Post on 27-Mar-2015
transcript
OECDWGEIO meeting, Paris 17-18 November 2009
Ecosystem Capital Accounting:
towards a fast track implementation in Europe ?
Jean-Louis WeberSenior adviser economic-environmental accounting
European Environment Agency
“The same rule of self-destructive financial calculation governs every walk of life. We destroy the beauty of the countryside because the unappropriated splendours of nature have no economic value. We are capable of shutting off the sun and the stars because they do not pay a dividend.” John Maynard Keynes 1933
“ Because National Accounts are based on financial transactions, they account for nothing Nature, to which we don’t owe anything in terms of payments but to which we owe everything in terms of livelihood.” Bertrand de Jouvenel 1968
2 approaches to ecosystem economics:maximisation of benefits (the financial value of nature)
vs. maintenance of options (the quantity*quality of nature)
• Maximisation of benefits from nature measurement of benefits & losses (e.g. TEEB’s COPI study) or of ecosystem services value entangled into commodities or real estates (WB current proposal for SEEA revision). Requires measurement and valuation of ecosystem services & ecosystem assets. Ecosystem depreciation calculated as the difference in ecosystem asset value at two dates. Accounting prices: depends on services and purposes (market prices, production functions, contingent values, assets as NPV of future benefits = financial approach) relevant for planning, project impacts assessments (CBA).
• Maintenance of options (ecosystems potential of delivering services) measurement of ecosystem capital degradation in physical units (quantity*quality) & valuation limited to remediation costs. Equivalent to the calculation of capital maintenance cost (Consumption of Fixed Capital). No valuation of ecosystem services nor of ecosystem assets. Accounting prices: derived from observed remediation costs (statistics) relevant for National Accounts, as well as for business accounting (options and risks)… and for CBA in addition.
3 – Public Good: non-transferable rights on ecosystem good state (health, sustainable potential), non-rival,
non-exclusive use
Services valuation,
payments forservices [PES,
purchase]
1 – Produced & Non produced Assets/SNA: mostly private goods
Ecosystem resources, services and values: 3 components
2 - Non produced Assets/ Other Services: mostly
common goods
Reg
ulat
ing R
ecreating
Provisioning
Payments forrestoring
ecosystem potential
(permits, taxes)
Ecosystem Accounting: Green National Accounts vs. Costs-Benefits Analysis
National Accounts =the macro-economic picture
adjusted for natural capital depreciation
Benefits & Costs Assessments =extended accounts for projects,
sectors…
Operation costs E.S n
Operation costs E.S 5
Operation costs E.S 4
Operation costs E.S 3
Operation costs E.S 2
Operation costs E.S 1
+
Consumption of Natural Capital & Adjustment of National Accounts for “under-investment” and “over-consumption”
Final Consumption at Full Cost of
Goods & Services
=Final Consumption
at Purchaser’s Price +
Virtual Consumption of Ecosystem Capital
in Imports (minus in Exports)
+
–
Depletion of Sub-soil Assets
=Adjusted Disposable (Real)
National Income
Gross Domestic Product
Transfers with the Rest of World– or +
=
– Consumption of Fixed Capital
National Income (NI or NNP)=
–
Gross National Income
Depreciationof (domestic)
Ecosystem Capital
Sustainable Development & Ecosystem Capital Depreciation:1 aggregate for 3 pillars
Remediation Remediation costs of costs of
ecosystem ecosystem capital capital
depreciationdepreciation
Economy: capital maintenance
Real disposable Income, net savings, true prices, liabilities, development of green jobs, economic resource
Social: sustainable consumption
Full price of consumption, consumption patterns, equity, new jobs
Environment: alleviation/mitigation of nature degradation
Sustainable use of natural resource & public good
“Double” decoupling, the second indicator
Sustainable Development = Thriving ecosystems producing altogether:• economic resources• carbon• biodiversity• clean air, clean water• options for the future (“development as freedom” – A.S.)
Final Consumption [purchaser price] Final Consumption [full cost]
Adjusted Disposable National Income National Income
Ecosystem Adjusted Net Savings Net Savings
Consumption of Ecosystem Capital GDP
Consumption of Material/Energy GDP
Ecosystem Capital Depreciation, Remediation Costs& EU environmental policies
Water Framework Directive “full recovery of costs”
EU Climate change programme offset costs of carbon emission
Environmental Liability Directive impacts remediation costs
Natura2000 (as application of ELD 2004): restoration or replacement of degraded sites costs
Make it happen? Make it simple! : a “Cubist” Approach
Multi-criteriarating
Ge
orges B
raqu
e – H
arbou
r in
No
rman
dy, 1909
Water Index(exergy loss
from evaporation & pollution)
Bio-productivity Index
(carbon, biomass, diversion from
Nature)
Biodiversity Index
(rarefaction,loss of
adaptability)
Dependency Index
(land, soil, energy,water, N,P,K...)
Landscape Index
(the LandscapeEcological Potential)
Health Index (human, wildlife
and plants populations)
Total Ecological Potential (terrestrial
ecosystems)
Total Ecological Potential (terrestrial
ecosystems)
Total Ecological Potential (terrestrial
ecosystems)
Health Index (human, wildlife
and plants populations)
Health Index (human, wildlife
and plants populations)
Water Index(exergy loss
from evaporation & pollution)
Water Index(exergy loss
from evaporation & pollution)
Landscape Index
(the LandscapeEcological Potential)
Landscape Index
(the LandscapeEcological Potential)
Bio-productivity Index
(carbon, biomass, diversion from
Nature)
Bio-productivity Index
(carbon, biomass, diversion from
Nature)
Biodiversity Index
(rarefaction,loss of
adaptability)
Biodiversity Index
(rarefaction,loss of
adaptability)
Dependency Index
(land, soil, energy,water, N,P,K...)
Dependency Index
(land, soil, energy,water, N,P,K...)
Depreciation of Ecosystem Capital = Change in TEP * €No valuation of ecosystem services or assets is needed
Change in Total
Ecological Potential
Change in Total
Ecological Potential
Ser
vic
es
Sec
tors
Sp
ati
al
Un
its
Ba
sic
ph
ys
ica
l b
ala
nc
es
Sp
ati
al
Un
its
He
alt
h
coun
ts
Water resource,
supply & use
Land Use (surfaces
& commodities)
Carbon/ biomass resource,
supply & use
Water functions & ecosystem services
Land functions & ecosystem
services
Carbon/ biomass
functions & ecosystem services
Water bodies resource & abstraction
Land cover stocks & change
Carbon/ biomass
resource and extraction/ harvesting
Water quantity & quality
Landscape patterns
Carbon/ Biomass,
productivity
Human morbidity/
environment & food security
Dependency from
regulating ecosystem
services
Biodiversity related
ecosystem services
Distribution of critical areas
for health
Natural and semi-natural habitats & species
distribution
Water, C, energy, NPK,
subsidies
Ecosystem health factors
Biodiversity factors
Net external balances by
socio-ecosystems
LCA: impacts of chemical,,
on human and wildlife health
Fishing, hunting,
harvesting of wild species
(non cultivated)
Sec
tors
Expe
nditu
re
acco
unts Water
protection & management
Land protection & management
Carbon/ biomass
Protection & management
Health protection
Biodiversity protection
Agriculture & fishery
subsidies
Virtual land, water, and carbon use
(domestic and in imports)
Sp
ati
al
Un
its
Ind
ex
es Water Index
(exergy lossfrom evaporation
& pollution)
Landscape Index
(the LandscapeEcological Potential)
Carbon/ biomass
Index(carbon, biomass,
diversion fromNature)
Health Index
(human, wildlife and plants
populations)
Biodiversity Index
(rarefaction,loss of
adaptability)
Dependency Index
(land, soil, energy,water, N,P,K...)
Ecosystem capital
depreciation
Maintenance/ Restoration
Costs
degradation
mean
€
Implementation priorities
Accounts & Indexes : e.g. Carbon Ecosystem Accounts
Opening stocks by ecosystems• Formation of bio-C (Net Ecosystem
Production)
• Withdrawals by activities• Net transfers between ecosystems• Returns from activities• Imports/Exports• Storage in the user system• Consumption/combustion of bio-C
• Changes due to natural & multiple causes
• In situ bio-C storage
Final stocks by ecosystems
• Withdrawal of bio-C• Input-Output between sectors• Returns of bio-C• Imports/Exports• Storage in the user system• Consumption/combustion of bio-C
• Consumption/combustion of bio-C• Combustion of fossil fuel• CO2/CH4 emissions
Ecosystem Asset Account (Bio-C balances)
• NPP trends
• NPP perturbation
• Change in NPP profiles
Consumption of C / Emissions of CO2 CH4
Net Carbon Offset Expenditures
• C taxes and subsidies• Net purchase of C permits
Ecosystem C-Productivity Counts
Sector Accounts (Supply & Use, MFA, NAMEA, Expenditures)
Virtual C embodied in Import-Export
• Virtual C by products
Carbon/biomass indexes (parts)
Trends in NPP and cumulated annual change 2000-2008
+-
Standard deviation of NPP trend 2000-2008
High variability
Low variability
Corine land cover map (CLC is derived from satellite images)
Green Landscape Index (derived from CLC)
Nature Value (Naturilis, derived from Natura2000 designated areas)
Fragmentation (Effective Mesh Size (MEFF) derived from TeleAtlas Roads and CLC)
Landscape Ecological Potential (LEP) 2000, by 1km² grid cell
LEP 2000 by NUTS 2/3
Land Index: Landscape Ecological Potential
1990Change 1990-2000
• LEAC/ Landscape Ecological Potential 1990-2000, 1km² grid (Source: Ecosystem Accounting for Mediterranean Wetlands, an EEA feasibility study for TEEB)
Land Index: LEP, state and change by 1 km² grid
Legend
Camargue Regional Park, France
Change in net LEP 1990 to 2000
1 km² grid, range : -100 to +100
Improvement/ Highest : 47
Degradation/ Lowest : -33
Natural Park of Camargue (France)Natural Park of Camargue (France)
Water accounts meeting WFD requirements
Cost for mitigating impacts of useover water bodies
CMI
Cost of ecosystem restoration CER
Cost of water supply including sewage & treatment (service)
CWS
Restoration
PHYSICAL COSTS MONETARY COSTS
Degradation ofwater quality
Water use
Impacts onecosystems
Physico-chemicalobjectives
Biological &hydro-morphological objectives
Full recovery of water costs of the WFD = CWS + CMI + CER
Cost of the “effective measures” for meeting the objective of the WFD considered in the Program me of Measures of River Basin Management Plan
JLW adapted from: Joan Escriù, Jose Manuel Naredo, Antonio Valero 2007
Input from “conventional” environment and resource accounts
• Physical accounts– MFA (particular interest to impacts, linkage to LCA…)– Input-Output Tables, Hybrid accounts (NAMEA)
• Environmental protection and resource management expenditures– Statistical source for calculating mean remediation costs
+ broad use of socio-economic statistics: – Socio-demography, health – Agriculture, forestry, fisheries– Energy– Trade…
Ex. Use of agriculture statistics: Virtual Land Use & Agriculture Footprints (input to Dependency Index)
Trends in EU virtual land flows: EU agricultural land use through international trade between 1995-2005. Manel van der Sleen, EEA 2009
Net virtual land use between EU and major trade partners
-2
0
2
4
6
8
10
12
14
16
18
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Milj
oe
ne
n
Years
La
nd
us
e i
n h
ec
tare
s
UNITED STATES
UKRAINE
SAUDI ARABIA
RUSSIAN FEDERATION(RUSSIA)INDONESIA (ID+TP from77,excl. TP -> 2001)GHANA
COTE D'IVOIRE
CANADA
BRAZIL
ARGENTINA
Conclusive remarks
• Simplified accounts, outcome oriented: measurement of ecosystem capital depreciation
• Multicriteria diagnosis of ecosystem state from a small set of indexes based on physical accounts: measurement of ecosystem degradation (resource quantity and ecosystem health altogether)
• Priority integration of land (terrestrial atmosphere) assessment• No valuation of ecosystem capital and services; only valuation of
remediation costs• Messages for green economy (green growth, beyond GDP…):
ecosystems), water (inland and sea) and carbon (bio-C, – Reinvestment for maintaining ecosystem capital Adjusted Disposable National
Income as performance indicator– Real price of final consumption FC at full cost (environmentally sustainable)– Real price of imports and exports trade at full cost– Environmental liabilities created when full costs are not paid