System of Environmental-Economic Accounting

System of Environmental-Economic Accounting

Subject: Environment

Section: Climate change

System of Environmental-Economic Accounting:

• System of Environmental-Economic Accounting (SEEA) framework has been used to measure the links between environment, economic and societal well-being.
• SEEA has two parts, the central framework and ecosystem accounting; the latter includes services provided by ecosystems, tracking changes in ecosystem assets and linking this to human activity.
• It contains the internationally agreed standard concepts, definitions, classifications, accounting rules and tables for producing internationally comparable statistics and accounts.
• The SEEA framework follows a similar accounting structure as the System of National Accounts (SNA).
• The framework uses concepts, definitions and classifications consistent with the SNA in order to facilitate the integration of environmental and economic statistics.
• It is a flexible system that can be adapted to countries’ priorities and policy needs while at the same time providing a common framework, concepts, terms and definitions.
• While these frameworks have been largely applied to land ecosystems, they are now increasingly being applied to marine ecosystems through ocean accounting.
• In fact, the Ministry of Statistics and Programme Implementation (MoSPI) which has so far been focusing on land accounts, has called for expanding the coverage of the accounts to include ocean accounts in its strategy for the next half decade.

NCAVES (National Capital Accounting and Valuation of Ecosystem Services):

• NCAVES (National Capital Accounting and Valuation of Ecosystem Services) project is an important initiative aimed at integrating natural capital and ecosystem services into national accounting frameworks.
• The main objective of the NCAVES project is to develop and implement a comprehensive framework for natural capital accounting and valuation of ecosystem services. It seeks to enhance the understanding of the economic value of natural resources and ecosystem services and their contribution to the national economy.
• The NCAVES project is implemented by the United Nations Statistics Division (UNSD) in collaboration with various national governments. It provides technical support, capacity building, and guidance to countries in developing natural capital accounting systems and integrating them into their national statistical frameworks.
• The project covers a wide range of ecosystem services, including provisioning services (such as food, water, and timber), regulating services (such as climate regulation and water purification), and cultural services (such as recreation and cultural heritage).
• The NCAVES project promotes the use of standardized methodologies and frameworks for natural capital accounting. It emphasizes the measurement and valuation of ecosystem services, using both market-based and non-market-based approaches. The project provides guidance on data collection, classification, and accounting techniques to ensure consistency and comparability across countries.
• The NCAVES project is part of the broader global movement towards natural capital accounting and valuation of ecosystem services. It aligns with international initiatives, such as the System of Environmental-Economic Accounting (SEEA) and the United Nations’ Sustainable Development Goals (SDGs).

Ocean Account:

• Ocean accounts as “integrated records of regularly compiled and comparable dataconcerning ocean environment assets (e.g., extent/condition of mangroves), economic activity (e.g., sale of fish) and social conditions (e.g., coastal employment).”
• The objective of ocean accounts is to provide a framework for capturing the economic value of marine resources and the services they provide, as well as the associated environmental impacts.
• It aims to promote sustainable management of oceans by incorporating their economic and ecological dimensions into policy and decision-making.

Global Ocean Accounts Partnership:

• Global Ocean Accounts Partnership (GOAP) is an international initiative that aims to promote the implementation of ocean accounts worldwide. It brings together governments, international organizations, researchers, and other stakeholders to collaborate on the development and dissemination of ocean accounting methodologies and tools.
• The primary objective of GOAP is to support countries in implementing the System of Environmental-Economic Accounting for the Oceans (SEEA-O), which is a framework for measuring and valuing the economic and environmental aspects of marine resources and activities.
• GOAP aims to build capacity, share knowledge and best practices, and facilitate the integration of ocean accounts into national statistical systems.
• GOAP is a partnership between multiple organizations, including the United Nations Statistics Division (UNSD), the United Nations Environment Programme (UNEP), the Food and Agriculture Organization of the United Nations (FAO), and the World Bank.
• It helps countries improve their understanding of the economic significance of marine resources, assess the environmental impacts of ocean-related activities, and make informed decisions for sustainable ocean management.