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VI The System of Environmental Economic Accounting The measurement framework for the environment and its interactions with the economy. Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 1 Outline What is the System of Environmental-Economic Accounting (SEEA)? How is it linked to Qatar’s policy questions and environment statistics? Examples The SEEA Standard Example Water Accounts Conclusions and Recommendations Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 2 What is the System of EnvironmentalEconomic Accounting (SEEA)? Satellite system of the System of National Accounts (2008 SNA) Brings together economic and environmental information in a common framework to measure the contribution of the environment to the economy and the impact of the economy on the environment Provides policymakers with indicators and descriptive statistics to monitor these interactions Provides an information system for strategic planning and policy analysis to identify more sustainable paths of development Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 3 Strengths of the accounting approach Organised body of information facilitates integrated economic-environmental analysis (complements sustainable development indicators, modelling) Comprehensive and consistent, routinely produced Provides a system into which monetary valuations of environmental costs can be incorporated Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 4 Environmental-Economic Accounting and Environment Statistics Environment statistics: Environmental accounts: Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 5 Environmental-Economic Accounting and Environment Statistics Environment statistics: Environmental accounts: • Often developed to answer one particular question or problem • Help to make sense of the larger picture • Difficult to figure out if all information is included • • Help to identify pieces that are missing Not always easy to see the whole picture, or how it relates to other things Typically not integrated with economic statistics • Can make connections to other statistics, especially to economic statistics • Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 6 Key concepts of SEEA Stocks Flows Volume (e.g. tonnes, m3) Value (e.g. $, £, ¥, €) Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 7 Terminology Terminology is not always consistent among economists, environmental statisticians, scientists and policy makers => Need to use a clear, agreed terminology One of the SEEA main contribution is the standardisation of terms and definitions Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 8 Audiences for information… Indicators and Accounts Data users Headline indicators Decision makers & wider public Is there an issue? Indicators Yes Advice Research Indicators on specific subjects or industries Managers SEEA and analysts Analysis Standard tables Supplementary tables Researchers Data items Information Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 9 Information is vital …and it needs to be integrated The economy impacts on the environment and the environment impacts on the economy To understand these linkages we need to integrate environmental and economic information This is the explicit purpose of the SEEA framework Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 10 Using a standard is very important… Organising information within the SEEA framework ensures Consistency (with existing standards eg SNA) Completeness (no gaps, or at least known gaps) Comparability (across time and space) Accountability (industry, governments, households) Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 11 Green Growth QNDS 2011 - 2016 State of Environment Reports (UNEP-ROWA, Arab League) Ecological Footprint MDG Goals Etc. UNSD Environment Questionnaire . Indicators . SNA Analytical & monitoring frameworks (DPSIR, MDG, thematic or issue based Accounting Systems (SEEA) . Environment Statistics of Qatar (Qatari Framework QFES) Environmental data from different sources (statistical and non-statistical) Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 12 Example Water Use in Botswana Index (1993 = 1.00) 1.30 GDP per m3 water 1.25 1.20 1.15 1.10 Volume of water 1.05 1.00 0.95 Per capita water use 0.90 1993/94 1994/95 1995/96 1996/97 1997/98 Environment Statistics Training Workshop, Doha, 23-25 September 2012 1998/99 Page 13 Example Water Use in Botswana Environmental-Economic Profile 60% 50% Water use 40% National income Employment 30% 20% 10% 0% Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 14 Example Qatar: DRAFT (!) pilot water accounts Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 15 Example: Measuring green growth in the Netherlands (2011) Objective: Assess the state of green growth in the Netherlands Benchmark for a more thorough and comprehensive assessment of green growth in the future Point of departure: OECD indicators Data availability Robustness of indicators Relevance for the Netherlands List of 20 relevant indicators Project was completed in only 2 months Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 16 Example: Measuring green growth in the Netherlands (2011) SEEA as a data source Group i ii iii iv Indicator Production-based greenhouse gas intensity Environmental Efficiency Consumption-based greenhouse gas emissions Energy efficiency Renewable energy Surpluses of nutrients Material intensity Water use intensity Waste treatment Stocks of standing timber Natural asset base Fish inputs Natural gas reserves Land conversion into built-up land Threats to biodiversity Environmental quality of life Pollution induced health problems Green patents Policy responses Share of green taxes Energy prices Carbon trade Environmental investments Green jobs Environmental Environmental and energy accounts statistics Other x x x x x x x x x x x x x x x x x x x x Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 17 Example: Measuring green growth in the Netherlands (2011) Development of GDP and key figures Index 1990=100 180 160 140 120 100 80 60 40 20 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 0 Domestic Product (gross, market prices, fixed price level) Net energy use Mineral reserves gas Tap water use Greenhouse gas emissions Fine dust emissions Heavy metals to water Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 18 Example: Measuring green growth in the Netherlands (2011) Results: Scores of the green growth indicators i ii Trend in Policy targets 1 greening growth Group Indicator Time series Environmental Efficiency Production-based greenhouse gas intensity 1990-2009 Y G Consumption-based greenhouse gas emissions 1996; 2007 Y - Energy efficiency 1990-2009 Y - Renewable energy 1990-2009 G R Surpluses of nutrients 1990-2009 G Y Material intensity 1996-2008 Y - Water use intensity 1990-2009 G - Waste treatment 1985-2008 G G Stocks of standing timber 1990-2005 G R Fish inputs 1996-2008 R - Natural gas reserves 1990-2009 R - Land conversion into built-up land 1900-2006 - - Threats to biodiversity 1994-2005 R R Natural asset base iii Environmental quality of life Pollution induced health problems 1980-2000 G - iv Policy responses Green patents 2000-2006 G - Share of green taxes 1990-2009 G - Energy prices 1990-2009 - - Carbon trade 2005-2009 - - Environmental investments 1990-2007 Y - Green jobs 1995-2008 G - Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 19 Example: Measuring green growth in the Netherlands (2011) Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 20 The SEEA Standard Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 21 The SEEA central framework incorporates the following types of accounts. 1. Flow accounts: supply and use tables for products, natural resources, ecosystem inputs and residuals or wastes from economic activities. – physical (e.g. GL of water) and/or monetary values 2. Asset accounts for environmental assets: natural resources, land and ecosystems. – physical and/or monetary values 3. Activity / purpose accounts that explicitly identify environmental transactions already existing in the SNA. – e.g. Environmental Protection Expenditure (EPE) accounts Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 22 SEEA Accounting Topics Physical Flow Accounts: Energy Water Materials: Air emissions, emissions to water, solid waste, economy wide material flows Asset Accounts: Mineral and energy resources Land Soil resources Timber resources Aquatic resources Other biological resources Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 23 SEEA Accounting Topics Environmental Activity Accounts: Environmental Protection Expenditures Environmental Goods and Services Sector Accounts for resource management expenditures Accounting for other transactions related to the environment Water resources + Combined physical and monetary presentations Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 24 Typical policy questions What are the investments in water supply and sanitation services? How are the costs being recovered? Are water resources being used sustainably? Who benefits in the allocation of scarce water resources? What investments are made to reduce pollutant emissions? What is the mix of energy products used? Who are the users of these products? What is the expected (and actual) impact of various policies on the environment and on household and business expenditure? …. Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 25 Example Water Accounts 1. Physical Supply Table Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 26 Example Water Accounts 2. Physical Use Table Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 27 Example Water Accounts 3. Physical Asset Table Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 28 Example Water Accounts 4. Combined presentation for water data Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 29 Example Water Accounts 5. Analysis and Indicators Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 30 Example Asset Accounts for mineral and energy resources Physical Monetary Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 31 Conclusions and Recommendations SEEA is a standard for integration of environmental and economic information Integrating environmental and economic information is vital for informed, sophisticated decision-making SEEA is an internationally recognised standard explicitly designed for this purpose SEEA enables a wide range of issues to be studied, including sustainability, well-being and green growth For Qatar almost all modules are relevant for questions related to Green Growth and Sustainability; timber accounts are probably not relevant In relation to QNDS 2011-2016 the following type of accounts seems to have priority for implementation: Water, emissions to water, air emissions, energy, waste, environmental protection expenditures Environment Statistics Training Workshop, Doha, 23-25 September 2012 Page 32 Thank you for your attention! 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