Transcript Hanoi_CIEM_Presentation_jlweber_2 - Eionet Projects

CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT
Project " Green GDP Index: Research for Methodology Framework Development"
Training on
“Green” national accounting:
development of environmental-economic accounts at the international level
Monday 27 February 2012
Venue: CIEM, 68 Phan Dinh Phung - Hanoi, Vietnam
Session 2:
The SEEA revision; main features of the volume1 (SNA extension)
Jean-Louis Weber
Special Adviser on Economic Environmental Accounting
European Environment Agency
[email protected]
Several slides kindly supplied by Ricardo Martinez-Lagunes (UNSD, SEEA Water)
have been used for this presentation
2.2
Historical background of the SEEA (1)
• Early works on environmental accounting: Henry Peskin, Robert Repetto (World
Resource Institute), Salah El Serafy (World Bank), Roofie Hueting (The
Netherlands statistical office), Anthony Friend and David Rapport (Statistics
Canada), The Inter-ministerial Committee on Natural Patrimony Accounting
(CICPN, France), Jose Manuel Naredo (CICPN, Spain), Per Arild Ganarjordet
(Statistics Norway), Eurostat, OECD…
• 1992, UN Conference on Environment and Development (the Rio “Earth
Summit”), Agenda 21 (UN 1992): recommendations recommended that
countries implement environmental-economic accounts at the earliest date.
• In response, the United Nations Statistical Division (UNSD) published the
handbook of national accounting – Integrated Environmental and Economic
Accounting (UN 1993), commonly referred to as the SEEA. This handbook was
issued as an “interim” version of work in progress since the discussion of
relevant concepts and methods had not come to a final conclusion. Limited
number of pilot applications of the SEEA 1993.
• In parallel, several developing and developed countries continued experimenting
on the compilation of environmental and economic accounts.
Jean-Louis Weber, 27 February 2012
2.3
Historical background of the SEEA (2)
• In 1994, initiative by Statistics Canada, Eurostat and the Office of National
Statistics of the UK to create a forum for practitioners to share their experiences
on developing and implementing environmental-economic accounts: the London
Group, placed under the auspices of the United Nations Statistical Commission
(UNSC) .
• In 1998, at its meeting in Fontevraud, France, the London Group decides of the
revision of the SEEA 1993 in order to take stock of the ongoing developments
and put in common knowledge on the best practices.
• 2003: interim publication of a revised SEEA under the stamps of United Nations,
OECD, IMF, the World Bank and the European Commission.
• 2005: Decisions of the United Nations Statistical Commission (UNSC) to create
the UN Committee of experts on Environmental and Economic Accounting
(UNCEEA)
• 2007: UNSC decision to elevate the System of Environmental-Economic Accounts
(SEEA) to an international statistical standard.
• 2007-2011: revision of the SEEA under the steering of an editorial board and the
advice of the London Group.
Jean-Louis Weber, 27 February 2012
2.4
Historical background of the SEEA (3)
• In a first step, only those methodologies for which sufficient consensus and
experience exist will be part of the statistical standard; they will be presented in
the SEEA Volume 1. The Volume 1 will be accompanied by two related parts:
SEEA Experimental Ecosystem Accounts, and SEEA Extensions and Applications.
• In parallel, continuous developments of environmental accounting:
– in Europe, development steered by Eurostat (adoption of a European Strategy for
Environmental Accounting (ESEA) in 2003 and a EU-wide statistical Regulation on
environmental accounting in 2011, which covers as its first 3 areas air emissions,
environmental taxes and material flows and will be expanded to forests and
ecosystem services). Land and Ecosystem Accounts developed by the European
Environment Agency (as part of ESEA)
– Material Flow Accounts (Wuppertal Institute of Germany, National Institute of
Environmental Studies of Japan, OECD and Eurostat, many countries…)
– Many national activities (Australia, Canada, India, China, Russia, Colombia…)
– 2006: publication of the SEEA Water and series of international tests
• Decision of the UNCEEA to devote the SEEA volume 2 to experimental ecosystem
accounts and start its drafting (steered by UNSD, EEA and World Bank)
• 2012: presentation of the SEEA volume 1 to the UNSC 34th session (28 February –
2 March 2012) for adoption as a standard.
Jean-Louis Weber, 27 February 2012
UN manual for environmental-economic accounting: SEEA2003
Enlargement of SNA1993 (now 2008)
Revision  SEEA2012/13
Impacts on ecosystem capacity of
Natural resources
Ecosystems
delivering
services/benefits
Economic
Non-economic
assets (SNA)
assets
Opening
stocks
SNA
transactions 
and other
flows
Changes in
stocks
Closing stocks
Volume
Opening
stocks1
Volume
2
Opening
State
The SNA satellite
Ecosystem approach
accounts for theEconomic to accounting
Changes
activities,
Changes
environment


in stocks
natural Ecosystem stocks
in state
and
processes,
quality, valuation options…
expenditure, taxes,
etc.
hybrid accounts,
physical flows,
sub-soil, energy, water land,
Closing
economic assets depletion
stocks
Closing
state
Described in SNA
Negative feedbacks of ecosystem
degradation on production and wellbeing
RM HASSAN - UN The System of Environmental and Economic Accounting (UN 2003) RANESA Workshop June 12-16, 2005 Maputo
Jean-Louis Weber, 27 February 2012
2.6
What is the System of Environmental - Economic Accounting Volume 1
(so-called Central Framework)?
• The System of Environmental - Economic Accounting (SEEA) volume 1 framework
is a multi-purpose, conceptual framework that describes the interactions
between the economy and the environment, and the stocks and changes in
stocks of environmental assets.
• It brings together, in a single measurement system, information on water,
minerals, energy, timber, fish, soil, land and ecosystems, pollution and waste,
production, consumption and accumulation. Each of these areas has specific and
detailed measurement approaches that are integrated to provide a
comprehensive view.
• The concepts and definitions are designed to be applicable across all countries,
regardless of their level of economic and statistical development, their economic
structure, or the composition of their environment.
• The SEEA Volume 1 will be accompanied by two related parts: SEEA Experimental
Ecosystem Accounts, and SEEA Extensions and Applications.
Jean-Louis Weber, 27 February 2012
2.7
Summary Table of Contents of the SEEA Volume 1
• Chapter 1 Introduction to the SEEA Central Framework
• Chapter 2 Accounting structure
• Chapter 3 Physical flow accounts
• Chapter 4 Environmental activity accounts and related flows
• Chapter 5 Asset accounts
• Chapter 6 Integrating and presenting the accounts
Jean-Louis Weber, 27 February 2012
2.8
Chapter 2, “Accounting structure”
• Chapter 2, “Accounting structure”, outlines in some depth the key parts of the
SEEA Volume 1 (Central Framework) and the accounting approach that is used.
• The accounting approach of the SNA is the base.
• Ch.2 aims to explain in a clear fashion the types of accounts and tables that are
contained in the SEEA Volume 1 and the basic principles of accounting for stocks
and flows, the definition of economic units, and the principles of recording and
valuation.
• The accounting structure covers:
– Physical flows accounts
– Assets accounts (physical and valuation, depletion)
– Expenditure accounts
– Composite accounts, input-output analysis
Jean-Louis Weber, 27 February 2012
2.9
Chapter 3, “Physical flow accounts”
•
•
In Chapter 3, the different physical flows - natural inputs, products and residuals - are
placed in the structure of a physical supply and use table
The second half of Chapter 3 describes in detail the structure of physical supply and use
tables for energy (Section 3.4), water (Section 3.5) and various material flows, including
tables for air emissions, water emissions and solid waste (Section 3.6).
Jean-Louis Weber, 27 February 2012
2.10
Physical Supply and Use Table
Jean-Louis Weber, 27 February 2012
2.11
Definition of flows
• Natural inputs are all physical inputs that are moved from their location in the
environment as a part of economic production processes or are directly used in
production.
– They may be (i) natural resource inputs, such as mineral and energy resources or
timber resources, (ii) inputs from renewable energy sources, such as solar energy
captured by economic units, or (iii) other natural inputs such as inputs from soil (e.g.
soil nutrients) and inputs from air (e.g. oxygen absorbed in combustion processes).
• Products are goods and services that result from a process of production in the
economy. They are defined consistently with the definition of products in the
SNA.
• Residuals are flows of solid, liquid and gaseous materials, and energy that are
discarded, discharged or emitted by establishments and households through
processes of production, consumption or accumulation.
Jean-Louis Weber, 27 February 2012
2.12
Typical list of residuals
Jean-Louis Weber, 27 February 2012
2.13
Difficulty of Aggregating Physical Supply and Use Tables
•
“Of note is that, unlike monetary flows which are measured in currency units, physical
flows are generally measured in different units depending on the material. Thus, while it
is conceptually possible to compile a complete PSUT for all material flows in an economy
using a single measurement unit (e.g. tonnes), it is not usual practice”. (SEEA2012 , 2.47)
Jean-Louis Weber, 27 February 2012
2.14
Chapter 4, “Environmental activity accounts and related flows”
• Chapter 4, “Environmental activity accounts and related flows”, focuses on the
identification of economic transactions within the SNA that may be considered
environmental.
• They are firstly those transactions that relate to activities whose primary
purpose is to reduce or eliminate pressures on the environment or to make
more efficient use of natural resources. These types of transactions are
summarised in Environmental Protection Expenditure Accounts (EPEA), and in
statistics on the Environmental Goods and Services Sector (EGSS).
• This chapter also covers environmental taxes, environmental subsidies and
similar transfers, and a range of other payments and transactions related to the
environment.
• These transactions are all recorded in the SNA but are often not explicitly
identified as related to the environment.
• Three accounts: Producers, Financing and Beneficiaries
• Methodology derived from the European SERIEE system; guidelines in:
SERIEE – Environmental Protection Expenditure Accounts : Compilation Guide, (Eurostat, 2002).
Jean-Louis Weber, 27 February 2012
2.15
Classification of Environmental Activities
Jean-Louis Weber, 27 February 2012
2.16
National Expenditure on Environmental Protection
Jean-Louis Weber, 27 February 2012
2.17
Chapter 5, “Asset accounts”
• Chapter 5, “Asset accounts”, focuses on the recording of stocks and flows
associated with environmental assets.
• The environmental assets covered in the SEEA Volume 1 comprise mineral and
energy resources, land, soil resources, timber resources, aquatic resources,
other biological resources, and water resources.
• In Sections 5.1-5.4, the chapter discusses asset accounting in general terms with
a particular focus on the measurement of the depletion of natural resources and
the valuation of environmental assets.
• Sections 5.5 – 5.11 of the chapter describe the measurement of stocks and flows
for each of the individual environmental assets. For each asset type the
measurement scope is defined and the accounting in physical and monetary
terms is described.
• There are a number of annexes to Chapter 5 including a detailed explanation of
the Net Present Value (NPV) approach to the valuation of environmental assets,
and a discussion on discount rates which are an important component of the
NPV formulation.
Jean-Louis Weber, 27 February 2012
2.18
Classification of Assets in the SEEA Volume 1
Jean-Louis Weber, 27 February 2012
2.19
Assets in SNA and SEEA
Jean-Louis Weber, 27 February 2012
2.20
Asset Account
Jean-Louis Weber, 27 February 2012
2.21
Example for forest land accounts in hectares
Jean-Louis Weber, 27 February 2012
2.22
Example for timber resource accounts in cubic metres
Jean-Louis Weber, 27 February 2012
2.23
Measuring natural assets depletion
• Both the SEEA Central Framework and the SNA recognise the change in the value
of natural resources that can be attributed to depletion.
• Depletion, in physical terms, is the decrease in the quantity of the stock of a
natural resource over an accounting period that is due to the extraction of the
natural resource by economic units occurring at a level greater than that of
regeneration (thus the natural growth of biological resources such as timber and
fish is taken into account).
• Measures of depletion in physical terms can be valued to estimate the cost of
using up natural resources due to economic activity. In the SNA, the value of
depletion is shown in the other changes in the volume of assets account
alongside flows such as catastrophic losses and uncompensated seizures. Thus, it
is not recognised as a cost against the income earned by enterprises extracting
natural resources.
• In the SEEA, the value of depletion is considered to be a cost against income and
hence, in the sequence of economic accounts, depletion adjusted balancing
items and aggregates are defined which deduct depletion from the measures of
value added, income and saving.
• The measurement of degradation in physical and monetary terms is not pursued
in the Volume 1  SEEA Experimental Ecosystem Accounts.
Jean-Louis Weber, 27 February 2012
2.24
The valuation of environmental assets
• The valuation of environmental assets is a complex measurement task.
• The SEEA Central Framework adopts the same market price valuation principles
as the SNA.
• However, since observable market prices are usually not available for
environmental assets, the SEEA Central Framework provides an extensive
discussion of the techniques that may be applied in the valuation of these assets.
• This is particularly the case in relation to the description of the net present value
approach (NPV) to valuation and in the discussion of discount rates.
Jean-Louis Weber, 27 February 2012
2.25
Chapter 6, “Integrating and presenting the accounts”
• Chapter 6, “Integrating and presenting the accounts”, highlights the integrated
nature of the SEEA Central Framework and links the detailed measurement
guidelines of Chapters 3-5 with the presentation of information for users.
• Of particular focus in Chapter 6 is the explanation of combined presentations of
physical and monetary data (known also as NAMEA) and a range of examples of
such presentations are described.
• The chapter also introduces the various types of indicators that may be compiled
from SEEA Central Framework based data sets.
Jean-Louis Weber, 27 February 2012
2.26
Example: combined presentation for air emissions
Jean-Louis Weber, 27 February 2012
2.27
The SEEA Water 2006
• Based on water accounts developed and tested in France, Spain,
Chile, Australia, Moldova, Turkey, Canada…
• Tested since 2006 in circa 50 countries
• Water accounts for Europe, 27 countries to be released in March
2012
Presentation by courtesy of Ricardo Martinez-Lagunes, UNSD
Jean-Louis Weber, 27 February 2012
2.28
In general, water policy objectives can be grouped in the following four quadrants:
I.
Improving drinking
water and sanitation
services
II.
Managing water
supply and demand
Water
Security
III.
Mitigating water
resources degradation/
Improving quality of
water resources
IV.
Adapting to extreme hydrometeorological events
SEEA-Water and IRWS provide the concepts and methods for measuring progress towards the
attainement of the objectives in each of the four quadrants, as well as higher level indicators
linking water security and development.
Courtesy Ricardo Martinez-Lagunes, UNSD
Jean-Louis Weber, 27 February 2012
28
2.29
The four quadrants in plain English:
I.
Nature provides water, but not
the pipes
II.
Water is enough,
if it is well managed
Water
Security
III.
Water cleanses, but cannot
absorb all our wastes
IV.
Too much, too little,
better be prepared
Sustainable development requires good water and sanitation services for all, sharing water to
maximize benefits, making sure we don’t exceed water’s carrying capacity, and getting ready for
Courtesy Ricardo Martinez-Lagunes, UNSD
wet
and
dry years.
29
Jean-Louis
Weber,
27 February
2012
2.30
The System of Environment-Economic Accounting for Water (SEEA-Water) is a
conceptual framework for the integration of information related to water and the
economy, coherent with the System of National Accounts.
Statistics
Integrated information
SEEA-Water is based on a systemic approach, which concentrates on measuring all the “stocks”
and “flows” relevant to water policy making.
Jean-Louis Weber, 27 February 2012
Courtesy Ricardo Martinez-Lagunes, UNSD
2.31
…the water cycle can be described as a closed system where the law of mass
conservation has to hold. For simplicity not all the flows are shown.
Due to the complexities associated with measuring the atmospheric and oceanic stocks, it is more
practical to use an open system model (with clouds showing the boundaries)
Jean-Louis Weber, 27 February 2012
Courtesy Ricardo Martinez-Lagunes, UNSD
Atmosphere
Evaporation
SEEA-Water is based on a stock-flow model comprising two main subsystems: the
inland water resource system and the economy.
Precipitation
2.32
Inflows
Outflows
Inland Water Resource System
Outside
territory of
reference
Rest of the
World
Economy
Imports
Jean-Louis Weber, 27 February 2012
Returns
Sea
Precipitation for
in situ use
Abstraction
Outside
territory of
reference
Evaporation
Sea
Rest of the
World
Economy
Economy
Exports
32
Evaporation
The details of each subsystem are shown in the following diagram
Precipitation
Atmosphere
Inland Water Resource System
Soil water
Natural transfers
Surface water
Outside
territory of
reference
Outflows
Inflows
Outside
territory of
reference
Collection of
precipitation
Sea
Returns
Abstraction
Groundwater
Imports
Households
Other industries
(incl. Agriculture)
Water supply
Exports
Economy
Jean-Louis Weber, 27 February 2012
Return
Sewerage
Rest of the
World
Economy
Sea
Evaporation
Return
2.33
Rest of the
World
Economy
33
2.34
Standard physical supply and use tables for water
Jean-Louis Weber, 27 February 2012
2.35
Physical Asset Account for Water Resource
Jean-Louis Weber, 27 February 2012
2.36
Emission accounts
Pollutant
1. Gross emissions (=1.a+1.b)
1.a. Direct emissions to water (=1.a.1+1.a.2=1.a.i+1.a.ii)
1.a.1 Without treatment
1.a.2 After on-site treatment
1.a.i To water resources
1.a.ii To the sea
1.b. To Sewerage (ISIC 37)
Households
Other
industries
Sewerage
20
Jean-Louis Weber, 27 February 2012
Total
95
25
Courtesy Jeremy Web, UNSD
38,39,
45-99
5
5
90
37
185
90
30
95
36
30
25
Agriculture
185
35
Water resources and the sea
Rest of the
world
Total
5-33,
1-3 41-43
Rest of the
world
Industries (by ISIC categories)
Households
tonnes
Thank you!
Jean-Louis Weber
Special Adviser on Economic Environmental Accounting
European Environment Agency
[email protected]
[email protected]
Jean-Louis Weber, 27 February 2012