AN ECOSYSTEM APPROACH TO SEEA
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Session 9 on ecosystem accounts
Jean-Louis Weber
European Environment Agency
jean-louis.weber@eea.europa.eu
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Outline
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Developing the ecosystem approach into the SEEA
Framework of ecosystem natural capital accounts
Classification of stocks and flows of land cover
Classification of ecosystem services
Measurement and valuation of ecosystem services
Measurement and valuation of maintenance and
restoration costs
• Integration into SEEA: MFA, PIOT, NAMEA, Expenditure,
Assets (Forest, Fisheries, Water and forthcoming soil),
valuation, application of E-EA.
• Articulation to SNA (adjustment of net savings, inclusive
gross domestic product, full cost of goods and services)
• Implementation strategy
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Developing the ecosystem approach into the SEEA
Current situation
• SEEA2003 fully integrated with SNA but
• relations to nature are scattered between chapters and unevenly
developed.
• Ecosystems assets are indeed part of SEEA 2003 structure: forest,
water, land and ecosystem accounts, soil (p.m.), fisheries but
• few links exist between these assets, considered more as
inventories than systems.
• “ecosystem service” is not a well identified concept
• Flows between the economic system and the ecosystems are
asymmetric, balancing the economic system (backed up by SNA)
with a mere interface ( “environment” column, “ecosystem inputs”)
• No place for feedbacks
• Unclear measurement of the value of nature
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Developing the ecosystem approach into the SEEA
Improve integration
• Recognize first the interaction of 2 co-evolving systems
• Clarify the concept of natural capital by separating nonrenewable resources (where the rent and its
reinvestment is the interest) from renewable resource
(for which the conservation of critical level of stocks in
good functioning state is main issue).
• Full integration vs. dual integration
• Renew approach of valuation with clear distinction of
values, costs and their role in decision processes
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Developing the ecosystem approach into the SEEA
Flows from ecosystem to economic system
Is this harvesting/extraction
sustainable ?
Harvesting/extraction
Economy
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Sustainable flows from ecosystem to economic
system
Ecoproduct (of cycling and reproductive systems/ capital)
are produced by means of other ecoproducts. The
ecosystem production function includes a surplus
ecoproduct that can be used by the economy. (from
Anthony Friend 2004)
Non-basic ecoproduct
Surplus available for
harvesting/extraction
Basic ecoproduct
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Necessary for
ecosystem reproduction
(conservation of
ecosystem health,
integrity, functions &
services)
Economy
Developing the ecosystem approach into the SEEA
Interaction of 2 co-evolving systems
Trade-off = increased yields against
losses of natural functions and
biodiversity
Non-basic ecoproduct
Surplus available for
harvesting/extraction
Non-sustainable
harvesting/extraction
Basic ecoproduct
Sources: Kling/U Michigan_2005 & Friend/ISEE_2004
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Necessary for
ecosystem reproduction
(conservation of
ecosystem health,
integrity, functions &
services)
Economy
Developing the ecosystem approach into the SEEA
Full integration vs. partial or dual integration
• Full integration of socio-economic and ecological
systems as socio-ecosystems, respecting the properties
of both (such as the general equilibrium of prices and
quantities for the economic system, the resilience for the
ecosystem or the metabolism of the two): Inclusive
Wealth, Enlarged Material Energy Flow (metabolism)
Accounts
• Partial or dual integration doesn’t contradict the
concepts of inclusive wealth or metabolism; it refers to
them as a theoretical background guidance instead;
short term step forward
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Developing the ecosystem approach into the SEEA
Dual integration: 4 main questions
• is the renewable natural capital maintained over time at the amount
and quality expected by the society?  physical measurement of
“quantityquality” in reference to stated social norms
• is the full cost of maintaining the natural capital covered by the price
of goods and services?  measurement of costs not currently
covered for maintaining and restoring domestic ecosystems
(provision for depreciation) and addition to value of goods and
services
• is the full cost of ecosystems services covered by import prices?
 calculation and addition to value of goods and services
• is the total of goods and services supplied to final uses by the
market (and government institutions) and for free by ecosystems,
developing over time?  measure and value free end use
services and add these benefits to GDP
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Accounting for environmental benefits and costs
Costs: the Supply side
Benefits: the Demand side
€
FCGS
GDP
+ Final Use of Ecosystem Services = IDP
IDP
+
(Intermediate consumption)
+
Additional maintenance cost of
the resource
+
Costs of restoration from
ecosystem degradation
+
Full ecosystem cost of imports
Full Cost of Goods &
Services
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Inclusive Domestic Product
€
Final
Services
Ecosystem
Services
€
Costs
Stocks & flows
(quantities)
Resilience/Health
(qualities)
Ecosystem
Assets
Framework of Ecosystem Accounts
Spatial integration
Economic sectors
Ecosystem types
Accounts of flows of ecosystem goods and services
Core accounts of
assets & flows
(by ecosystem types, raw
quantities)
Material/energy flows
Ecosystem Services
(biomass, water, nutrients,
residuals)
• Marketed Ecosystem Services (€)
• Non-market end use ES (physical
units, €)
Supply & use of ecosystem goods and services
(Use of resource by sectors, supply to consumption & residuals,
accumulation, I-O analysis, NAMEA)
Counts of stocks
diversity / integrity
(by ecosystem types, focus
on state, health, resilience,
stress)
Ecosystem Stocks &
State Accounts
Natural capital
• Natural capital stocks, resilience & wealth, distance to objective
(physical units, by sectors)
• Natural capital consumption/maintenance costs (€)
• Ecosystem assets inclusive wealth (€)
Natural Capital Accounts/ living & cycling natural capital
Economic integration
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
€
€
Economic sectors
Framework of Ecosystem Accounts
Spatial integration
Ecosystem types
Accounts of flows of ecosystem goods and services
Core accounts of
assets & flows
(by ecosystem types, raw
quantities)
Material/energy flows
Ecosystem Services
(biomass, water, nutrients,
residuals)
• Marketed Ecosystem Services (€)
• Non-market end use ES (physical
units, €)
Supply & use of ecosystem goods and services
(Use of resource by sectors, supply to consumption & residuals,
accumulation, I-O analysis, NAMEA)
Counts of stocks
diversity / integrity
(by ecosystem types, focus
on state, health, resilience,
stress)
€
Ecosystem Stocks &
State Accounts
Natural capital
• Natural capital stocks, resilience & wealth, distance to objective
(physical units, by sectors)
• Natural capital consumption/maintenance costs (€)
• Ecosystem assets inclusive wealth (€)
Natural Capital Accounts/ living & cycling natural capital
Economic integration
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
€
Stocks & flows
• Spatial systems:
– Land cover (units, zones,
landscape types)
– Rivers, river reaches, catchments
– Coastal systems
– Soil
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•
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•
Biomass (NPP/NEP), Carbon
Nutrients (N,P…)
Water
Species
Other…
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
 Basic
ecosystem
stock
flows
accounts
LEAC/Land cover accounts’ basic framing
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
LEAC: from changes to flows of land cover
2000
Corine land cover typ
1990
Change Matrix
(44x43=1932
possible changes)
summarized into
flows
LCF5
LCF1
LCF2
LCF3
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Land cover flows
LCF1 Urban land management
LCF2 Urban residential sprawl
LCF8
LCF3 Sprawl of economic sites and infrastructures
LCF4 Agriculture internal conversions
LCF6
LCF5 Conversion
from other land cover to agriculture
LCF4
LCF6 Withdrawal of farming
LCF7 Forests creation and management
LCF8 Water
LCF7 bodies creation and management
LCF9 Changes due to natural & multiple causes
Total Consumption of 1990 land cover, km²
No Change
LCF9
Total land cover 1990, km²
LCF1 Urban land management
LCF2 Urban residential sprawl
From Land cover to ecosystem at macro scale:
Net Landscape Ecological Potential 2000, 1 km² grid
NLEP =
(Vegetation+Nature Value)
---------------------------------Fragmentation
Legend
Net LEP 2000
Value
High : 159
Low : 0
Source:
EEA/ETCLUSI
from GBLI,
NATURILIS and
MEFF
Methodology:
EEA/ETCLUSI
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Net Landscape Ecological Potential 2000, aggregated by regions
Legend
Net LEP_NUTS2-3
NLEP2000
18 - 32
33 - 46
47 - 59
60 - 73
74 - 87
88 - 101
102 - 115
116 - 129
130 - 143
144 - 157
Source:
EEA/ETCLUSI
from GBLI/CLC,
NATURILIS and
MEFF
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Methodology:
EEA/ETCLUSI
Change 1990-2000 in Net Landscape Ecological Potential
(NLEP), 1 km² grid
Legend
Change Net LEP 1990 to 2000
Value
High : 118.464
Low : -84.664
Source:
EEA/ETCLUSI
from GBLI,
NATURILIS and
MEFF
Methodology:
EEA/ETCLUSI
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Ecosystem health: counts of health/resilience
Ecosystem Distress Syndrome model: 5 types of
symptoms
– Vigor: e.g. disruptions of nutrients cycling, population
dynamics (loss or excess)
– Organisation, degradation of substrates: e.g.
fragmentation, water stress, change in food chain
– Resilience: e.g. change in species composition
(invasive…), intoxication
– Dependence of systems from artificial input: e.g energy,
water, subsidies
– Capacity of supporting healthy communities: wildlife,
human
Source: David J. Rapport
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Ecosystems services
Nomenclature
of ES
Capital stocks
and functions
Internal
habitat
functions
Land use
functions
Services
Market values
Ecosystem
Services
Market input
Final use of
non
market
ES
Provisioning
x
x
x
Cultural
x
x
x
x
x
x
x
x
Regulating
x
Support
x
Ecosystem
functioning
x
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Physical
measurement
and shadow
prices
Land Use Functions & Ecosystem Services
LUF analysis and mapping
 address cross-cutting issues e.g.:
Urban/Rural, Agro/Environment
 detect & measure ES services = ecosystem
functions which benefit to people, somewhere
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Challenges for implementation
• Classification and measurement
• Geographical scales
The issue is to play with heterogeneous datasets:
• Exhaustive but rather contents-poor geographic datasets,
frequently updated by satellite images
• Exhaustive, contents-rich but rather poorly geographically detailed
socio-economic statistics
• Scattered in situ monitoring of the physical world
• Detailed analysis and modelling of the socio-ecosystems and
valuation of ecosystem services available as case studies
• Time scales
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•
•
•
Time series
Nowcasting
Infra-annual accounts when relevant
Ecological “surprises”
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Work sharing for a fast track implementation/
National level
• Process management: not simply
compilation but learning by doing as well
• Ongoing processes:
– “beyond GDP” type demands
– Evaluation of policies, compensatory
measures, taxes
– Ecosystem assessments in preparation
• Statistical coordination:
– Statistical offices & science
– Statistical offices & mapping agencies
– Statistical offices & environment agencies
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Work sharing for a fast track implementation/
International level
• UN agencies, WB, IMF, OECD (…?)
• MA2 context (e.g. WCMC/UNEP: manual on ES
currently drafted)
• GEO/GEOSS (GMES…) (support regional global
monitoring)
• International conventions (CBD, IPCC, IGBP,
HDP, Ramsar, Desertification… )
• Regional regulations, agreements, conventions
• Key NGOs in the domain (IUCN, WWF, ISEE)
• UNEP-IPES, UNEP-FI
• London group/subgroup + Eurostat +
EEA & scientific expert panel: issue
paper, outline by end 2008
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Addressing ecosystem issues & SEEA recognition
• Forthcoming MA2 (2015) launched by UNEP will include
ecosystem services accounts: will it be SEEA?
• Correlated regional projects like Eureca!2012 for Europe,
and national assessments: ecosystem accounting part of
the assessment
• “Beyond GDP” developments
• Assessment of benefits provided by biodiversity
demanded by the G8+5 in Potsdam, March 2007 as an
input to the Convention on Biological Diversity (CBD)
• Ecosystem and carbon accounting, continuation of the
“Stern report”
• As well demands by business (e.g. UNEP Financial
Initiative) – can we help?
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Thanks!
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Ecosystems
and services
Ecosystem
and services
Use of commodities
& non-produced services
Supply of commodities
Non nature-based
sources of goods
and services
Mostly
negative
feedbacks
Market & nonmarket values
Provisioning
Food, water, fibre, wood, fuel,
medicines
Regulating
Climate, floods, soil formation,
carbon sequestration, air quality,
water quality, pest and diseases
control, pollination, invasion
resistance, habitat provisioning
Cultural
Aesthetics, tourism,
spiritual, education,
research, traditional
knowledge
Supporting
Primary production
Water cycle
Biogeochemical cycles
Stocks & flows, Integrity, Biodiversity
Functional Landscape
LONDON GROUP MEETING
Adapted
2007,
Lomas, 2007
ROME,from
17-19Scholes,
DECEMBER
2007
Maintenance / restoration of natural capital
Insurance value
Spatial integration of ecosystem accounts
Production &
Consumption
Economic
Assets
Infrastructures
& Technologies
Population
Inclusive use of
market & non
market ecosystem
services
Land use
economic & social
functions
Intensity of use &
full maintenance
costs
Ecosystem
services
Atmosphere/
Climate
Ecosystem
assets
Water system
Stocks
Material & energy
flows
Resilience
ECOSYSTEM ACCOUNTS
CORE LAND COVER ACCOUNT
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
Flora & Fauna
Soil
Integrated National Accounts: GDP, Ecosystem
Services & Assets, Monetary & Physical Indicators
Final Use of
Non-Market
Ecosystem
Services
€
GDP
HANPP
(Landscape net
Ecological Potential)
(Human appropriation of
the net primary
productivity)
Ecosystem services
(provisioning, regulating
and socio-cultural services – supply & use)
Ecosystem Assets/ Natural Capital
(stocks, material & energy flows, health/resilience –
Full ecosystem land, water, biomass, biodiversity…)
costs of domestic
products
Full ecosystem
cost of imports
LONDON GROUP MEETING
ROME, 17-19 DECEMBER 2007
LEP
Ecosystem Accounts
EF
(Ecological
Footprint)
MFA/
(Material /
energy
flow accounts)