Physical Supply Table 7. Consumption

30 Indicators for water intensity and productivity from SEEAW

31 Indicators for opportunities to increase water supply from SEEA

32 Indicators for cost and price of water supply and wastewater treatment

33 Indicators of access to and affordability of water and sanitation services E.g. from household expenditure surveys

34 Links between the World Water Development Report Indicators and SEEAW World Water Assessment Programme 2006World Water Assessment Programme of 38 Indicators can be directly derived from the water accounts21 of 38 Indicators can be directly derived from the water accounts An 5 indicators can be partially derivedAn 5 indicators can be partially derived 12 cannot be derived but can be included as supplementary information. Of these12 cannot be derived but can be included as supplementary information. Of these 4 are social indicators (e.g. urban and rural population)4 are social indicators (e.g. urban and rural population) 3 are related to land areas and could be derived from land accounts3 are related to land areas and could be derived from land accounts 3 are related to energy and could be derived from energy accounts3 are related to energy and could be derived from energy accounts Remaining 2 relate to ISO certificationRemaining 2 relate to ISO certification

35 Data, accounts, indicators and analysis Indicators Micro data Accounting SNA, SEEA, SEEAW All of these level are needed to have a complete information system Because policy makers are not yet familiar with environment accounts, you may find it useful to conduct your own analysis of the accounts or to encourage others to do an analysis

36 Valuation and indicators Valuation is the most contentious part of environmental accountingValuation is the most contentious part of environmental accounting The hybrid accounts are the starting point for valuationThe hybrid accounts are the starting point for valuation Compile these using standard SNA techniquesCompile these using standard SNA techniques Some other approaches are described in Part II of SEEAWSome other approaches are described in Part II of SEEAW When presenting data and indicators that rely on valuation you must provide some guidance on interpretationWhen presenting data and indicators that rely on valuation you must provide some guidance on interpretation Approach issues of valuation cautiously

37 Summary Indicators are important communication tools. They summarise complex informationIndicators are important communication tools. They summarise complex information Indicators are only as good as the data and accounts that underpin themIndicators are only as good as the data and accounts that underpin them Indicators need to be interpreted and analysed in the context of other dataIndicators need to be interpreted and analysed in the context of other data Indicators need to built on solid foundation of dataIndicators need to built on solid foundation of data

38 Audiences for information Indicators Micro data Accounting SNA, SEEA, SEEAW Public Politicians Policy Makers Strategic planners Researchers Indicators are part of communicating information

39 Contact details Michael Vardon Adviser on Environmental-Economic Accounting United Nations Statistics Division New York USA Room DC Phone: Fax: