1. LUCAS Task Force 30 September 2015 Item 4 – Update on the Knowledge Innovation Project on Accounting for Natural Capital and ecosystem services (KIP INCA) in the EU
Eurostat

2. Outline What is the idea behind INCA?
The structure of the INCA project

3. Policy context for INCA
EU Biodiversity Strategy:
Integrate natural capital into accounting and reporting systems (valuation)
EU 7th Environmental Action Programme:
Objective 1: 'protect, conserve and enhance the European Union’s natural capital'
Objective 5: build environmental knowledge base
Environment Knowledge Community at EU level to support knowledge base -> EU project on natural capital and ecosystem services

4. What do we need for the accounting of ecosystems in the EU?
We need biophysical accounts
for direct use
as a basis for valuation studies, upscaling
We need an EU data layer of accounts
reference frame for countries
data foundation for responding to EU policies
Knowledge Innovation Project on ‘accounting for natural capital and ecosystem services’
We need a stepwise approach towards a common methodology

5. The starting point
Many different & separate & expensive data collections but not really tailored towards mapping and assessing ecosystems
LUCAS (ground observation)
Biodiversity monitoring
COPERNICUS (satellite images)
Corine Land Cover
Forest statistics
Farm Structure Survey (agricultural census)
Natura 2000 data
Et cetera

6. Working assumptions
A lot of data are available but not immediately fit for purpose.
Issues are harmonisation, scale and scope, reference dates.
Member States information is currently not always available, and it would take too long to create.

7. What is the idea behind INCA?
The EU needs a data platform to describe the extent, condition, and trends in ecosystems and their services.
INCA will use and integrate all available EU wide data collections (LUCAS, Copernicus, MAES, environmental reporting).
INCA will also propose changes to existing data to meet accounting requirements (-> permanent improvement).
Models will be used to transfer data into accounts and fill data gaps
INCA accounts should be integrated with other accounting systems such as SEEA and NSA -> INCA to respect UN standards
Member States should be able to link their national systems into INCA.

8. The INCA approach Methodology SEEA-EEA for the methodology
MAES as a conceptual framework and data source
SEEA and NSA for accounting standards
Approach
EU wide data
Experiments, modelling and iterations
Over time better adjustment of existing data to ecosystem accounting requirements

9. Structure of the INCA project
Project owner is the Environment Knowledge Community EKC
EKC is an EU inter-services group involving key environmental data users and providers, i.e. DG ENV, DG CLIMA, DG JRC, DG ESTAT, DG RTD and EEA to strengthen the knowledge base for the 7th EAP.
Knowledge Innovation Projects KIPs have the ambition to close gaps in environmental knowledge adopting an innovate approach.

10. INCA partners (Eurostat, ENV, EEA, JRC, RTD)
Experience with geospatial-statistical data integration
Operates LUCAS
Lead service for geospatial information in the Commission
Statistics on land use/ land cover, forest, agriculture
Environmental-Economic Accounts (SEEA)
Leads phase 1
DG Environment
Provides the policy context and will be one of the prime users
Responsible for MAES

11. EEA
Principal information provider on the state of the environment in Europe
Long term experience in ecosystem accounting, involved in MAES
Operates data centres on water and biodiversity
Responsible for CORINE land cover and Copernicus data
Will be the main data processing partner
JRC
Operates data centres on forest and soil and information systems on agriculture, ecosystems and water
Vast modelling experience on ecosystem services
RTD
Runs research programs on ecosystem services and biodiversity, e.g. the recently launched ESMERALDA
Will ensure coordination between INCA and research activities

12. Timing Two phases: Phase 1 further broken down into
Phase 1: Feasibility and design phase (mid 2015 – mid 2016)
Phase 2: Implementation phase (2016 – 2020)
Phase 1 further broken down into
A: Review and design (June 2015 – Dec 2015)
B: Initial planning and stakeholder engagement (Oct 2015 – Mar 2016)
C: Prepare project implementation (Jan 2016 – April 2016)

13. Tasks of Phase 1 Data System design
Review existing and planned EU wide data collections
Test the integration of these data sources
Propose changes to existing data collections and models
Define minimum data quality standards (e.g. scale and scope)
System design
Test modelling approaches
Understanding the uncertainties incl. error propagation, reducing complexity
Design a prototype system of (physical) ecosystem accounts in line with UN standards
Make a plan for an integrated accounting system, to be presented to the EKC for approval for the implementation phase from 2016 until 2020
Secure the necessary resources from all stakeholders

14. Where are we now?
External expertise through consultant (Wageningen University)
First set of deliverables on policy relevance and data sources in draft
Workshop in EEA to take stock, discuss already available accounts and how they can be fitted together
Member States workshop is planned for December 2015 (at the MAES delivery workshop)

15. What do we want to achieve by the end of phase 1?
A blueprint for the future INCA including its limits
A dialogue with Member States, researchers, policy makers, other users … (MAES delivery workshop in December 2015)
A reliable estimate of the necessary resources
A implementation plan until 2020
A plan for improving the data sources