1. The UN System of Environmental-Economic Accounting (SEEA) and its implementation in pilot countries
Ivo Havinga
United Nations Statistics Division
Rio Conventions Pavilion Event:
Transformative Initiatives in Biodiversity Mainstreaming and Financing
16 October 2014

2. Policy Demand: International Context
Agenda 21
Rio+20 outcome document
High-Level Panel Report on the Post Development Agenda
SDGs monitoring
European legislation
Aichi targets
Natural Capital Accounting
International initiatives
OECD’s Green Growth Strategy, WAVES, VANTAGE, UNEP- led Green Economy programme, CBD, TEEB

3. Integrated multi-dimensional statistics
Demand for Integrated statistics which allow coherent understanding for integrated policy
Requires accounting approach and integrated statistical production process
Ensure quality of information and consistency between basic data, accounts and tables and indicators
Indicators
Accounts
SEEA
Basic data
Economic Environmental Social
Statistics
Policy makers and other stakeholders require a consistent and coherent understanding of the underlying drivers of sustainable development:
This implies the need for consistent and coherent data to
Monitor progress
Evaluate whether or not goals are being achieved
To achieve this, a statistical framework that can organize, integrate and reconcile data is needed
The statistical framework needs to provide data of sufficient scope, detail, quality and timeliness
Quality
 SEEA employs an accounting approach that can bring coherence and consistency across previously disparate sets of statistics and “big pictureEn” perspective. Its implementation can foster integration of the national statistical systems by reforming the silo-ed organizational structure and consolidating the statistical production process based on the internationally agreed standard information model.
 The modular approach of compiling SEEA accounts by countries on a continued, sustained basis will facilitate monitoring and international comparability, as well as a broad based, balanced and sustainable national statistical capacity building approach driven by country policy priorities 3

4. Integrated multi-dimensional statistics
Transforming sectoral data into integrated policy-relevant information
Interrelations between economy, environment and society through systems approach – SNA and SEEA
Communication and visualization of the story the statistics tell

5. SEEA: Enabler for the transformative agenda
Enable integration of biophysical data, monitoring changes in ecosystem and linking those changes to economic and human activity
SEEA -
Experimental Ecosystem
Accounting
SEEA -
Central Framework
SNA
Inform post 2015 development agenda and SDGs
Enable partnership at international, regional, sub-regional and national level.

6. SEEA Conceptual Framework
Territory of reference
Environment
Imports/Exports
Economy
Economic Units
Enterprises
Households
Government
Non-profit institutions
Instruments
-Financial/Monetary
-Taxes/subsidies
- Financing
-Resource rent
-Permits
Activities
-Production
-Consumption
-Accumulation
Outside territory of reference
Outside territory of reference
Analytical and Policy Frameworks
-Productivity analysis
-Natural resource management
-Climate change
-Green Growth/Green Economy
-Post-2015 Development Agenda
Natural inputs
Residuals (e.g., emissions, waste)
Ecosystem
services
Individual Environmental Assets (e.g., land, water, mineral and energy, soil, aquatic)
Ecosystem Assets
Transboundary Environmental Flows

7. SEEA Central Framework
Internationally agreed statistical framework to measure environment and its interactions with economy
Adopted as international statistical standard by UN Statistical Commission in 2012
Developed through inter-governmental process
Published by UN, EU, FAO, IMF, OECD, WB 7

8. The SEEA Central Framework Accounts
Flow accounts: supply and use tables for products, natural inputs and residuals (e.g. waste, wastewater) generated by economic activities.
physical (e.g. m2 of water) and/or monetary values (e.g. permits to access water, cost of wastewater treatment, etc.)
Stock accounts for environmental assets: natural resources and land
physical (e.g. fish stocks and changes in stocks) and/or monetary values (e.g. value of natural capital, depletion)
Activity / purpose accounts that explicitly identify environmental transactions already existing in the SNA.
e.g. Environmental Protection Expenditure (EPE) accounts, environmental taxes and subsidies
Combined physical and monetary accounts that bring together physical and monetary information for derivation indicators, including depletion adjusted aggregates

9. 9

10. 10

11. SEEA Experimental Ecosystem Accounting
Complements SEEA Central Framework
Integrated statistical framework for accounting for ecosystem assets and associated ecosystem services
Important first step in development of statistical framework for ecosystem accounting

12. Linking ecosystem assets and well-being through ecosystem services
Individual & societal well-being
Benefits
SNA & non-SNA
Ecosystem services
Human inputs (e.g. labour, produced assets)
Ecosystem processes
Ecosystem characteristics
Intra-ecosystem flows
Inter-ecosystem flows
ECOSYSTEM ASSET 12

13. Relationship to SEEA Central Framework
Extends range of flows related to regulatory and cultural services (production boundary) for accounting compared to SNA and SEEA CF in physical and monetary terms
Many flows from Central Framework also included in Experimental Ecosystem Accounting (e.g. flows of timber), but extension of EEA is to attribute flows to spatial areas
Some Central Framework natural input flows are excluded from Experimental Ecosystem Accounting (e.g. mineral and energy resources)

14. Approach for developing SEEA Experimental Ecosystem Accounting1
Land Cover Accounting 2
Land Use Accounting 3
Framing the Measurement of Ecosystem Conditions 4
Carbon Stock Accounting 5
Biodiversity Stock Accounting 6
Water Stock Accounting 7
Accounting for Ecosystem Services 8
Integrating Ecosystem Accounting with National Accounts

15. Spatial characteristics expressed in spatial units
The SEEA Experimental Ecosystem Accounting brings in two new dimensions:
Spatial characteristics expressed in spatial units
Integrated or holistic view of multiple characteristics for each unit
The EEA is focused on living (renewable) natural resources
Land
Water
Carbon
Biodiversity
Nutrients
Pollution
Human activities
Ecosystem services
Minimum dataset scheme
Unifying themes
Image source:

16. Spatial data perspective: harmonizing reporting units
Measurement units for social, economic and environmental parameters remain untouched
New accounting and reporting units created for ecosystem accounting purposes
Overlay of units (UK)
It is not feasible to design a single measurement unit addressing all variables needed for an ecosystem account. So there is no need to solve all measurement issues strictly but to make sure they can be read across in meaningful and well comparable way
Harmonized accounting and reporting units are linked to the grid-database, in a way matching administrative (socio-economic) units, including countries, regions etc. with natural boundaries such as catchments and biomes.
Accounts extracted as sum or mean value can be reported for either of these units or a combination of them (sometimes called ‘Socio-ecological unit’) 16

17. SEEA-EEA integration framework
Integration of ecosystem services in macroeconomic aggregates, like GDP and NDP
Clean
drinking
water
Food,
Climate
regulation
Amenity
Risks
Ecosystem services in monetary and physical terms
Biodiversity
Nutrients
Water
account
Carbon
Integration: cross-cutting approach linking all disciplines/subjects
This approach enables a comprehensive and representative conceptual view on many ecosystem components and functions / services
In practice, separate /sectoral accounts do not show some very important environmental issues, for ex. FAOSTAT’s land statistics do not report urban areas. These details still have to be added in future.
Integration is possible only when strict spatial reporting rules are applied – e.g. clear boundaries and area measure of the reporting unit
Four steps of ecosystem account estimation are shown: from input data collection from multiple sources (with gap-filling and harmonization) to final macroeconomic estimation
Land account
Consistent physical and monetary asset accounts
Forest
Crops Statistics
Vegetation
Supply/use
Water
catchmets
Land cover/use Accounting units
Administrative reg., habitats, ecoregions
Raw data collection, processing and harmonization 17

18. Hierarchical (nested-grid) aggregation
17/04/2017
Hierarchical (nested-grid) aggregation
Country
State
Region
Statistical Areas
Parcel
Grid cell (e.g. 20m x 20m or 100m x 100m)
Ecosystem Accounting Unit (EAU)
Land Cover/Ecosystem Functional Unit (LCEU)
Basic Spatial Unit (BSU)
The grid cells are key to classification and aggregation to suit the purpose; e.g. the SEEA analytical and statistical units.
SEEA 2.47: Statistical units are the entities about which information is sought and about which statistics
are ultimately compiled. It is the statistical unit that provides the basis for compilation of
statistical aggregates and to which tabulated data refer.22 In economic statistics, the statistical
units are the various establishments, enterprises, government and household entities about
which economic data are collected. Generically these are referred to as economic units.23
Economic units may be grouped for analytical purposes into industries (units undertaking
similar economic activities) and institutional sectors (units with similar types of legal basis
and behaviours).
SEEA 2.48: The statistical units of ecosystem accounting are spatial areas about which information is
collected and statistics are compiled. Such information is collected at a variety of scales using
a number of different methods. Examples of methods include remote sensing, on ground
assessment, surveys of land owners and administrative data.
SEEA 2.52: A basic spatial unit (BSU) is a small spatial area. Ideally, BSU should be formed by
delineating tessellations (small areas e.g. 1 km2), typically by overlaying a grid on a map of
the relevant territory, but they may also be land parcels delineated by a cadastre24 or using
remote sensing pixels. Grid squares, ideally each one being a BSU, are delineated to be as
small as possible given available information and landscape diversity. The model can also accommodate different scale grids through spatial nesting (e.g. a 100 m2 grid nested within 1 km2 grid). It is particularly advantageous for each BSU to refer to the same spatial area over
time.
SEEA 2.56: The second type of unit is the land cover/ecosystem functional unit (LCEU). For most
terrestrial areas an LCEU is defined by areas satisfying a pre-determined set of factors relating
to the characteristics of an ecosystem. Examples of these factors include land cover type,
water resources, climate, altitude, and soil type. A particular feature is that an LCEU should
be able to be consistently differentiated from neighbouring LCEU based on differences in
their ecosystem characteristics.
SEEA 2.64: The delineation of an EAU is based on the purpose of analysis and should therefore take into
consideration administrative boundaries, environmental management areas, large scale natural
features (e.g. river basins) and other factors relevant to defining areas relevant for reporting
purposes (e.g. national parks or other protected areas). Overall, EAU should be relatively large
areas about which there is interest in understanding and managing change over time.
Consequently, EAU should be fixed or largely stable spatial areas over time and, for
accounting purposes, may be considered ecosystem assets.

19. 17/04/2017
The key to handling various spatial and temporal scales because it is grid-based.
The grid cells can be “classified” and aggregated in a manner that fits the purpose.
Geography
Building analytical capability for units and ensure that GIS standards are maintained
Accounting
e.g. unified and hierarchical classifications and variables for units (grid)

20. Asset accounts on carbon:
Theme unifying a number of components, processes and data sets:
GPP
TER
Statistical data on:
Forest biomass (FRA, 2000, 2005, 2010)
Crops harvest (EUROSTAT 2000 – 2010)
Timber harvest (EUROSTAT 2000 – 2010)
Livestock (EUROSTAT 2000 – 2010)
Remote sensing products:
Land cover (CORINE LC 2000, 2006)
Vegetation (SPOT vegetation NDVI 1999 – 2010)
Primary production (GPP) and Ecosystem respiration (TER), (NASA, 2000 – 2010)
Modelled data:
1. Soil organic carbon (Global map, JRC (Hiederer and Köchy, 2012)
Exports
Imports
The carbon account include estimates of opening stock (formed by forest biomass and soil organic carbon) and annual flows. The flows address:
vertical carbon transfers: the main ones are downward flux of primary production (or carbon sequestration) and upward flux of carbon reliese (or ecosystem respiration);
lateral carbon fluxes: the main ones are carbon exports (through harvest of crops, timber, fibre and animal products) and carbon imports (including seed and manure in the fields)
Ecosystem carbon accounts were estimated for the EU countries by combining data from:
remote-sensing products: on rates of carbon sequestration (GPP – Gross primary production) and carbon release (TER terrestrial ecosystem respiration)
Downscaled national statistics: on forest stocks, crops, timber harvests and livestock
Remote sensing products, including land cover (the European CORINE) and vegetation indices indicating productivity (NDVI – Normalized Difference Vegetation Index) were used to spatially allocate (or disaggregate) the national statistics on grid of 1km x 1km
From the grid accounts could be extracted for various reporting units (countries, watersheds, protected areas etc)
Source: European Environment Agency and ETC-SIA

21. European carbon accounts
The two basic balancing items are designed to summarize ‘vertical’ and ‘horizontal’ carbon transfers
Net ecosystem production = Gross Primary Production – Terrestrial Ecosystem Respiration
Balance of lateral imports and exports
= Carbon returns – carbon ‘uses’
61 parameters were mapped to produce carbon accounts in the EU countries, following CBD-ENCA ‘Quick-start package’
The main parameters were evaluated against independent reference data to assess their quality and test them for estimating consistent carbon accounts.
The two basic balancing items are designed to summarize ‘vertical’ and ‘horizontal’ carbon transfers

22. Examples: Net ecosystem carbon balance
On country level the ecosystem carbon accounts should be consistent with IPCC’s in assessing whether ecosystems acted as net source or sink of CO2 for a given period of time.
The maps shows a decade average, with areas in green indicating prevailing sink (most of Europe) and in red – prevailing source functions (e.g. parts of North West Europe, Po valley in Italy, and spots of forest-burned areas of Portugal).
The carbon balance shows which ecosystems and where performed as carbon source or sink (of major importance to climate change mitigation policies)
The ecosystem (spatial) perspective adds complementary information relevant to ecosystem management:
for example in forestry: optimizing timber extraction while maintaining carbon sequestration and water regulation

23. Advancing SEEA- Experimental Ecosystem Accounting in pilot countries
List of pilot countries (7 countries)
Non-exhaustive list of potential associate country pilots
Countries
Africa: South Africa, Mauritius
Asia: Indonesia, Vietnam, Bhutan
Latin America: Mexico, Chile
Australia
Canada
Ecuador
Netherlands
Norway
Peru (project managed by Conservation International
Philippines (through WAVES)
Colombia (through WAVES)
United Kingdom
United States

24. Project activities – Advancing SEEA-EEA
Norwegian funded and joint collaboration between UNSD-UNEP- CBD
Country missions
Regional workshops: will gather and exchange experiences from the country pilots and other initiatives
Forum of experts: contacts of people involved in ecosystem accounting at national level and other (related) initiatives
Knowledge base: will include data and materials generated in the course of guidelines development and country missions
Research agenda: addressing challenging issues (for ex. mainstreamed classification of ecosystem services)
Guidance and training material
Global strategy for SEEA EEA

25. Management and governance
Recognize multi-agency requirements and harnessing existing knowledge
Technical committee under the auspices of the UNCEEA responsible for:
Coordinate and advance the research agenda on the basis of lessons learnt from testing with the objective of developing best practices and in the longer term mainstreaming

26. Short term priorities Spatial units
Scaling and aggregation methods
Methods for measuring ecosystem services and assets
Classification of services and link to ecosystem condition
Presentation and accounting structure
Dissemination, including visualisations
Linking to socio-economic data
Integration of scales
Valuation of ecosystem services

27. Medium to long term priorities
Accounting concepts
Degradation – valuation and allocation
Integration of ecosystem values into standard accounts and balance sheets (links to wealth a/c)
Treatment of expenditures on ecosystems
Connections between ecosystem services and ecosystem condition
Often seen as competing approaches
SEEA EEA sees clear links but they are complex and non-linear
Aggregation and ecosystem-wide indicators
Most challenging aspect: needs to build and combine all other research and testing work

28. Building on existing initiatives
SEEA and WAVES
WAVES uses as entry point the Ministries of Planning or Ministries of Finance – focus on institutional arrangements and policy applications
SEEA – UNSD uses the NSOs as entry points and has as objective to assist countries in developing an integrated statistical system to support the implementation of the SEEA

29. SEEA and TEEB
TEEB focuses on answer specific policy questions in specific geographical areas
Objective is to raise awareness of the issues through using valuation
Broad ranges of types of projects
Working with SEEA with UNSD taking the lead in supporting countries in the SEEA implementation in the countries of the project

30. SEEA and BIOFIN
BIOFIN has the objective of bringing together different stakeholders and make an assessment of the financing for biodiversity (e.g. financial gaps, etc.)
Developing a taxonomy on biodiversity expenditures, taxes, subsidies
SEEA – UNSD is working with BIOFIN to align the taxonomy with the standard classifications of environmental activities

31. SEEA CF Accounts
Ecosystem Accounts
Accounts for environmental activities and transaction

32. SEEA and CBD
Aichi Target 2 is about mainstreaming biodiversity into national accounts
SEEA has been recognized as the statistical framework for measuring and monitoring ecosystems and biodiversity into an accounting approach
CBD partner in the project

33. SEEA and Green economy initiatives
OECD recognized the SEEA as the statistical framework for green growth indicators
SEEA informs many of the green economy policies
SEEA working in Mauritius with PAGE (Programe of Action for Green Economy)

34. National and international communities must join hands in advancing the work!34