System of Environmental-Economic Accounting: Experimental Ecosystem Accounts: Diagnostic tool for Strategic planning1 Version 4.0, September 22, 2014 WHAT IS THE PURPOSE OF THIS DIAGNOSTIC TOOL? This Diagnostic Tool facilitates the introduction of strategic planning for advancing the implementation of SEEA Experimental Ecosystem Accounts (SEEA-EEA). It is intended to guide an early-stage, structured conversation among stakeholders. The tool assists with linking the improvement of foundational information on the environment and the economy to policy and decision making. When using the tool, it is important to include potential producers, users and supporters in the conversation. The tool has been designed for use in a workshop setting. However, iteration will likely be required to achieve consensus in response to the tool’s queries. For example, a small core group may draft initial responses and then present them to a larger group for discussion. The Diagnostic Tool is organised along the seven steps to strategic planning of the SEEA-EEA: 1. POLICY OR STATEMENT OF STRATEGY: Document national priorities related to the environment, sustainability and the green economy, including the condition of key ecosystem assets and flows of ecosystem services from them. 2. INSTITUTIONS: Identify the stakeholders including producers and users of related information (statistics, tools, accounts, etc.), but also other groups that can benefit from improved information. As well, identify institutional mechanisms currently in place to make decisions related to the environment, sustainability and green economy. 3. KNOWLEDGE: Identify key national data sources that can be used as a basis for SEEA-EEA. 4. PROGRESS: Understand what progress has already been made in SEEA-EEA. 5. CONTEXT: Identify related statistical development activities that could benefit SEEA-EEA initiatives. 6. PRIORITIES: Determine the priorities for action to develop selected SEEA-EEA accounts. 7. CONSTRAINTS AND OPPORTUNITIES: Assess constraints to better implementing specific SEEA- EEA accounts and opportunities for immediate actions to address these constraints. Since achieving consensus is an iterative process, the steps in this diagnostic can be taken in any order. See Appendix 3 for links to related materials. 1 This document is based on Development of a Diagnostic Tool for the SEEA Central Framework supported by the World Bank WAVES program http://unstats.un.org/unsd/envaccounting/ceea/meetings/UNCEEA-8-Bk2.pdf. This was originally adapted from the IIED/UNEP-WCMC Biodiversity Mainstreaming: A Rapid Diagnostic Tool (http://pubs.iied.org/G03694.html) and further adapted for ecosystem accounting under the Advancing Natural Capital Project http://www.teebweb.org/areas-of- work/advancing-natural-capital-accounting). 1 WHAT IS SEEA? Critical global policy demand to advance SEEA-EEA accounting is expressed in the Strategic Plan for Biodiversity 2011-2020. Within the strategic plan, Aichi Target 2 commits governments to integrate, by 2020, biodiversity values into national and local development and poverty reduction strategies and planning processes, and to incorporate them into national accounting, as appropriate, and reporting systems. This objective is repeated in Target 15.9 of the Outcome Document – Open Working Group on Sustainable Development Goals. In support of natural capital accounting, the System of Environmental-Economic Accounting 2012 Central Framework (SEEA-CF) was adopted by the United Nations Statistical Commission (UNSC) at its 43rd session in 2012 as the international statistical standard for environmental-economic accounting. At its 44th session in 2013, the UNSC endorsed SEEA 2012 Experimental Ecosystem Accounting (SEEA- EEA). Further, the Commission encouraged the use of SEEA-EEA by international, regional agencies and countries wishing to test and experiment in this new area of statistics. Together these technical documents provide a comprehensive platform for the development of comparable measures of the relationship between the environment and the economy across the world and support mainstreaming of the full range of ecosystem services and benefits in standard macro-economic accounts and indicators. SEEA provides a coherent and integrated framework for collecting, organizing, analysing, presenting environmental data and relating it to economic and social data. It adheres to the principles of the System of National Accounts (SNA), and expands its scope by: • providing standard terminology, definitions and classifications for environmental-economic statistics, • including measures of the physical stocks of natural capital and their values, • adding physical measures of resource flows and natural capital (land, metals and minerals, timber, energy, water, fish, air emissions, water emissions, solid waste, protection expenditures), • adding ecosystems and their services, including biodiversity and carbon in the SEEA-EEA, and • linking economic activities (producers and consumers) to societal benefits. Experience has shown that SEEA implementation works best when: • Producers and users of information collaborate to define their needs and opportunities, • Organisations actively link the production and use of information to reporting the performance of policies, • Organizations are prepared to change the way they do things to provide better information and to use it effectively, and • Activities across sectors are well coordinated. The focus of this Diagnostic Tool is on advancing SEEA Experimental Ecosystem Accounting through testing. It represents the leading edge of accounting practice. The modelling and scaling of information on ecosystem services, ecosystem condition, and ecosystem capacity across all types of ecosystems represents a significant challenge. However, understanding and knowledge in this area is advancing at a rapid pace involving people from many disciplines including ecology, economics, statistics and geography. Data sources range from specific local data to global satellite imagery. While complex, there is undoubtedly a way forward and this tool seeks to consolidate the gains that have been made and to support the advancement of the work. The needs have never been greater. 2 POLICY OR STATEMENT OF STRATEGY POLICY PRIORITIES AND POLICY TOOLS AVAILABLE OR CONTEMPLATED SEEA-EEA can support a variety of policies including: • Making informed decisions about trade-offs between conservation and development • Improving access to and distribution of ecosystem services and natural resources • Managing supply and demand for ecosystem services and natural resources • Improving the state of ecosystems and reducing impacts of development on them • Mitigating risks of extreme events and adapting to them • Coordinating and streamlining efforts in research, data collection, reporting and decision making What is the ultimate vision for sustainable development, green economy and ecosystems for your country? • What related policy tools (e.g. laws, zoning regulations, taxes/subsidies, education) are in place or are being contemplated? • What are your most important strengths in this area and where do institutions, policies and data require strengthening? • Which natural resources or ecosystems are of particular national concern? (e.g., water, land, forests, biodiversity) _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ INSTITUTIONS STAKEHOLDERS & INSTITUTIONAL MECHANISMS Who are the main stakeholders in sustainable development and green economy policy? This includes not only the producers of the data but also the potential users of the data and other interests that could benefit from improved information. You should identify key individuals, either as actual or potential champions as well as influential people. Groups that may be considered include: • Central government agencies (finance, treasury, planning, international relations, etc.), • Social, industry and economic government agencies, • Environment and natural resource government agencies, and • Universities, NGOs, and private industry associations. Please describe any important interdepartmental mechanisms, strategies and plans already in place to make sustainability and green economy decisions. _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ 3 KNOWLEDGE DATA SOURCES What are the main data sources and what is their availability and quality? Depending on the priority, this could include: • Topographic, hydrological and other basic spatial boundaries (national and state/provincial boundaries, river basins, digital elevation models, bio-regions, etc.) • Land cover, land use and land use planning data (e.g. from remote sensing) • Soil data (e.g. type, depth, erosion, nutrients, etc.) • Protected area data and protected species lists (e.g. using the IUCN threat categories) • Expenditure on protected areas • Land taxes, ownership and management regimes (e.g., private, conservation, exploitation) • Forestry and fisheries statistics • Water statistics • Tourism statistics • Spatially-detailed socio-economic statistics (population, dwellings, income, industry of work) • Other significant data sources (e.g., administrative data, specific household or business surveys) Please describe any key documents and research initiatives that are related to the priority sources identified. _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ 4 PROGRESS EXISTING NATIONAL ASSESSMENTS Have any of the above data been synthesised or prototyped in the past? The SEEA accounts include: • Asset accounts o Land cover and land use (see Appendix 1 for an example) o Soil resources o Timber resources o Aquatic resources (fish and crustaceans) o Water resources(supply and use) • Physical flow accounts o Physical supply and use for timber o Physical supply and use for fish o Emissions to water and air • Monetary flow accounts o Environmental protection expenditure accounts (EPEA) o Resource use and management accounts (RUMEA) o Environmental goods and services sector (EGSS) o Environmentally related payments to and by government • Ecosystem accounts o Land/ecosystem condition and capacity o Carbon o Biodiversity o Ecosystem services assessments o Ecosystem services valuation studies or assessments (pilot, small area or national) (see Appendix 2 for a summary of the CICES classification of ecosystem services) _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ 5 CONTEXT RELATED STATISTICAL DEVELOPMENT ACTIVITIES Are there other activities focussed on statistical development? These could include (see Annex 3 for links to sources): • National Statistical Development Strategy (NSDS), • SNA 2008 Implementation Strategy, • State of the Environment Reporting, Reporting on Millennium Development Goals, • Regional (supra-national) environmental reporting initiatives or agreements. _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ PRIORITIES PRIORITY ACCOUNTS Given the policy priorities, availability of knowledge and stakeholder interest, which SEEA accounts are of the highest priority to begin implementation? _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ CONSTRAINTS FEASIBILITY Of the priority accounts, what are the constraints to implementing them as ongoing statistical activities? Some accounts may have few constraints and are ready to test. Others may require a combination of capacity building (training, guidance documents), data development (establishing or improving sources of data) and institutional coordination (establishing or adapting mechanisms, securing funding sources). READY TO TEST Accounts: ____________________________________________________________________________ Constraints: ___________________________________________________________________________ _____________________________________________________________________________________ 6 NEED CAPACITY BUILDING Accounts: ____________________________________________________________________________ Constraints: ___________________________________________________________________________ _____________________________________________________________________________________ NEED DATA DEVELOPMENT Accounts: ____________________________________________________________________________ Constraints: ___________________________________________________________________________ _____________________________________________________________________________________ NEED INSTITUTIONAL COORDINATION, FINANCING Accounts: ____________________________________________________________________________ Constraints: ___________________________________________________________________________ _____________________________________________________________________________________ OPPORTUNITIES PRIORITY ACTIONS What are immediate actions that can be taken to overcome the constraints to begin implementing priority accounts? Please consider any national development planning deadlines that may be an opportunity for funding. Accounts: ____________________________________________________________________________ Actions: ______________________________________________________________________________ _____________________________________________________________________________________ Accounts: ____________________________________________________________________________ Actions: ______________________________________________________________________________ _____________________________________________________________________________________ 7 APPENDIX 1: ECOSYSTEM ASSETS ACCOUNT From SEEA Experimental Ecosystem Accounting Artificial Crops Grassland Tree Mangroves Shrub Regularly Sparse Terrestrial Permanent Coastal water surfaces covered covered flooded natural barren snow, glaciers and inter-tidal area area areas vegetated land and inland areas areas water bodies Opening stock of resources 12 292.5 445 431.0 106 180.5 338 514.0 214.5 66 475.5 73.5 1 966.5 12 949.5 19 351.5 Additions to stock Managed expansion 184.5 9 355.5 Natural expansion 64.5 1.5 Upwards reappraisals 4.5 181.5 Total additions to stock 184.5 9 355.5 69.0 181.5 1.5 Reductions in stock Managed regression 4 704.0 3 118.5 9.0 1 560.0 1.5 Natural regression 1.5 64.5 Downwards reappraisals 4.5 Total reductions in stock 4 704.0 3 118.5 10.5 1 629.0 1.5 Closing stock 12 477.0 454 786.5 101 545.5 335 577.0 204.0 64 846.5 72.0 1 966.5 12 949.5 19 353.0 8 APPENDIX 2: LIST OF ECOSYSTEM SERVICES Common International Classification of Ecosystem Services (CICES, V4.3, January 2013) Section Division Group Class This column lists This column divides The group level splits The class level provides a further sub-division of group the three main section categories into division categories by categories into biological or material outputs and bio- categories of main types of output or biological, physical or physical and cultural processes that can be linked back to ecosystem process. cultural type or concrete identifiable service sources. services process. Provisioning Nutrition Biomass Cultivated crops Reared animals and their outputs Wild plants, algae and their outputs Wild animals and their outputs Plants and algae from in-situ aquaculture Animals from in-situ aquaculture Water Surface water for drinking Ground water for drinking Materials Biomass Fibres and other materials from plants, algae and animals for direct use or processing Materials from plants, algae and animals for agricultural use Genetic materials from all biota Water Surface water for non-drinking purposes Ground water for non-drinking purposes Energy Biomass-based energy Plant-based resources sources Animal-based resources Mechanical energy Animal-based energy Regulation & Mediation of waste, Mediation by biota Bio-remediation by micro-organisms, algae, plants, and Maintenance toxics and other animals nuisances Filtration/sequestration/storage/accumulation by micro- organisms, algae, plants, and animals Mediation by Filtration/sequestration/storage/accumulation by ecosystems ecosystems Dilution by atmosphere, freshwater and marine ecosystems Mediation of smell/noise/visual impacts Mediation of flows Mass flows Mass stabilisation and control of erosion rates Buffering and attenuation of mass flows Liquid flows Hydrological cycle and water flow maintenance Flood protection Gaseous / air flows Storm protection Ventilation and transpiration Maintenance of Lifecycle maintenance, Pollination and seed dispersal physical, chemical, habitat and gene pool Maintaining nursery populations and habitats biological conditions protection Pest and disease Pest control control Disease control Soil formation and Weathering processes composition Decomposition and fixing processes Water conditions Chemical condition of freshwaters Chemical condition of salt waters Atmospheric Global climate regulation by reduction of greenhouse gas composition and concentrations climate regulation Micro and regional climate regulation 9 Cultural Physical and intellectual Physical and Experiential use of plants, animals and land-/seascapes in interactions with biota, experiential different environmental settings ecosystems, and land- interactions Physical use of land-/seascapes in different environmental /seascapes settings [environmental settings] Intellectual and Scientific representative Educational interactions Heritage, cultural Entertainment Aesthetic Spiritual, symbolic and Spiritual and/or Symbolic other interactions with emblematic Sacred and/or religious biota, ecosystems, and Other cultural outputs Existence land-/seascapes Bequest [environmental settings] Source: www.cices.eu. 10 APPENDIX 3: LINKS TO OTHER SEEA-RELATED MATERIAL The main SEEA website: http://unstats.un.org/unsd/envaccounting/seea.asp • Briefing Note on SEEA: http://unstats.un.org/unsd/envaccounting/SEEA-Brochure-SC- 2013.pdf • SEEA Experimental Ecosystem Accounting (White Cover Version): http://unstats.un.org/unsd/envaccounting/eea_White_cover.pdf o Briefing Note: http://unstats.un.org/unsd/envaccounting/workshops/int_seminar/note.pdf • SEEA Central Framework: (Final English Version) http://unstats.un.org/unsd/envaccounting/seeaRev/SEEA_CF_Final_en.pdf (Also available in Arabic, Chinese (draft), French (draft), Russian (draft) and Spanish (Draft) o Briefing Note: http://unstats.un.org/unsd/envaccounting/Brochure.pdf • SEEA Applications and Extensions: http://unstats.un.org/unsd/envaccounting/ae_white_cover.pdf • SEEA Energy: http://unstats.un.org/unsd/envaccounting/energy.asp o Compilation Guidelines: • SEEA Water: http://unstats.un.org/unsd/envaccounting/water.asp o International Recommendations for Water Statistics (IRWS): http://unstats.un.org/unsd/envaccounting/irws/ o Compilation Guidelines: http://unstats.un.org/unsd/envaccounting/WCG14.pdf SEEA-EEA country examples: • Canada: Measuring Ecosystem Goods and Services: o English: http://www.statcan.gc.ca/pub/16-201-x/16-201-x2013000-eng.htm. o French: http://www.statcan.gc.ca/pub/16-201-x/16-201-x2013000-fra.htm. • Australia: http://www.abs.gov.au/ausstats/abs@.nsf/Products/4655.0.55.002~2013~Main+Features~C hapter+6+Land+and+ecosystem+accounting?OpenDocument • Victoria, Australia: https://ensym.dse.vic.gov.au/cms/index.php?option=com_content&view=article&id=60&Ite mid=71 The Framework for the Development of Environmental Statistics (FDES 2013): http://unstats.un.org/unsd/environment/fdes.htm . UNSD SNA 2008 Implementation Strategy: http://unstats.un.org/unsd/nationalaccount/imp.asp. Aichi Targets: http://www.cbd.int/sp/targets/ • Open Working Group on Sustainable Development Goals: http://sustainabledevelopment.un.org/owg.html The Common International Classification of Ecosystem Services (CICES 2013): http://cices.eu. Paris21 National Statistical Development Strategy (NSDS): http://www.paris21.org/NSDS. OECD Environmental Country Reviews: http://www.oecd.org/env/country- reviews/oecdenvironmentalperformancereviews.htm. 11