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 26-30 March, Johanesburg Nancy Steinbach, Viveka Palm SCB Julio Cabeça Eurostat

2. Introduction and history Classification of natural resource management accounts Headlines 4 areas of discussion Environmental taxes and subsidies Permits to access the resources and emission permits Environmental goods and services sector

3. Introduction Decision process UNCEEA in NY August 2005 London Group meeting in NY June 2006 Ideas for chapter 5 and 6 of the SEEA 2003: The chapters cover related issues Most issues are well described Minor issues needs clarification (taxes, subsidies, permits) Some issues need further work (environmental sector, natural resource management expenditure ) Make two chapters into one.

4. 4 areas of discussion 1.Environmental taxes and subsidies: Are broadly described in SEEA 2003. OECD and Eurostat tested a definition of environmental taxes that was adopted in 2001. Subsidies are not yet dealt with. 2.Permits to access the resources and emission permits: Permits within the national accounts and balance of payments are open for debate at the moment with the current SNA revision. 3.Classification of natural resource management accounts: The area has of yet not a classification. 4.Environmental goods and services industry: Not well described in the SEEA 2003. CA and Europe are currently working actively within this field.

5. Taxes are dealt with in chapter 6, part B. Proposal: No changes needed in part B. Subsidies are dealt with in chapter 5 and 6 depending on the framework it is related to. The SEEA presents EPEA type subsidies Income/capital accounts by environmental subsidies and non-environmental subsidies. Proposal: Harmonise into one sub-chapter dealing with environmentally related subsidies. Environmental taxes and subsidies

6. Property rights and permits Property rights are dealt with in chapter 6. Proposal: no changes needed Emission trading permits (eg. Carbon trading rights): Especially the issue of carbon trading rights needs some further discussion. The SNA revision is currently discussing the area. No final decision is taken, however they recommend to follow SEEA 2003 (non- financial, non-produced asset). Proposal: Keep up-dated with SNA revision and adjust text accordingly.

7. Classification of natural resource management accounts SEEA 2003 describes briefly natural resource management and exploitation activities. Proposal: long term development and should not be included in the revised SEEA. Eurostats TF on government and specialised producers EPE recommends the WG on Environmental expenditure statistics to take up the work on natural resource management accounts.

8. SEEA 2003 is in chapter 5 part 4 briefly describing The environment industry. Canada and Europe is working extensively on this topic at the moment. Proposal: long term development and should not be included in the revised SEEA. Eurostat is currently developing a compilation guide with the help of a Task Force. Publishing date foreseen next year (third quarter 2008). Environmental goods and services sector

9. Summary Chapter 5 and 6 cover related issues. Main texts are well written and most areas well established. Harmonise chapter 5 and 6 into one chapter Some discussions needed for subsidies, permits and licences. Long term issues not to be resolved within time frame: natural resource managment and environmental goods and services sector.