1. SEEA 2003: chapter 5 Accounting for economic activities and products related to the environment and chapter 6 Accounting for other environmentally related transactions Presentation for the LG 17-19 December, Rome Nancy Steinbach, Viveka Palm SCB Ute Roewer Eurostat

2. Headlines Introduction 1. Environmental taxes 2. Environmentally related subsidies 3. Investment grants 4. Permits 5. Natural resource management expenditure accounts 6. Environmental goods and services sector

3. Introduction Decision process UNCEEA in NY August 2005 London Group meeting in NY June 2006 London Group meeting in Johannesburg March 2007 Issue paper written and disseminated to the 12th LG meeting in Rome December 2007

4. Issue paper - comments Denmark: Input on the aspect of emission trading permits and ideas on analysis Italy: A proposal for a new classification on natural resource management expenditure. Input to the work on environmental goods and services sector and subsidies Slovenia: Input to the topic on environmental protection expenditure related to current text in SEEA. EEA: Discussion on VAT, public service obligations (PSO), resource taxes etc in relation to taxes, subsidies and permits

5. 6 areas of discussion 1.Environmental taxes Are broadly described in SEEA 2003. OECD and Eurostat tested a definition of environmental taxes that was adopted in 2001 2.+3. Subsidies and investment grants:. Subsidies are not yet dealt with both in terms of environmental subsidies and those that might harm the environment 4. Permits to access the resources and emission permits: Setting the SEEA standard. 5. Classification of natural resource management accounts: Istat has developed a proposal 6. Environmental goods and services industry: Clarification text on state of the art.

6. Taxes are dealt with in chapter 6, part B. Issues: To clarify the definition of a tax, the coverage and describe borderline cases. Proposal: Use the existing OECD/Eurostat definition on an environmental tax Clarify the relation to the OECD/EEA database Describe borderline cases between the two sources. Environmental taxes

7. Subsidies are dealt with in chapter 5 and 6 Issues: The SEEA presents EPEA type subsidies (environmentally motivated) Income/capital accounts by environmental subsidies and non- environmental subsidies. Investment grants should be included New initiative: Identify fossil fuel subsidies and similar non-environmental subsidies. Proposal: Harmonise into one chapter dealing with environmentally related subsidies including investment grants. Clarify definitions Environmental related subsidies and investment grants

8. Property rights and permits Property rights are dealt with in chapter 6. Issues: Not identified Proposal: no changes needed Emission trading permits (eg. Carbon trading rights): Issues: Setting the SEEA standard. Proposal: Do not limit permits to the alternative taxes or assets. Reflect on environmental issues specific to the SEEA.

9. Natural resource management expenditure are dealt with in chapter 5 Issue: SEEA 2003 describes briefly natural resource management and exploitation activities. Classification is missing Proposal: Long term development for inclusion in best practises Initiative from Istat on new classification Natural resource management accounts

10. Environment industry is dealt with in chapter 5 Issues: SEEA 2003 briefly describes The environment industry. Proposal: Update the chapter on current state of art. Environmental goods and services sector

11. Summary Proposal taxes: Use the existing OECD/Eurostat definition Clarify the relation to the OECD/EEA database Proposal subsidies and grants: Harmonise into one chapter including investment grants. Clarify definitions Proposal property rights and permits: Do not limit permits to the alternative taxes or assets. Reflect on environmental issues specific to the SEEA. Proposal natural resource management expenditure: Long term development for inclusion in best practises Initiative from Istat on new classification Proposal environmental goods and services sector: Update the chapter on current state of art.