Key Concepts (Level 0) SEEA Experimental Ecosystem Accounting

Key Concepts (Level 0) SEEA Experimental Ecosystem Accounting
Thanks for inviting me and for coming today! […who am I? what is my role?] The project is a collaboration of the United National Statistics Division, United Nations Environment Programme, the Secretariat of the Convention on Biological Diversity It is funded by the Norwegian Ministry of Foreign Affairs. I’m sure that some of you are more familiar with some of these topics than I am. However, for others, this will be a new topic. The objective is to being everyone to the same level of understanding. Feel free to ask questions for clarification (or to let me know if you’re getting confused), it’s a complex topic.

Overview SEEA-EEA Training (Level 0) Overview of training modules
Basic concepts: Ecosystems as “Assets” Ecosystem Services Cascade Accounting Principles Ecosystem Accounting is Spatial Accounts Tools This is a 90-minute rapid overview of the basic concepts and all SEEA-EEA Accounts and tools. This will prepare you for Level 1 training on specific accounts SEEA-EEA: Key Concepts

SEEA-EEA Training Concepts, Accounts and Tools
Flexible and modular (don’t need all Accounts and Tools) Three levels: Level 0 (All participants) Level 1 (Compiling) Level 2 (Providing data, country examples) Links to related training materials: Secretariat for the Convention on Biological Diversity (SCBD) Quick Start Package (QSP): includes GIS exercises World Bank WAVES This is an introduction (Level 0) to an extensive training programme on the SEEA-EEA… SEEA-EEA: Key Concepts

SEEA-EEA Training Level 0
Learning objectives Understand the basic concepts in ecosystem accounting Understand the structure, data requirements and uses of the SEEA-EEA accounts Understand the basic tools used to compile the SEEA-EEA accounts For technical and scientific experts, this is: Preparation for Levels 1 & 2 For policy experts and supporters you will: Understand how to use the accounts and who to engage in the discussion Please ask questions and comment during the presentation (as long as you keep it high level = clarification, correction) SEEA-EEA: Key Concepts

SEEA-EEA Training Level 0
Basic concepts and definitions Ecosystems as “Assets” The Ecosystem Services “Cascade” Ecosystem structure and processes, function, services, benefits and values Accounting (not just “counting”) Principles Assets, stocks and flows Balancing the books Ecosystem Accounting is Spatial Geographic information systems (GIS) I’ll first introduce some basic concepts and definitions that are important for ecosystem accounting… SEEA-EEA: Key Concepts

Ecosystem assets, a definition
Ecosystem assets are spatial areas containing a combination of biotic and abiotic components and other characteristics that function together (SEEA-EEA Sections 2.31, 4.1) A forest is an area that: Can be located on a map (spatial) Contains trees, shrubs, grasses, soil biota, birds, mammals, insects… functioning together with The soil, water, geology (rocks), sunlight, wind… We consider ecosystems as “assets” because they support not only economic production, but also our well-being, health and security… SEEA-EEA: Key Concepts

The Ecosystem Services Cascade
People depend on ecosystems for food, clean water, flood protection and much more. We generally think of ecosystems as separate from their services and the value we place on them. It’s nice to have a forest near our home and to enjoy the wildlife. However, the forest is important also for flood protection, water purification, wild food, pollution regulation, carbon sequestration, wind regulation, etc. The Ecosystem Services Cascade makes this explicit… Biophysical structures (e.g., forests and wetlands), composition and processes (e.g., photosynthesis and competition) Support ecosystem function (growth of biomass, , which generate Ecosystem Services. Services, when used (and we apply capital and labour) generate benefits, which can be valued The use of these services for generating benefits, in turn, put pressures on the Biophysical Structures and Processes (e.g., by degradation or conversion). The components of the cascade are also often studied individually…For example, ecologists focus on processes and functions. Ecological economists will use the ecological information to study the services we get from ecosystems. Economists and sociologists are more interested in the benefits and values we assign to the services. The cascade model is a point where these sciences can converge. The ecosystem services cascade also helps us break up what we measure and work with experts in different areas of science and policy. Source: Nottingham School of Geography Ecosystem services are the contribution of ecosystems to a benefit for people… SEEA-EEA: Key Concepts

Accounting principles…
Apply to environmental data, too… Double entry accounting: Beginning & end of time period  reconcile changes Compare two sources  reconcile and find errors Time of recording: Referring to same time period (accounting period) Unit of measurement: Same units (physical or monetary) Reconciliation and aggregation Consistent valuation rules: Market price: Basic, producer, purchaser Consistent concepts and classifications Stock  Flow (Asset  Service) One aspect of environmental-economic accounting is adhering to accounting principles like in the SNA and SEEA-CF. These help put rules on what we measure and how we measure it. These are also useful to ensure that people working on different parts can collaborate. It’s important to use the same concepts, time periods, classifications and units. 1. Double-entry accounting is actually tracking number of units sold and value of units. Quadruple-entry is doing this for both buyer and seller… 4. Basic price is amount receivable from purchaser (- tax, +subsidies) (excludes transport) Producer price is amount receivable from by producer (- tax) (excludes transport) Purchaser price = amount paid (excluding tax) (includes transport) 5. It’s important to make sure we’re using the same concepts and classifications across the accounts 6. The Stock  Flow idea needs some adaptation, since ecosystems can regenerate on their own… SEEA-EEA: Key Concepts

Balancing the books of environmental assets
Services Waste & degradation Economy and well-being Regeneration Time 1 The ecosystem services cascade and accounting principles help us balance the books… Are we using and degrading ecosystems faster than they can regenerate? When de decide to convert an ecosystem, do the benefits outweigh the costs? To illustrate, here we have a world situation at Time 1. Renewable resources (ecosystems and biota) are regenerating. People are drawing a certain amount of services to support a certain level of consumption. SEEA-EEA: Key Concepts

Balancing the books of environmental assets
Services Waste & degradation Economy and well-being Regeneration Time 2 At Time 2: The stock of assets are smaller The level of regeneration is lower More humans are depending more on services to support more consumption. Wastes and degradation are higher. Is it sustainable? What can we do? SEEA-EEA: Key Concepts

Ecosystem accounting is spatial
Ecosystems are different and function differently depending on where they are Their capacity to supply services depends on their location The benefits of many services depends on whether or not the ecosystems are accessible Therefore…Ecosystem accounting needs to integrate spatial and non-spatial data For example, wetlands in northern Canada may have the capacity to purify water, but there is no population there to benefit from it. Looking only at a land cover map, forests, for example, may seem to be the same all over the country. However, they may have different species, climates, soil types, etc. Some parts may be accessible by roads and be used for forestry. Some parts may be important to regulate water flows to downstream communities. To understand all this, it is essential to keep our information in a spatial database and to use geographic information systems and models. SEEA-EEA: Key Concepts

Ecosystem accounting is spatial
Geographic information systems (GIS) Manage spatial information as layers Have tools to integrate spatial information: Overlay different data where space is the common denominator Aggregate point information (e.g., water sampling station) to larger areas (polygons) Attribute information from larger areas to smaller ones (downsampling) Geospatial statistics (interpolation, modelling) Generate tables based on common properties (e.g., land cover and land cover change) GIS and spatial modelling is integral to ecosystem accounting. It is useful to understand what it can and can’t do. If you are not familiar with GIS, it would be good to take an introductory course. You don’t need to be a GIS expert, but you will be working with them. SEEA-EEA: Key Concepts

Pop quiz! What is an important ecosystem type in your country and what services does it provide? What are examples of spatial data that you may wish to integrate into ecosystem accounting? Why is GIS a useful tool for ecosystem accounting? Examples: Service: Water regulation for hydro power Spatial Data: hydrology, land cover (forest), land use (e.g., agriculture), location of dams, Why GIS? Understand spatial relationships (e.g., forest cover in upper drainage area, downstream flows, area benefitting… SEEA-EEA: Key Concepts

SEEA-EEA accounts, tools and linkages
Thematic: Land, Water, Carbon, Biodiversity Tools: Classifications, Spatial units, scaling & aggregation, Biophysical modelling Extent Condition Physical Services Supply Services Use Tools: Valuation techniques Services Supply Services Use Monetary Asset The physical accounts are all spatially detailed and are based on the same Spatial Units. The Ecosystem Extent Account records the spatial area of the country in hectares. The Ecosystem Condition Account records ecosystem quality and other biophysical measures. The Ecosystem Services Supply account records the physical measures of ecosystem service from ecosystems. The Ecosystem Services Use Account records the flows of theses services to beneficiaries. Ecosystem Capacity records the modelled capacity for ecosystems to generate services. This is based on the Condition Account. The thematic accounts stand on their own, since they (a) are of specific policy interest and (b) provide input to the other accounts. The Land Account supports the creation of the Ecosystem Extent Account. The Carbon Account records stocks and flows of carbon, especially carbon stored in plants and soils (biocarbon). The Water Account records stocks, flows and use of water, including measures of quality (= condition) and use by ecosystems. The Biodiversity Account records data at the species and habitat level. Supporting information includes socio-economic conditions and activities that affect the condition and service flows. We also can use ecological production functions to estimate future flows of services. We will discuss some tools that can help us establish these accounts: Using common classifications across all accounts is important to ensure that we’re talking about the same thing Spatial Units are essential to establish the spatial framework for all accounts Biophysical modelling is important to help make estimates of unknown measures (e.g., services, capacity…) Many of the monetary accounts are also spatially detailed using the same spatial units. The monetary Ecosystem Services Supply Account is the monetary side of the biophysical Ecosystem Services Supply Account. The monetary Ecosystem Services Use Account is the monetary side of the biophysical Ecosystem Services Use Account The Ecosystem Asset Account records the Net Present Value of future stream of services from a given ecosystem asset. The Augmented I-O table (input-Output) and Integrated Sector Accounts can be used to link the SEEA-EEA accounts with standard economic accounts (the SNA) Supporting: SNA, I-O tables, economic production functions Augmented I-O Table Integrated Sector Accounts and Balance Sheets SEEA-EEA: Key Concepts

SEEA-EEA Accounts and Tools
Today’s session presents 2-4 slides on each topic: Accounts Ecosystem Extent Account Ecosystem Condition Account Thematic Accounts: Water Account Carbon Account Biodiversity Account Ecosystem Services Supply Account Ecosystem Services Use Account Ecosystem Capacity Augmented I-O Tables Integrated Sector Accounts and Balance Sheet Supporting information Tools Classifications Spatial units, scaling and aggregation Biophysical modelling Valuation This is not an “easy” introduction to the accounts and tools used in ecosystem accounting. You don’t need to remember everything. Details will be covered in separate modules. Think of this as a “Table of Contents” for a course in Ecosystem Accounting. We will only be covering some of the modules in this workshop. SEEA-EEA: Key Concepts

Account 1: Extent The Ecosystem Extent Account is the “core” of ecosystem accounting. It links the other accounts together by establishing a common spatial infrastructure. SEEA-EEA: Key Concepts

Level 0: Account 1: Extent
What? Ecosystem assets are spatial areas containing a combination of biotic and abiotic components and other characteristics that function together (SEEA-EEA Sections 2.31, 4.1) National coverage of land cover, land use, ownership (terrestrial, freshwater, coastal and marine areas) Why? Land management, conservation policies Spatial foundation for other accounts  basis for allocating macro data to spatial units Builds on SEEA-CF (land, forest, water) Indicators: Land cover change  where changes occurring Land cover/use intensity  who owns it The Extent Account measures the area of coverage of a given ecosystem type (e.g. hectares of tree-covered area) We refrain from using the term “ecosystems” here, since there are many perspectives on what an ecosystem is. For accounting purposes, we define spatial units that are used consistently across all accounts. SEEA-EEA: Key Concepts

What does an Extent Account look like? Cover Ownership Use Maps Tables Spatial units Classifications (Note: Text in Green means this is another topic in the presentation) The Ecosystem Extent account is compiled using maps of land cover, land use and ownership. We can create tables from these by Classifying our Spatial Units. Note that the units are all in hectares…The account has an opening stock and a closing stock and records the reasons for changes over the accounting period. In Level 1, we’ll get a chance to compile one of these… SEEA-EEA: Key Concepts

What does an Extent Account look like? An integrated spatial (GIS) database that overlays: Land cover: forest, wetland, lake… Use and intensity of use: agriculture, forestry, protected… Ownership: business, private, government Classified into Spatial Units At high resolution (30m to 100m, maximum 500m) with national coverage For two or more periods (change over time) Based on comparable Classifications, quality, methods and Spatial Units Units: hectares Records: opening stock, closing stock, additions, reductions All these criteria are “ideal”. One could have a land cover account comparing data from two years with different quality…as long as you understand the differences and document them! Regional coverage is OK for pilot studies, but there should be a plan to create a national land account. SEEA-EEA: Key Concepts

What do you need to compile an Extent Account? GIS platform: software, protocols, spatial units Classifications: land cover, land use, ownership National level data: Existing land account would be useful Satellite: land cover, aerial photography Census: agriculture, population, settlements Forest inventories Hydrological, topographic (rivers, drainage areas, elevation, coastlines) Cadastral (ownership, tax) Expertise: Land managers, ecologists, geographers (GIS, satellite imagery, integration) We’ll cover Spatial Units and Classifications later in the Tools section. Questions: What might be the priorities, opportunities and constraints to compiling an Ecosystem Extent Account in your country? SEEA-EEA: Key Concepts

Account 2: Condition The Ecosystem Condition Account is built on the Ecosystem Extent Account… SEEA-EEA: Key Concepts

Level 0: Account 2: Condition
What? Ecosystem condition reflects the overall quality of an ecosystem asset, in terms of its characteristics. (SEEA EEA paragraph 2.34) Why? Policies to limit degradation of natural heritage, rehabilitation of degraded ecosystems Links to capacity to produce services (Services Supply) Indicators: Indices of condition  change over time  where changes Good/bad condition (exceeding “safe” levels)  where The Condition Account measures quality (e.g., water quality) and other characteristics (e.g., stream flow rates) SEEA-EEA: Key Concepts

What does a Condition Account look like? Maps Tables Vegetation Soil Biodiversity Water Carbon Scaling & aggregation Again…you don’t need all the maps to get started… Note that the units of measure vary according to the component and actual measures being used. We can combine quality measures into an overall index. Changes over time would be very useful… SEEA-EEA: Key Concepts

What does a Condition Account look like? Spatially-detailed condition measures (quality or biophysical) for each characteristic: Vegetation Biodiversity (species abundance, diversity indices) Soil Water Carbon Air Overall measures (e.g., heterogeneity) Selected to reflect an area’s capacity to generate services Summarized in terms of an index Accounts for changes over time (accounting period) Attributes changes to drivers (natural and human) There are many possible measures that can go into a Condition Account. These can come from existing programs that measure water, vegetation, soil and air quality… SEEA-EEA: Key Concepts

What do you need to compile a Condition Account? Ecosystem Extent Account Common spatial database (Spatial units) Data: Condition measures from satellite imagery and field studies over two periods of time Environmental monitoring data (water, air, soil, species) Expertise: Ecologists (vegetation, soil, water) Statisticians (methodologists to create indices, Scaling, Aggregation) Environmental policy analysts (focus on relevant indices) Geographers (GIS, remote sensing, integration) Discussion? E.g., what are the priorities, opportunities and constraints in your country? Where might you get data on Ecosystem Condition? SEEA-EEA: Key Concepts

Account 3: Water The Water Account is considered a “thematic account” since it is not, in itself an ecosystem account. SEEA-EEA: Key Concepts

Level 0: Account 3: Water What? Why?
Spatially-detailed version of SEEA-CF Water Account to capture: Inter-ecosystem flows of water (SEEA-EEA 4.62), Water quality and Supply/use for ecosystems Why? Policies on water security, water quality, impacts of water abstraction on ecosystems Links to other accounts (Condition, Services Supply & Use) Links to SEEA-CF; SEEA-WATER Indicators: Local water supply/use, quality (use > supply?) Variability in supply, trends (droughts, floods) You may ask why another water account…SEEA-CF already has one… It can be built on an existing Water Account. Furthermore, it includes ecosystems as users. Water is also an Ecosystem Service since clean water requires less treatment to use. (Deleted: SEEA-CF (water supply and use), SEEA-Water, International Recommendations for Water Statistics) SEEA-EEA: Key Concepts

Level 0: Account 3: Water What does a Water Account look like? Maps
Tables Use Rainfall Hydrology Spatial units Classifications Biophysical modelling Socio-economic data Again, the focus of the Water Account may be different depending on national contexts and data availability. This is a Water Supply and Use Table. A corresponding Water Assets table would link this to the ecosystem types that provide and use the water. Canada’s Human Activity and the Environment (2010) focussed on Freshwater supply and use (not stock). From this, you can calculate the total amount available for ecosystems. There is no explicit link to ecosystems as suppliers and users of water here. That would make the table much more complex. SEEA-EEA: Key Concepts

Level 0: Account 3: Water What does a Water Account look like?
Spatially-detailed data on: Stock Supply, and Use including soil moisture & groundwater Water quality measures (contribution to Condition Account) SEEA-EEA: Key Concepts

Level 0: Account 3: Water What do you need to compile a Water Account?
Ecosystem Extent Account SEEA-CF Water Account (national level) Common spatial infrastructure (Spatial Units) Data: Spatially-detailed supply (rainfall, transfers) Use (abstraction, inter-ecosystem transfers); Water quality measures Expertise: Geographers (GIS and remote sensing) Hydrologists Ecologists Climatologists Discussion? E.g., what are the priorities, opportunities and constraints in your country to compiling Water Accounts? SEEA-EEA: Key Concepts

Account 4: Carbon Carbon is also considered a “Thematic” account, since it is not an Ecosystem Account by itself. SEEA-EEA: Key Concepts

Level 0: Account 4: Carbon
What? Accounts for biocarbon as an asset (e.g., soil carbon) Carbon-related services (sequestration and storage) Carbon as a characteristic of ecosystem condition (productivity) Why? Policies on climate change, low-carbon economy Assess changes in land cover and land use on carbon stocks and sequestration Links to other SEEA accounts (Condition, Services Supply) Links to SEEA-CF (timber, soil, materials) Links to international guidelines (IPCC and REDD+) Indicators: Natural and human additions to carbon stock  where Natural and human removals from carbon stock  where Why do we need a separate carbon account? IPCC doesn’t include natural sources… IPCC = Intergovernmental Panel on Climate Change REDD+ = Reducing Emissions from Deforestation and Forest Degradation in developing countries SEEA-EEA: Key Concepts

What does a Carbon Account look like? Soil Vegetation Hydrology Removals Maps Tables Scaling Biophysical modelling Is that all you need? In this example, understanding the stocks, additions and transfers between “spheres” helps us create an account. We will be focussing on the biosphere. SEEA-EEA: Key Concepts

What does a Carbon Account look like? Spatially detailed in terms of: Stock Additions and reductions of biocarbon Natural & human additions and removals SEEA-EEA: Key Concepts

What do you need to compile a Carbon Account? Ecosystem Extent Account Common spatial infrastructure (Spatial Units) Lookup tables (sequestration and storage by land cover type) Data: Biocarbon (above-ground biomass) from satellite data Carbon sequestration and storage from vegetation cover Soil carbon from soil inventories Removals from agriculture & forestry data, fires Expertise: Ecologists (biophysical modelling) Agriculture, forestry experts Geographers (GIS, remote sensing) Discussion? E.g., what are the priorities, opportunities and constraints in your country for compiling Carbon Accounts? SEEA-EEA: Key Concepts

Account 5: Biodiversity
Biodiversity is also a “thematic” account. SEEA-EEA: Key Concepts

Level 0: Account 5: Biodiversity
What do Biodiversity Accounts contain? Biodiversity information linked to areas of ecosystems (from Extent Account) Spatially detailed information on key species: Abundance, Richness Conservation status Other characteristics (e.g., health) Spatially detailed summary statistics (index) on species diversity (used in Condition Account) The biodiversity account captures information on biodiversity that is relevant to spatially explicit areas of ecosystem, defined in the Extent Account. 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. SEEA-EEA: Key Concepts

Why would you create Biodiversity Accounts? To compare trends in biodiversity with economic and social activity in a spatially explicit manner To link biodiversity information with other SEEA accounts (Condition, Ecosystem Services Generation) To meet global commitments under the Convention on Biological Diversity’s Strategic Plan for Biodiversity ( ) To support sustainable development 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. Biodiversity accounts provide the information to incorporate biodiversity and the benefits it provides with other accounts in the SEEA framework. Internationally, the CBD’s Strategic Plan for Biodiversity ( ) 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. Biodiversity accounting provides a framework to accomplish this. Understanding trends and impacts ion biodiversity and the benefits it provides can support more sustainable decision making. SEEA-EEA: Key Concepts

What does a Biodiversity Account look like? Maps Tables Species 2 Species 1 Species 3 Ecosystems Species data: - abundance - richness - classification - conservation status - characteristics - health Priority species and ecosystems Index Species 1 Species 2 Pop. Ecosys. Area Reference Opening Closing Net change This is only one possible example. A Biodiversity Account is useful to bring together data on species and ecosystems from many sources… 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. 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). SEEA-EEA: Key Concepts

What do you need to be able to produce a Biodiversity Account? The key policy questions & goal of the Biodiversity Account List of key or priority species List of data sources (e.g., national, global) supported by a dialogue with data providers to ascertain data availability. Expertise to mobilise data and plug data gaps: Species measurement Biophysical modelling, GIS Indicator development Statistical analysis The Biodiversity Account will therefore be restricted to a subset of key species for which data is available. What species are chosen also depends on what features of biodiversity are of greatest interest and the objective of the Biodiversity Account. Data may be available from a variety of sources. For example, international reporting commitments to Multilateral Environmental Agreements such as the Ramsar Convention, which requires parties to report on fauna species in important wetland sites. Constructing Biodiversity Accounts requires dialogue between statisticians and data providers. Data providers may be ecologists, geographers, modellers etc. SEEA-EEA: Key Concepts

What do you need to produce a Biodiversity Account? Information on key or priority species Species classifications (family, genus) Species measures (ranges, richness, population counts over time) Characteristics (e.g., habitat, specialist/generalist, health) Conservation status Extent Account or some form of spatial infrastructure for ecosystems (spatial units) The Account requires data on the key species including (but not limited to) their range and population counts over time. Other useful information that can be included are certain species characteristics, e.g., is the species a habitat specialist, and if it has been assessed, its conservation status. Information needs to be assigned to ecosystems in a spatially explicit manner. Ideally, the spatial units described in the extent account. SEEA-EEA: Key Concepts

Account 6: Services Supply
The Services Supply Account is in physical and monetary terms. We can apply valuation techniques to the Physical flow of services to derive monetary measures. SEEA-EEA: Key Concepts

Level 0: Account 6: Services Supply
What? Physical and monetary flows of “final” ecosystem services from ecosystems to beneficiaries Directly used by (or affect) people Why? Inform policies of contribution of ecosystems to human well‑being Assess trade-offs between development and conservation Link to standard economic production measures in SNA Link to other SEEA-EEA accounts (Condition, Services Use, Monetary Asset valuation) Indicators: Flows of individual services (physical and monetary)  change Indices of aggregated services by ecosystem type  change This is an area of great interest in the scientific community. It gives ecologists a way to talk to economists. We’re cautious about “monetizing everything” since results can be unusable and misleading. SEEA-EEA: Key Concepts

What does a Services Supply Account look like? Regulating Provisioning Cultural Land cover Maps Tables Lookup tables Biophysical modelling Valuation Monetary Services Supply In this example, there are many types of services from each ecosystem type. These are derived from spatially-detailed information from field studies, and biophysical modelling. Some services can be estimated from lookup tables. In a complete account, there would be an accounting of opening and closing balances… SEEA-EEA: Key Concepts

Example (Services Supply in physical units) This is a real-life example based on Remme et al for the Limburg province of the Netherlands. Note that the cropland, forest and heathland are providing a majority of the services measured…(Highlighted in yellow) This is for one accounting period. It would be useful to see changes over time… Note: There is no total for all services…(could develop an index) It is evident that Cropland is an important producer of many of the services… Source: Remme et al., 2014 (Limburg, the Netherlands) SEEA-EEA: Key Concepts

What does a Services Supply Account look like? Spatially-detailed physical measures of “final” services according to common Classification: Provisioning Regulating Cultural Physical measures (crops, flood control, clean drinking water, carbon sequestration, recreation, …) Valuation where appropriate and available  Monetary Services Supply SEEA-EEA: Key Concepts

What do you need to create a Services Supply Account? Ecosystem Extent, Ecosystem Condition Common spatial infrastructure (Spatial Units) Common Classification of services Data: Field studies Transfer from other locations (benefits transfer, valuation) Economic production (agriculture, forestry, fisheries, water) Biophysical modelling Expertise: ecologists, geographers (GIS), economists, policy analysts, statisticians Discussion? E.g., what are the priorities, opportunities and constraints in your country for compiling a Services Supply Account? SEEA-EEA: Key Concepts

Account 7: Services Use The Ecosystem Services Use Account records the users (beneficiaries) of ecosystem services in physical and monetary units. We can use Valuation Techniques to estimate the monetary values of the physical services. SEEA-EEA: Key Concepts

Level 0: Account 7: Services Use
What? Physical and monetary flows from ecosystems to beneficiaries Why? Social, economic and environmental policies: Who benefits from ecosystem services? Who is dependent on ecosystem services? Link to consumption accounts in SNA (Augmented I-O…) Link to other SEEA-EEA accounts (Services Supply) Indicators: Dependence on ecosystem services  where and whom Public goods from private ecosystems Now, we need to track the flows of Ecosystem Services to the beneficiaries (the people, businesses and governments) that use them. SEEA-EEA: Key Concepts

What does a Services Use Account look like? Tables Services Supply Account Allocation Valuation Monetary Services Use The Ecosystem Services Use Accounts allocate the Ecosystem Services Supply Account to beneficiaries. Note that the beneficiaries can be local, national or global. For example, everyone in the world benefits from carbon sequestration. Ideally, the Services Supply Account and Services Use Accounts would balance. The Accounting Principle is that Supply = Use SEEA-EEA: Key Concepts

What does a Services Use Account look like? Aggregate tables of use of ecosystem services by: Beneficiary and Ecosystem type Physical measures Valuation where appropriate and available  Monetary Services Use We don’t recommend trying to create a spatially-detailed Services Use Account. Beneficiaries may be local, national or global. It would be a challenge to figure out exactly where they are. SEEA-EEA: Key Concepts

What do you need to compile a Services Use Account? Services Supply Account Data: Beneficiaries of ecosystem services by: service type of beneficiary and type of asset Expertise: Ecosystem accounting Discussion? E.g., what are the priorities, opportunities and constraints in your country to compiling a Services Use Account? SEEA-EEA: Key Concepts

Account 8: Capacity The Ecosystem Capacity Account is not a formal SEEA-EEA account. It is more of an analytical process. It uses Biophysical Modelling to estimate the capacity for ecosystems to supply services in the future or if services measures are not available. SEEA-EEA: Key Concepts

Level 0: Account 8: Capacity
What? Expected flows of services Modeled using Ecosystem Condition Account Current and future capacity to supply services Why? Policies related to changing land use, land use intensity, environmental quality, population distribution Ecosystem assessments: Trade-off scenarios of services for different future conditions Estimate Services Supply if little data available Calculate Ecosystem Asset Account “Value” is Net Present Value of future flows of services Indicators: Services in physical and monetary terms Most ecosystem assessments make assumptions about the future. Often, these are based on scenarios of future conditions and future capacity to generate services. Condition is entirely based on estimations. This is not treated in detail in the SEEA-EEA. Note that any estimation of future conditions is highly speculative, but it can help inform decisions on trade-offs. SEEA-EEA: Key Concepts

What do Capacity Accounts look like? Condition Account (Current) Capacity (Current) Assumptions about future Condition Account (Future) Biophysical Modelling Capacity (Future) The objective is to apply Biophysical Modelling (ecological production functions) to estimate unknown Services Supply. This can be done for the present if there are no data for certain cells in the Services Supply Account. If we apply assumptions about the future conditions, we can estimate a Future Condition Account. We can apply the same biophysical models to create a Future Capacity Account. SEEA-EEA: Key Concepts

What do Capacity Accounts look like? Spatially-detailed: by ecosystem and service type Looks the same as the Services Supply Account But: Services are modelled Biophysical models estimate Capacity from Condition Capacity Accounts record “hypothetical” flow of services e.g., water purification potential of wetlands if there is no pollution or beneficiaries Assumptions about the future are used to generate a future Conditions Account Biophysical models estimate Future Capacity Account A Capacity Account looks much like the Services Supply Account, but it would contain modelled values. These modelled values can be used to understand the potential services supply that can then be combined with scenarios of future services use. SEEA-EEA: Key Concepts

What do you need to compile a Capacity Account? Extent Account and Condition Account Ecosystem services classification Scenarios: assumptions about the future Data: Ecological production functions Models may be generic or calibrated to local conditions Expertise: Ecologists (modelling & production functions) Spatial analysts (many models are linked to GIS packages) Ecosystem accounting (to ensure coherence) Stakeholders (to agree on future scenarios) Discussion? E.g., what are the priorities, opportunities and constraints in your country to developing Capacity Accounts? SEEA-EEA: Key Concepts

Account 9: Augmented I-O
The Augmented Input-Output Account is a monetary account that builds on the Ecosystem Services Supply and Use Accounts… Are there any Input-Output experts here? Input-Output tables record the Output of commodities from the Producing Sector to the Users. Since they include intermediate consumption, you can track commodities from extraction/harvesting to final consumption (including households and export…). SEEA-EEA: Key Concepts

Level 0: Account 9: Augmented I-O
What? Addition to standard Input-Output tables to take into account ecosystems (producers) and ecosystem services (commodities) Why? Show contribution of ecosystems and services to the economy (direct and indirect) Support decisions about the economic impacts of ecosystem change Link to SNA Use I-O methods to balance production and consumption The basic idea is to add information about ecosystems and their services to standard Input-Output tables. This is largely conceptual. National I-O tables have been augmented for other purposes, but there is no current application of this for ecosystem services. This is not something you would want to try early on in the process of developing ecosystem accounts. SEEA-EEA: Key Concepts

What do Augmented I-O Accounts look like? Services Supply Augmented I-O Services Use In this example, the Services Supply and Use Accounts are allocated to economic sectors. Note that ecosystems could constitute producing sectors. SEEA-EEA: Key Concepts

What do you Augmented I-O Accounts look like? National level I-O tables (provincial or state if available) Rows added for commodities (ecosystem services) Columns added for producers (ecosystems) Physical or monetary Need monetary to balance One challenge would be to separate what is already in the SNA (e.g., water purchased) from what is not already in the SNA (water not purchased, clean air, erosion protection…). SEEA-EEA: Key Concepts

What do you need to compile Augmented I-O Accounts? Services Supply Account (physical and monetary) Services Use Accounts (physical and monetary) Data: Economic production functions including ecosystem services e.g., crop = f(ecosystem services, capital, labour…) Expertise: Input-Output experts (set up and operation) Productivity experts (production functions) Ecological economists (production functions) If there is a demand for macro-economic aggregates or scenario analysis, this would be useful. No one has done this yet. Discussion? E.g., what are the priorities, opportunities and constraints in your country to producing Augmented I-O Tables? SEEA-EEA: Key Concepts

Account 10: Integrated Sector Accounts and Balance Sheet
The Integrated Sector Accounts and Balance Sheets add an ecosystem dimension (especially degradation) to the SNA Accounts… SEEA-EEA: Key Concepts

Level 0: Account 10: Integrated Sector Accounts and Balance Sheet
What? Economic sector level summary accounts Standard aggregates adjusted for degradation Why? Augment the economic accounts of the SNA by integrating into the sequence of accounts Integrated Sector Accounts produce aggregate measures of economic activity, such as national income and saving, which are adjusted for ecosystem degradation. Balance Sheets compare the values of ecosystem assets with values of produced assets, financial assets (and liabilities) and other economic assets. You may not find this exciting if you’re not a national accountant, but…this is one of the important applications of ecosystem accounting. As with the Augmented I-O, these are conceptual and there is no current example of this. Some countries adjust balance sheets for the depletion of non-renewable resources (using the SEEA-CF) such as minerals, timber and land. SEEA-EEA: Key Concepts

What do Integrated Sector Accounts and Balance Sheet look like? Asset Services Supply Services Use SNA NPISH is Non Profit Institutions Serving Households In the SNA and SEEA-CF, all these accounts are linked. That is, - Production Account takes: Total Output Less: Intermediate consumption = Gross Value Added Less Consumption of Fixed Capital = Net Value Added Less Depletion/Degradation of natural resources = Depletion-adjusted Net Value Added The Generation of Income Account takes Gross Value Added Less Compensation of Employees Payable Less Other taxes less subsidies on production Less Taxes less subsidies on production = Gross Operating Surplus Less Depletion and degradation of natural resources = Depletion-adjusted Net Operating Surplus SEEA-EEA: Key Concepts

What do Integrated Sector Accounts and Balance Sheet look like? For example, the Production Account takes Total Output Less: Intermediate consumption = Gross Value Added Less: Consumption of Fixed Capital = Net Value Added Less Depletion/Degradation of natural resources = Depletion-adjusted Net Value Added Similar calculations result in other important indicators: Depletion-adjusted Net Saving As described in the previous slide, this allows us to calculate the “Sequence of Accounts” such as subtracting Intermediate Consumption from Total Output to arrive at Gross Value Added. SEEA-EEA: Key Concepts

What do you need to compile Integrated Sector Accounts and Balance Sheet? Asset Account Services Supply Account Services Use Account SNA Data: Monetary value of assets, services Expertise: National accounting Ecosystem accounting Discussion? E.g., what are the priorities, opportunities, constraints in your country? Indonesia has mentioned the intent to develop measures of degradation-adjusted net savings. Are other countries interested? SEEA-EEA: Key Concepts

Supporting information: Socio- economic
This is a short section to discuss the applications of socio-economic data and drivers of change… They don’t have a place in the diagram yet. SEEA-EEA: Key Concepts

Level 0: Supporting Information: Socio-economic
What? Socio-economic data and other drivers of change Why? People, governments and businesses are drivers of change and beneficiaries of Ecosystem Services Understand why a change occurred (natural or human?) Support scenarios of future (Capacity) Links to SEEA-EEA accounts (Extent, Condition, Water, Carbon, Biodiversity, Services Supply, Services Use, Asset) Indicators: Allocate changes in assets to local, national and global drivers Allocate supply of services to beneficiaries Estimate dependence of population and business on ecosystems (food security, water security, flood risks) Socio-economic information is useful to support the production of the other accounts. SEEA-EEA: Key Concepts

What does Socio-economic Information look like? Drivers of change: Maps or tables to explain changes in Extent, Conditions and Services Supply e.g., changes in land-use e.g., trends in rainfall Socio-economic data: Maps or tables to explain business and population drivers e.g., changes in commodity prices e.g., trends in population growth Maps or tables to calculate beneficiaries e.g., population distribution (Note this doesn’t distinguish between socio-economic and environmental drivers of change. It would have made the titles too long.) SEEA-EEA: Key Concepts

What do you need to compile Socio-economic information? Common spatial infrastructure (Spatial Units) Drivers of change data: Local, global climate Global, national, local economic conditions (GDP, employment, growth rates) Local activities (agriculture intensity, forestry intensity, recreation intensity) Local development plans (land use, urban expansion) Expertise: Economists, climate specialists, sociologists, regional planners It is very useful to have all these explanatory factors in one spatial database… Again, we are trying to understand why changes occurred, who benefits & who loses, what the future conditions might be. SEEA-EEA: Key Concepts

What do you need to compile Socio-economic information? Socio-economic data: Local population distribution (Census, surveys, case studies): Income Industry of employment Dependence on nature (Case studies) Business types by location (surveys, Business Register) Environmental protection expenditures Dependence on nature (biomass, energy, water, pollution regulation…) Expertise: Economists, sociologists, statisticians, geographers (GIS, integration) Many countries already have small-area population statistics. Business activities may be more challenging, but a Business Register could be used to obtain data on industry sector and range of employment… Discussion? E.g., what are the priorities, opportunities and constraints in your country? SEEA-EEA: Key Concepts

End of Accounts… Questions? Discussion
Prepare for group exercise…think about: What are your priority accounts? What are the opportunities to produce them? Stakeholders? Institutional mechanisms? Current activities? What are the constraints? Data? Capacity? Next up: Tools (Could have pop quiz at this point: What are some biophysical accounts, monetary accounts, thematic accounts? What could be included in a Condition Account? Why is GIS important to ecosystem accounting? We will have the group exercise on the last day of the workshop… SEEA-EEA: Key Concepts

Level 0: Tools Classifications Spatial units, scaling & aggregation
Biophysical modelling Valuation Other tools: Statistical quality guidelines Interdisciplinary teams Case studies and surveys Not discussed: GIS (spatial analysis), data analysis, communications, engagement, data management, project planning and evaluation… Note: we are not going into detail of a few topics that may be important to develop a work plan… SEEA-EEA: Key Concepts

Tools 1: Classifications
Common classifications is one of the benefits of having integrated information in a set of accounts… First you need to classify what you have… SEEA-EEA: Key Concepts

Level 0: Tools 1: Classifications
What? From SEEA-CF: Land Cover, Land Use Economic units, industry sectors New: Final ecosystem services Why? Accounting needs Consistent and Coherent and Comprehensive: Classifications Consistent: use same classification for same concept Coherent: with other classifications Comprehensive: “Classifications Certify Complete Coverage” It’s useful to start with the same classifications or convert to common classifications… We also use other classifications from the SNA: industry, commodity, sector, activity… SEEA-EEA: Key Concepts

Land Cover From SEEA-CF (p.276) Uses FAO LCCS3 (Food and Agriculture Organization – Land Cover Classification System v3) definitions High-level aggregate: May adapt to local situations Used as basis for “ecosystem type” 01 Artificial surfaces (including urban and associated areas) 02 Herbaceous crops 03 Woody crops 04 Multiple or layered crops 05 Grassland 06 Tree covered areas 07 Mangroves 08 Shrub covered areas 09 Shrubs and/or herbaceous vegetation, aquatic or regularly flooded 10 Sparsely natural vegetated areas 11 Terrestrial barren land 12 Permanent snow and glaciers 13 Inland water bodies 14 Coastal water bodies and inter-tidal areas Note “Land Cover” includes terrestrial, freshwater, coastal and marine. We’ve gone back to the SEEA-CF classifications, since they’re more consistently Land Cover classes (as opposed to mixing land use). SEEA-EEA: Key Concepts

1.0 Land 1.1 Agriculture 1.2 Forestry 1.3 Aquaculture 1.4 Built up and related areas 1.5 Maintenance and restoration of environmental functions 1.6 Other uses of land 1.7 Land not in use 2.0 Inland waters 2.1 Aquaculture and holding facilities 2.2 Maintenance and restoration of environmental functions 2.3 Other uses of inland waters 2.4 Inland waters not in use 3.0 Coastal waters 3.1 Aquaculture and holding facilities 3.2 Maintenance and restoration of environmental functions 3.3 Other uses of coastal waters 3.4 Coastal waters not in use 4.0 Exclusive Economic Zone (EEZ) 4.1 Aquaculture and holding facilities 4.2 Maintenance and restoration of environmental functions 4.3 Other uses of coastal waters 4.4 Coastal waters not in use Land Use From SEEA-CF (p. 266) Detailed (4-digit level) This is the best we have at the moment. It bears further development and testing. SEEA-EEA: Key Concepts

Services Based on Common International Classification of Ecosystem Services (CICES) Not mutually exclusive A list of “final” services More detail (4-digit) Does not include “supporting services” (= ecosystem functions) Digits are mine…we’ve compared the CICES to other classifications and have found it to be the most comprehensive… At 4-digits, we get 48 types (and those can be disaggregated by sub-type, such as type of crop or type of pollutant absorbed) Supporting services are considered ecosystem functions since they are not directly used by people… SEEA-EEA: Key Concepts

From SEEA-CF: Economic Units Enterprises (business  industry) Households (people and non-corporate business) Government Rest of the world SEEA-EEA adds a spatial dimension: Local Regional National Global Discussion…what classifications are used in your country? (Land Cover, Land use, Ownership; economic units…) (Others? Activities  expenditures…) SEEA-EEA: Key Concepts

Tools 2: Spatial units Using common spatial units underlies the whole system of Ecosystem Accounts… This section covers Spatial Units, Scaling and Aggregation…three slightly different, but related topics. SEEA-EEA: Key Concepts

Level 0: Tools 2: Spatial units
What? A common definition of Spatial Units for all accounts Based on surface characteristics (terrestrial, freshwater, coastal and marine) Why? Accounting needs statistical units about which information is compiled, derived, reported and compared e.g., business statistics are built on locations, establishments, companies and enterprises Information is collected on many spatial levels Needs to be consolidated within a GIS or spatial model First step in tabulating & aggregating more detailed data Not everybody is a GIS expert Links accounts together: (Extent, Condition, Services Supply…) SEEA-EEA: Key Concepts

Level 0: Tools 2: Spatial units
Recommended three levels: hierarchical and mutually exclusive: Basic Spatial Unit (BSU) Pixel or grid cell Ecosystem Unit (EU) Homogenous according to criteria (cover, slope, drainage area, elevation…) Consolidate for tables by EU type Ecosystem Reporting Area (ERA) For reporting (sub-drainage area, administrative area…)  Establishes Ecosystem Extent Account *Note there has been a change in terminology since the SEEA-EEA. The three spatial units were called BSU, LCEU and EAU. In Canada, it was important to keep the EUs within pre-defined soil landscape units. These were already defined in the Ecological Classification of Canada and widely used for ecological analysis. This approach uses land cover as the basis for defining the spatial unit. There are other options that may be more appropriate for your country. For example, if ecosystem types have already been defined, then these could be used. As in business accounting, some information is available at different levels (location, establishment, company, enterprise…) Source: Statistics Canada, 2013 SEEA-EEA: Key Concepts

Level 0: Tools 2: Scaling What? Why?
Converting information from one scale to another (spatial, temporal, thematic) Why? Information exists in various types: Point (water quality monitoring, “study sites”, etc.) Area (land cover, protected area, species range, etc.) Network (roads, streams, corridors, etc.) Need to understand how and when to attribute information from one scale to another We usually think of scaling as converting from one spatial unit (e.g., point location) to another (e.g., a protected area). The principles are the same when converting from one time scale (e.g., monthly to annual) or thematic scale (e.g., 35 categories of land cover to 12). SEEA-EEA: Key Concepts

Level 0: Tools 2: Scaling Main approaches Downscaling Upscaling
Attributing information from larger areas to smaller areas contained within them Caution: Data need to be evenly distributed Upscaling Attributing information from smaller areas to larger areas Caution: Data need to be representative Transfer Transferring information measured in one location to another Often used in terms of Benefits Transfer Caution: Locations need to be very similar Your GIS team members should have the appropriate tools to ensure that upscaling and downscaling are done properly. There is a large body of research about how to do Benefits Transfer. SEEA-EEA: Key Concepts

Level 0: Tools 2: Aggregation
What? Combining many measures into simpler ones Dissimilar measures may be aggregated using: Indices (e.g., water quality index) Conversion to common units (e.g., CO2 equivalents) Why? Accounting requires aggregates (of dollars, business types, sub-populations, regional summaries, national indicators…) Summary indicators for dashboards, linking to economic accounts SEEA-EEA: Key Concepts

Level 0: Tools 2: Aggregation
Aggregating dissimilar biophysical measures: Requires indexing (comparison with reference) Example: ecosystem condition measures, service measures Caution: Requires understanding of relative importance of component measures (weighting) Final aggregates e.g., total value of ecosystem services, total asset value Require many assumptions (relative importance, methods…) Services can be competing, complementary or independent Caution: Monetary valuation is often applied inappropriately  Valuation results can be misleading SEEA-EEA: Key Concepts

Tools 3: Biophysical modelling
Biophysical modelling is also an important tool…It is used in many of the accounts, as we have seen. SEEA-EEA: Key Concepts

Level 0: Tools 3: Biophysical modelling
What? Four main approaches: Why? Estimate Ecosystem Services across spatial units and time Estimate Ecosystem Capacity from Ecosystem Condition Combine data from various sources and scales (e.g., point field data and satellite data) Estimate unknown data values GIS-based spatial modelling approaches have methods built-in Look-up tables Statistical approaches Geostatistical interpolation Process-based modelling (Conclusion) We will discuss each of the four main approaches in turn. SEEA-EEA: Key Concepts

Approaches: Look-up tables Statistical approaches Geostatistical interpolation Process-based modeling Attribute values for an ecosystem service (or other measure) to every Spatial Unit in the same class (e.g., a land cover class). Example: Benefits Transfer one ha of forest = $5000  attribute to each ha of forest error rate: 60-70% In this example, we assume that the monetary value of a hectare of forest is $5,000. We attribute this value to each hectare of forest. Note that the approach has a high error rate since different locations will have different values. Lookup tables can be used for more than ecosystem values (per hectare). For example, you can attribute a carbon storage class to land cover classes. SEEA-EEA: Key Concepts

Approaches: Look-up tables Statistical approaches Geostatistical interpolation Process-based modeling Estimate ecosystem services, asset or condition based on known explanatory variables such as soils, land cover, climate, distance from a road, etc., using a statistical relation. Example: Function Transfer Value = f(land cover, population, roads, climate) Error rate = 40-50% Statistical approaches refers to using a known statistical relationship to estimate unknown values. This usually requires developing a transfer function using regression. In this example, we estimate the “value” based on land cover, population, roads and climate. This reduces the error rate somewhat, since we’re using more information than simply the land cover type. SEEA-EEA: Key Concepts

Approaches: Look-up tables Statistical approaches Geostatistical interpolation Process-based modeling Use algorithms to predict the measure of unknown locations on the basis of measures of nearby known measures: Example: Kriging Error rate = ? Known Unknown In this case, we can estimate the value for the red dot, based on the values of nearby blue dots. The error rate depends on the context and the variability of the measure we are estimating. [Example actually shows a simpler approach: Inverse Distance Weighting] SEEA-EEA: Key Concepts

Approaches: Look-up tables Statistical approaches Geostatistical interpolation Process-based modeling Predict ecosystem services based on a set of future condition or management scenarios: Example: Scenario for future services based on expected changes in land cover, demand and management Error rate = 100% Many models use a combination of approaches to estimate future conditions. For example, if land use and population are expected to change over 10 years, what are the flows of services? The error rate is high, since it is assuming future conditions, which are difficult to predict. SEEA-EEA: Key Concepts

Tools 4: Valuation techniques
This is the topic you have all been waiting for… Valuation links the Physical Accounts with the respective Monetary Accounts SEEA-EEA: Key Concepts

Level 0: Tools 4: Valuation
What? Attributing economic or social value to assets & services Ecosystem services valuation produces: Average values (per hectare, under specific conditions) Or Marginal values (change in value of converting one hectare) Asset valuation: Scenarios of future Conditions and demand  net present value of Ecosystem Asset Why? Integrate with SNA Augmented I-O, Integrated Sector Accounts and Balance Sheet Assessing trade-offs: Convert or protect? Monetary valuation is embedded in many: National plans: cost/benefit, payment & compensation schemes Research approaches: contingent valuation, choice modelling (Average or Marginal?) Marginal values are more useful, but more location-specific… To value our assets, we need a way to estimate the long-term benefits of each ecosystem. Whether or not we want to assign monetary value to them is a matter of ethical and conceptual debate. SEEA-EEA: Key Concepts

Approaches (non-market): Revealed preferences: Production function: (resource rent) value = f(ecosystem, produced capital, labour) Replacement cost: produce service with another ecosystem/asset Hedonic pricing: real-estate prices, wages with respect to distance Averting behaviour: expenditures to avoid degradation Travel cost: expenditures to enjoy a service (e.g., recreation) Stated preference: Contingent valuation, choice modelling: willingness to pay Simulated exchange values: model supply/demand Payments for ecosystem services (PES): Carbon, biodiversity markets Payments made to improve condition: Rehabilitation costs We are focussing on valuing services that are not already exchanged on the market. Crops, timber, water, etc. is often already valued at market exchange prices. There are many approaches to valuing some of the ecosystem services that are not traded on the market (clean air, flood control, recreation…). SEEA-EEA: Key Concepts

Measurement challenges More challenging for Regulating and Cultural Services How to measure monetary value of regulating services? Spatial dependencies (downstream, species/habitat) Multiple beneficiaries Risks (e.g., flood control, climate regulation) Non-linear responses Thresholds/resilience, climate change, refuge areas Aggregating values of different services Services can be competing, complementary or independent Transferring measured values from one site to another (Discussed under Biophysical Modelling & Scaling) Highly dependent on decision context Project assessment: trade-offs Long-term sustainable use of ecosystems: high-level indicators Payments and compensation: needs to have precise values Don’t need monetary valuation if there is agreement that certain ecosystems and their conditions must be conserved. Is there a demand in your country to do valuation? (in case there are questions) Regulating challenges: Spatial dependencies: beneficiaries may be downstream, species may be dependent on multiple ecosystems Multiple beneficiaries: some services benefit local, national and global beneficiaries Risks: services change risk (probability) of events Non-linear: Cannot assume marginal changes in value if ecosystems are nearer to thresholds Climate change implies big changes due to small changes in temperature Refuge areas are where local habitats can be critical to species survival Aggregating values Need to think about a “basket” of services & understand which are: Complementary: e.g., flood control & crops Competing: e.g., habitat for sensitive species & recreational Independent: e.g., viewscape & soil formation Decision context: Project assessments using same methods & assumptions may lead to reasonable assessments of trade-offs (preference) Can use EEA for extended cost/benefit, strategic environmental assessment… Long-term indicators may provide general assessment of importance & trends in biodiversity/ecosystem values National assessments could focus on future flows of services, depending on future scenarios… Payments: If money paid for PES or compensation…need to be more precise See Radermacher & Steurer (Eurostat, 2014) Do we need natural capital accounts, and if so, which ones? SEEA-EEA: Key Concepts

Tools 5: Other tools The “Other Tools” apply to the whole set of accounts: Statistical quality guidelines Interdisciplinary teams Case studies and surveys As noted in the introduction, we will not discuss all possible tools required. These are some that we think are most important to be aware of at the early stage of developing ecosystem accounts. SEEA-EEA: Key Concepts

Level 0: Tools 5: Other tools
What? Statistical quality guidelines Why? Need a common concept of quality, uncertainty and “fitness for use” How? Apply national or international guidelines UN National Quality Assurance Framework (NQAF) International Monetary Fund – Data Quality Assessment Framework (IMF-DQAF) Disciplinary “accepted methods” are less-well documented Build a culture of quality: Metadata, process documentation, strategic planning… Work within accepted statistical processes (e.g., Generic Statistical Business Processing Model – GSBPM) (Conclusion) This is not to say that every data element needs to be perfect. It is useful to know how it was obtained, processed and analysed. Many disciplines have their own “accepted methods” and these should be tested and applied… SEEA-EEA: Key Concepts

What? Interdisciplinary teams (ecology, economics, geography, policy, sociology, statistics…) Why? No single discipline can do it alone  Need a shared “language”  Need to become transdisciplinary How? Agree on common objectives and approaches Work together to avoid disciplinary “stovepipes” Engage experts, data providers, users and supporters Ecosystem accounting needs interdisciplinary teams. Concepts, methods and classifications developed may not be perfect from any one disciplinary point of view. However, they are necessary to create a shared conceptual framework and “language”. Different approaches assume different priorities for generalism, realism and precision [diagram: multi-disciplinary, interdisciplinary, transdisciplinary…] SEEA-EEA: Key Concepts

What? Case studies & surveys linking services with benefits Why? In some countries, there is a close relationship between ecosystem services and poverty, water security, food security, employment… Link ecosystem condition, services with socio-economic priorities (well-being, health, income, employment…) How? Local surveys for priority stakeholders (e.g., dependent on ecosystem services) National sample surveys (e.g., water use, importance of nature, expenditures on environmental protection…) This is the last slide on this section… Do you have any questions or comments on “Tools”? At the end of the workshop, we will have a discussion of “Implementation and the Diagnostic Tool”. This will give you an opportunity to think about which accounts and which tools are highest priority for you to start working on. SEEA-EEA: Key Concepts

Other related training materials
Secretariat for the Convention on Biological Diversity (SCBD) Quick Start Package (QSP) (Weber, 2014) Available online at Includes free GIS software and tutorials National Biodiversity Strategies and Action Plans Training modules at World Bank WAVES Statistics Canada: Measuring Ecosystem Goods and Services Teacher’s Kit That’s all for Level 0! You are now ready for Levels 1 and 2… [WBCSD…? OECD on nutrient flows (N…)] SEEA-EEA: Key Concepts

References SNA 2008 SEEA Central Framework, SEEA-EEA, Applications and Extensions SCBD Quick Start Package World Bank WAVES: Designing Pilots for Ecosystem Accounting International Monetary Fund: DQAF UN: NQAF UNECE: GSBPM Australian Bureau of Statistics, Land Account: Queensland, Experimental Estimates, 2013 Eigenraam, M., Chua, J. and HASKER, J., Environmental-Economic Accounting: Victorian Experimental Ecosystem Accounts, Version 1.0. Melbourne, Australia: Department of Sustainability and Environment, State of Victoria. Remme, Roy P., Matthias Schröter, and Lars Hein. "Developing spatial biophysical accounting for multiple ecosystem services." Ecosystem Services 10 (2014): 6-18. Statistics Canada, Human Activity and the Environment: Measuring Ecosystem Goods and Services XWE. Ottawa: Government of Canada. Weber, J., Ecosystem Natural Capital Accounts: A Quick Start Package. 77 (Technical Series). Montreal: Secretariat of the Convention on Biological Diversity. SEEA-EEA: Key Concepts

Acknowledgements Prepared by: Adapted from: Michael Bordt
Regional Adviser on Environment Statistics ESCAP Statistics Division Adapted from: Advancing Natural Capital Accounting, a collaboration between The United Nations Statistics Division (UNSD), United Nations Environment Programme (UNEP) and the Secretariat of the Convention on Biological Diversity (CBD) and is supported by the Government of Norway. Contact: SEEA-EEA: Key Concepts 104

Key Concepts (Level 0) SEEA Experimental Ecosystem Accounting

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Key Concepts (Level 0) SEEA Experimental Ecosystem Accounting

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