1. AN ECOSYSTEM APPROACH TO SEEA LONDON GROUP MEETING ROME, DECEMBER 2007 Session 9 on ecosystem accounts
Jean-Louis Weber European Environment Agency
LONDON GROUP MEETING ROME, DECEMBER 2007

2. Outline Developing the ecosystem approach into the SEEA
Framework of ecosystem natural capital accounts
Classification of stocks and flows of land cover
Classification of ecosystem services
Measurement and valuation of ecosystem services
Measurement and valuation of maintenance and restoration costs
Integration into SEEA: MFA, PIOT, NAMEA, Expenditure, Assets (Forest, Fisheries, Water and forthcoming soil), valuation, application of E-EA.
Articulation to SNA (adjustment of net savings, inclusive gross domestic product, full cost of goods and services)
Implementation strategy
LONDON GROUP MEETING ROME, DECEMBER 2007

3. Developing the ecosystem approach into the SEEA Current situation
SEEA2003 fully integrated with SNA but
relations to nature are scattered between chapters and unevenly developed.
Ecosystems assets are indeed part of SEEA 2003 structure: forest, water, land and ecosystem accounts, soil (p.m.), fisheries but
few links exist between these assets, considered more as inventories than systems.
“ecosystem service” is not a well identified concept
Flows between the economic system and the ecosystems are asymmetric, balancing the economic system (backed up by SNA) with a mere interface ( “environment” column, “ecosystem inputs”)
No place for feedbacks
Unclear measurement of the value of nature
LONDON GROUP MEETING ROME, DECEMBER 2007

4. Developing the ecosystem approach into the SEEA Improve integration
Recognize first the interaction of 2 co-evolving systems
Clarify the concept of natural capital by separating non-renewable resources (where the rent and its reinvestment is the interest) from renewable resource (for which the conservation of critical level of stocks in good functioning state is main issue).
Full integration vs. dual integration
Renew approach of valuation with clear distinction of values, costs and their role in decision processes
LONDON GROUP MEETING ROME, DECEMBER 2007

5. Developing the ecosystem approach into the SEEA Flows from ecosystem to economic system
Is this harvesting/extraction
sustainable ?
Harvesting/extraction
Economy
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
LONDON GROUP MEETING ROME, DECEMBER 2007

6. Sustainable flows from ecosystem to economic system
Ecoproduct (of cycling and reproductive systems/ capital) are produced by means of other ecoproducts. The ecosystem production function includes a surplus ecoproduct that can be used by the economy. (from Anthony Friend 2004)
Basic eco-product
Non-basic eco-product
Surplus available for harvesting/extraction
Economy
Necessary for ecosystem reproduction (conservation of ecosystem health, integrity, functions & services)
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
LONDON GROUP MEETING ROME, DECEMBER 2007

7. Non-basic eco-product
Developing the ecosystem approach into the SEEA Interaction of 2 co-evolving systems
Trade-off = increased yields against losses of natural functions and biodiversity
Possible compensation = artificial input (irrigation, energy, fertilizers, infrastructures…)
Basic eco-product
Non-basic eco-product
Surplus available for harvesting/extraction
Non-sustainable
harvesting/extraction
Economy
Necessary for ecosystem reproduction (conservation of ecosystem health, integrity, functions & services)
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
LONDON GROUP MEETING ROME, DECEMBER 2007

8. Developing the ecosystem approach into the SEEA Full integration vs
Developing the ecosystem approach into the SEEA Full integration vs. partial or dual integration
Full integration of socio-economic and ecological systems as socio-ecosystems, respecting the properties of both (such as the general equilibrium of prices and quantities for the economic system, the resilience for the ecosystem or the metabolism of the two): Inclusive Wealth, Enlarged Material Energy Flow (metabolism) Accounts
Partial or dual integration doesn’t contradict the concepts of inclusive wealth or metabolism; it refers to them as a theoretical background guidance instead; short term step forward
LONDON GROUP MEETING ROME, DECEMBER 2007

9. Developing the ecosystem approach into the SEEA Dual integration: 4 main questions
is the renewable natural capital maintained over time at the amount and quality expected by the society?  physical measurement of “quantityquality” in reference to stated social norms
is the full cost of maintaining the natural capital covered by the price of goods and services?  measurement of costs not currently covered for maintaining and restoring domestic ecosystems (provision for depreciation) and addition to value of goods and services
is the full cost of ecosystems services covered by import prices?  calculation and addition to value of goods and services
is the total of goods and services supplied to final uses by the market (and government institutions) and for free by ecosystems, developing over time?  measure and value free end use services and add these benefits to GDP
LONDON GROUP MEETING ROME, DECEMBER 2007

10. Accounting for environmental benefits and costs
Benefits: the Demand side
FCGS
GDP Final Use of Ecosystem Services = IDP € €
Final Services
IDP
Inclusive Domestic Product +
(Intermediate consumption)
Additional maintenance cost of the resource
Costs of restoration from ecosystem degradation
Full ecosystem cost of imports
Ecosystem Services
Stocks & flows (quantities)
Resilience/Health (qualities)
Costs: the Supply side
Costs €
Ecosystem Assets
Full Cost of Goods & Services
LONDON GROUP MEETING ROME, DECEMBER 2007

11. Framework of Ecosystem Accounts
Spatial integration
Economic sectors
Accounts of flows of ecosystem goods and services
Core accounts of assets & flows
(by ecosystem types, raw quantities)
Material/energy flows
(biomass, water, nutrients, residuals)
Ecosystem Services
Marketed Ecosystem Services (€)
Non-market end use ES (physical units, €)
Supply & use of ecosystem goods and services
(Use of resource by sectors, supply to consumption & residuals, accumulation, I-O analysis, NAMEA)
Counts of stocks diversity / integrity
(by ecosystem types, focus on state, health, resilience, stress)
Ecosystem types
Natural capital
Natural capital stocks, resilience & wealth, distance to objective (physical units, by sectors)
Natural capital consumption/maintenance costs (€)
Ecosystem assets inclusive wealth (€)
Ecosystem Stocks & State Accounts
Natural Capital Accounts/ living & cycling natural capital
Economic integration
LONDON GROUP MEETING ROME, DECEMBER 2007

12. Framework of Ecosystem Accounts€
Framework of Ecosystem Accounts €
Spatial integration
Economic sectors
Accounts of flows of ecosystem goods and services
Core accounts of assets & flows
(by ecosystem types, raw quantities)
Material/energy flows
(biomass, water, nutrients, residuals)
Ecosystem Services
Marketed Ecosystem Services (€)
Non-market end use ES (physical units, €)
Supply & use of ecosystem goods and services
(Use of resource by sectors, supply to consumption & residuals, accumulation, I-O analysis, NAMEA)
Counts of stocks diversity / integrity
(by ecosystem types, focus on state, health, resilience, stress)
Ecosystem types
Natural capital
Natural capital stocks, resilience & wealth, distance to objective (physical units, by sectors)
Natural capital consumption/maintenance costs (€)
Ecosystem assets inclusive wealth (€) €
Ecosystem Stocks & State Accounts €
Natural Capital Accounts/ living & cycling natural capital
Economic integration
LONDON GROUP MEETING ROME, DECEMBER 2007

13.  Basic ecosystem stock flows accounts
Stocks & flows
Spatial systems:
Land cover (units, zones, landscape types)
Rivers, river reaches, catchments
Coastal systems
Soil
Biomass (NPP/NEP), Carbon
Nutrients (N,P…)
Water
Species
Other…
 Basic ecosystem stock flows accounts
LONDON GROUP MEETING ROME, DECEMBER 2007

14. LEAC/Land cover accounts’ basic framing
LONDON GROUP MEETING ROME, DECEMBER 2007

15. LEAC: from changes to flows of land cover
2000
LCF3
LCF1
LCF2
LCF5
LCF4
LCF7
LCF6
LCF8
Change Matrix
(44x43=1932 possible changes)
summarized into flows
LCF9
1990
LONDON GROUP MEETING ROME, DECEMBER 2007

16. From Land cover to ecosystem at macro scale: Net Landscape Ecological Potential 2000, 1 km² grid
NLEP =
(Vegetation+Nature Value)
Fragmentation
Source: EEA/ETCLUSI from GBLI, NATURILIS and MEFF
Methodology: EEA/ETCLUSI
LONDON GROUP MEETING ROME, DECEMBER 2007

17. Net Landscape Ecological Potential 2000, aggregated by regions
Source: EEA/ETCLUSI from GBLI/CLC, NATURILIS and MEFF
Methodology: EEA/ETCLUSI
LONDON GROUP MEETING ROME, DECEMBER 2007

18. Change 1990-2000 in Net Landscape Ecological Potential (NLEP), 1 km² grid
Source: EEA/ETCLUSI from GBLI, NATURILIS and MEFF
Methodology: EEA/ETCLUSI
LONDON GROUP MEETING ROME, DECEMBER 2007

19. Ecosystem health: counts of health/resilience
Ecosystem Distress Syndrome model: 5 types of symptoms
Vigor: e.g. disruptions of nutrients cycling, population dynamics (loss or excess)
Organisation, degradation of substrates: e.g. fragmentation, water stress, change in food chain
Resilience: e.g. change in species composition (invasive…), intoxication
Dependence of systems from artificial input: e.g energy, water, subsidies
Capacity of supporting healthy communities: wildlife, human
Source: David J. Rapport
LONDON GROUP MEETING ROME, DECEMBER 2007

20. Ecosystems services Services Nomenclature of ES
Capital stocks and functions
Market values
Internal habitat functions
Land use functions
Ecosystem Services
Market input
Final use of non market ES
Provisioning x
Cultural
Regulating
Support
Ecosystem functioning
Physical measurement and shadow prices
LONDON GROUP MEETING ROME, DECEMBER 2007

21. Land Use Functions & Ecosystem Services
LUF analysis and mapping
address cross-cutting issues e.g.: Urban/Rural, Agro/Environment
detect & measure ES services = ecosystem functions which benefit to people, somewhere
LONDON GROUP MEETING ROME, DECEMBER 2007

22. Challenges for implementation
Classification and measurement
Geographical scales
The issue is to play with heterogeneous datasets:
Exhaustive but rather contents-poor geographic datasets, frequently updated by satellite images
Exhaustive, contents-rich but rather poorly geographically detailed socio-economic statistics
Scattered in situ monitoring of the physical world
Detailed analysis and modelling of the socio-ecosystems and valuation of ecosystem services available as case studies
Time scales
Time series
Nowcasting
Infra-annual accounts when relevant
Ecological “surprises”
LONDON GROUP MEETING ROME, DECEMBER 2007

23. Work sharing for a fast track implementation/ National level
Process management: not simply compilation but learning by doing as well
Ongoing processes:
“beyond GDP” type demands
Evaluation of policies, compensatory measures, taxes
Ecosystem assessments in preparation
Statistical coordination:
Statistical offices & science
Statistical offices & mapping agencies
Statistical offices & environment agencies
LONDON GROUP MEETING ROME, DECEMBER 2007

24. Work sharing for a fast track implementation/ International level
UN agencies, WB, IMF, OECD (…?)
MA2 context (e.g. WCMC/UNEP: manual on ES currently drafted)
GEO/GEOSS (GMES…) (support regional global monitoring)
International conventions (CBD, IPCC, IGBP, HDP, Ramsar, Desertification… )
Regional regulations, agreements, conventions
Key NGOs in the domain (IUCN, WWF, ISEE)
UNEP-IPES, UNEP-FI
London group/subgroup + Eurostat + EEA & scientific expert panel: issue paper, outline by end 2008
LONDON GROUP MEETING ROME, DECEMBER 2007

25. Addressing ecosystem issues & SEEA recognition
Forthcoming MA2 (2015) launched by UNEP will include ecosystem services accounts: will it be SEEA?
Correlated regional projects like Eureca!2012 for Europe, and national assessments: ecosystem accounting part of the assessment
“Beyond GDP” developments
Assessment of benefits provided by biodiversity demanded by the G8+5 in Potsdam, March 2007 as an input to the Convention on Biological Diversity (CBD)
Ecosystem and carbon accounting, continuation of the “Stern report”
As well demands by business (e.g. UNEP Financial Initiative) – can we help?
LONDON GROUP MEETING ROME, DECEMBER 2007

26. Thanks!
LONDON GROUP MEETING ROME, DECEMBER 2007

27. LONDON GROUP MEETING ROME, 17-19 DECEMBER 2007

28. Ecosystems and services
LONDON GROUP MEETING ROME, DECEMBER 2007

29. Spatial integration of ecosystem accounts
Production &
Consumption
Economic
Assets
Population
Infrastructures
& Technologies
Soil
Flora & Fauna
Water system
Atmosphere/
Climate
Inclusive use of market & non market ecosystem services
Ecosystem
services
Ecosystem
assets
Land use
economic & social
functions
Stocks
Material & energy flows
Resilience
Intensity of use & full maintenance costs
ECOSYSTEM ACCOUNTS
CORE LAND COVER ACCOUNT
LONDON GROUP MEETING ROME, DECEMBER 2007

30. Integrated National Accounts: GDP, Ecosystem Services & Assets, Monetary & Physical Indicators
Final Use of
Non-Market
Ecosystem
Services
LEP
(Landscape net
Ecological Potential)
HANPP
(Human appropriation of the net primary productivity)
Ecosystem services
(provisioning, regulating
and socio-cultural services – supply & use)
Ecosystem Assets/ Natural Capital
(stocks, material & energy flows, health/resilience –
land, water, biomass, biodiversity…)
Ecosystem Accounts
MFA/
(Material /
energy
flow accounts)
GDP
Full ecosystem costs of domestic products
Land and ecosystem accounts constitute a broad multipurpose platform.
Ecosystem accounts are the basis for measuring and valuing ecosystem services and ecosystem maintenance costs. Services and costs connect the economic and natural realms.
The physical indicators candidate for the “basket” deliver messages by combining observations on land use, material flows of biomass, fossil resource… with specific statistics.
For consistency and comparability reasons as well as for costs and efficiency consideration, the production of physical indicators should be based on the common platform. EF
(Ecological
Footprint)
Full ecosystem cost of imports
LONDON GROUP MEETING ROME, DECEMBER 2007