EEA proposals for developing EU ecosystem (capital) accounts

1. EEA proposals for developing EU ecosystem (capital) accounts Jan-Erik Petersen 1 October 2015

2. Starting point I: EU roadmap for NCA Focus of WS Building on SEEA achieve step-wise implementation of : 2015-16: Bio-physical ecosystem asset accounts (at EU level and in MS) 2016-18: Accounting for ecosystem services (at EU level and in MS) 2018-20: Valuation of ecosystems and their services (at EU level and in MS)

3. Starting point II: the current framework of EEA SECA Ecosystem reporting and analysisunits Water quality Biomass carbon Marine fish stocks Land cover/use Water quantity (SEEA water) Biodiversity/landscape structure Marine ecosystem units LEAC reference grid Geo-spatialisation of statistical data Water basins Geo-spatialisation of statistical / WFD data

4. What next? Key considerations: • Further define purpose and goals for EU system • In relation to policy targets and needs • To harness analytical value-added of accounts • Better understand how to develop an EU system of ecosystem accounts that is: • Fit for purpose (see a above) • Matches statistical and analytical quality criteria • Can become operational with given resources • Aim for an fully integrated index or be based on a ‘dashboard account’ ?

5. Ad 1) What is the analytical value-added of ecosystem accounts? • Tracking trends in the ecosystem asset, i.e. extent and condition of ecosystems? • Understanding current and future supply of ecosystem services (by ecosystem & beneficiaries)? • On that basis develop the green (part of) GDP, i.e. a more complete national ‘wealth accounting’ ? • Use accounting for understanding linkages, e.g. which sectors cause ecosystem degradation? • Develop market approaches for managing ecosystems and integrating them into public + business planning?

6. Ad 1) Managing natural capital sustainably: staying within planetary boundaries..

7. Ad 2) EEA considerations for ecosystem accounts: (Simplified) ecosystem (capital) accounts should ideally be: • Representative of key ecosystem functions / types of ecosystem capital stock • Targeted on functional ecological units (water basins, ecosystem types etc.) • Aligned with key EU policy targets & planetary boundaries • Transparent and easily communicable • Look at trends that are likely to show a clear signal • Follow an analytical approach aligned with characteristics of data (i.e. avoiding analytical over-reach) • Be nested in existing ecosystem accounting guidance

8. Ad 2) A reflection on the how (‘step-wise implementation’) 2025 2020 2016

9. EEA proposal for developing ecosystem accounts EEA proposes a dashboard approach which combines accounts and indicators (as in GDP and SEEA). Two options can be considered: • A dashboard focused on the previous EEA approach (aka technical report 2011 & ENCA, looking at ‘sustainability of use’ etc.) combined with some additional elements, such as ‘fish accounts’ & nutrient balance (if possible) • A dashboard that focuses on key aspects of ecosystem status and use, building on simple accounts and indicator information across a wide range of ecosystem capital elements (this could also be developed as a set of ‘mini-dashboards’).

10. Dashboard 1): focused on existing accounts Sum up: median, average.. Alternative summing up: red & green dots, % of trends, balance between red and green, ..

11. Dashboard 2): combining accounts & indicators Sum up: median, average.. Alternative summing up: red & green dots, % of trends, balance between red and green, ..

12. Summing-up – tasks for the workshop • Review current state of development • Understand technical underpinning of key component accounts • Identify important policy and analytical uses • Agree main criteria for development of EU ecosystem accounting system • Identify key design elements of EU system • Develop list of next steps for development of EU ecosystem accounts