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Green GDP – Accounting for Ecosystem Services

Green GDP – Accounting for Ecosystem Services. Mark Eigenraam , Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global • Guiyang, China, 2013 Dialogue on Forestry in the context of Economic-Civilisation . A brief history…. 2007. 2005. 2012. 2013. 2002.

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Green GDP – Accounting for Ecosystem Services

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  1. Green GDP – Accounting for Ecosystem Services Mark Eigenraam , Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global • Guiyang, China, 2013 Dialogue on Forestry in the context of Economic-Civilisation

  2. A brief history… 2007 2005 2012 2013 2002 Vegetation policy - “Net Gain” • Native Vegetation Credit Register • BushBroker OFFSETS • BushTender INVESTMENT http://www.dse.vic.gov.au/land-management/victorias-native-vegetation-management-a-framework-for-action

  3. A brief history… 2007 2005 2010 2013 2002 Vegetation type, extent and condition mapping http://mapshare2.dse.vic.gov.au/MapShare2EXT/imf.jsp?site=bim

  4. A brief history… 2007 2005 2012 2013 2002 ecoMarkets • Payments for multiple ecosystem services EnSym • Environmental modelling https://ensym.dse.vic.gov.au/cms/

  5. More recently… 2007 2005 2012 2013 2002 Victorian Environmental Partnerships http://www.depi.vic.gov.au/environment-and-wildlife/environmental-partnerships

  6. 2007 2005 2012 2013 2002 Offset reform http://www.depi.vic.gov.au/environment-and-wildlife/biodiversity/native-vegetation

  7. 2007 2005 2012 2013 2002 Victorian Experimental-Ecosystem Accounts “establish internationally recognisable environmental accounts that improve the way we allocate resources” (Environmental Partnerships: Priority 8, 2012) https://ensym.dse.vic.gov.au/cms/index.php?option=com_content&view=article&id=60&Itemid=71

  8. Current context • What does it mean for business, government and the economy? • New ways to connect the economy with the environment! • Environmental markets – opportunities for investment • Environmental accounts – opportunities to understand ecosystem services natural capital provides and invest for the future

  9. National Statistics System of Environmental-Economic Accounts (SEEA) Environment Economy SNA Society

  10. SEEA Central Framework (CF) ASSET ASSET ASSET 1. 2. 3. http://unstats.un.org/unsd/envaccounting/seearev/

  11. SEEA CF in practice http://www.abs.gov.au/ausstats/abs@.nsf/mf/4628.0.55.001

  12. Spreadsheets & charts 7.16 Economic demonstrated stock of timber, Physical 7.17 Value of timber resources, Monetary

  13. Services ASSET Services Services SEEA Ecosystem Accounts Services Victorian approach to Ecosystem Accounts

  14. Victorian Ecosystem accounting concepts Inter Flows (input) Ecosystem Services (output) ECOSYSTEM ECOSYSTEM ECONOMY/SOCIETY Intra flows Intra flows Inter Flows (output) Inputs/Residuals Eigenraam et al., 2012

  15. Gross Ecosystem Product (GEP) *) Eigenraam et al., 2012

  16. Gross Ecosystem Product Inter flows (2.5 t/y nutrients) GEP = 2.5 t/y Inter flows (3.5 t/y nutrients) FOREST Intra flows Change GEP = 1.5 t/y Ecosystem Service - Clean water The ecosystem (FOREST) is improved to process more nutrients Inter flows (3.5 t/y nutrients) Inter flows (1 t/y nutrients) FOREST GEP = 1 t/y Intra flows

  17. Green GDP • Develop indices of GEP to inform Green GDP • Clean air, erosion control, habitat, nutrient processing, etc • Link changes in GEP to: • Changes in income (Green GDP) • Changes in environmental and ecosystem asset condition (degradation, depreciation) • Other measures of social wellbeing • Accounting for Ecosystem Services • Both the SEEA CF and SEEA EA provide a strong foundation to move forward

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