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Rocky Harris Department for Environment, UK

This document outlines the UK Government's commitment to incorporating natural capital in their accounting practices, with a focus on ecosystem accounting. It discusses the need for an accounting approach, the types of questions that can be answered with ecosystem accounts, and the information needs for effective implementation. It also highlights the roles of the Natural Capital Committee, the Office for National Statistics (ONS), and the Department for Environment, Food and Rural Affairs (Defra) in implementing ecosystem accounts. The document concludes with suggestions for starting the implementation process, including stakeholder engagement, pilot studies, and managing expectations.

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Rocky Harris Department for Environment, UK

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  1. Rocky HarrisDepartment for Environment, UK Ecosystems accounting in the UK UNCEEA Rio de Janeiro June 2012

  2. UK Government commitment “We will put natural capital at the heart of Government accounting.We will work with the Office for National Statistics to fully include natural capital in the UK Environmental Accounts …. In 2012 we will publish a roadmap for further improvements up to 2020. Over time , we will move from measuring the value of the physical stocks to systematically valuing the services they provide. Further research will be undertaken to do this, building on the results of the National Ecosystem Assessment.” Natural Environment White Paper, 2011

  3. Why do we need an accounting approach? Discipline of working within an accounting framework: • Clarifies the concepts used • Defines the relationships between the variables • Enables links to be made with other data sources and other accounts • Enables gaps to be identified and conflicts between different sources to be resolved

  4. What types of questions can we answer with ecosystem accounts that we cannot answer with the central framework? A lot will depend upon the spatial scale we choose to work at • Informing better decision-making (underpinning the natural capital asset check) • Tracking sustainability (basis for compilation of indicators) • Detailed statistics (a better understanding of the link between ecosystems and economic activity)

  5. What are the information needs? • Will depend upon the priorities – start with the known rather than the unknown • Initially likely to need modelling to produce ball-park figures • NEA follow-up to include inventory of sources • NEA follow-up and Natural Capital Asset check intended to address major gaps – we expect new evidence projects will require a slight ‘tweaking’ to ensure data gaps for accounting are covered

  6. Remit of Natural Capital Committee • Provide advice on when, where and how natural assets are being used unsustainably • Advise the Government, using sound economic analysis, on how it should prioritise action to protect and improve natural capital • Advise the Government on research priorities to improve future advice and decisions on protecting and enhancing natural capital, reflecting consultations with the Research Councils and the academic community

  7. Natural Capital Asset Check and relationship to the ecosystems accounts

  8. Roles of ONS and Defra in implementing ecosystem accounts ONS • Main compiler • Expertise in National and Environmental Accounts • Experimental statistics, potentially official statistics Defra • Potentially the main user • Expertise in ecosystems science • Funding of new research and data collection • (Some expertise in environmental accounting)

  9. Institutional arrangements • Project management in Office for National Statistics as part of ‘Measuring National Well-Being’ Programme • Formal reporting to Defra Management Board and Defra Ministers on monthly basis • Natural Capital Committee, reporting to the Chancellor of the Exchequer, expected to take a close interest in progress

  10. How to start implementing ecosystem accounts? • Consulting widely and engaging stakeholders including academic community through advisory group • Ensuring links with policy are established (through the Natural Capital Committee in particular) • Issuing roadmap to set out development path and manage expectations, following consultation (on 17 July) • Start with a pilot study (woodlands) for a relatively easy area and learn lessons • Don’t let the best be the enemy of the good!

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