Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July...

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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 1

Transcript of Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July...

Page 1: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

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

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Page 2: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

A brief history…

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Vegetation policy - “Net Gain”

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• Native Vegetation Credit Register• BushBroker

OFFSETS

• BushTenderINVESTMENT

http://www.dse.vic.gov.au/land-management/victorias-native-vegetation-management-a-framework-for-action

Page 3: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

A brief history…

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Vegetation type, extent and condition mapping

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http://mapshare2.dse.vic.gov.au/MapShare2EXT/imf.jsp?site=bim

Page 4: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

A brief history…

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ecoMarkets• Payments for multiple ecosystem services

EnSym• Environmental modelling

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https://ensym.dse.vic.gov.au/cms/

Page 5: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

More recently…

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Victorian Environmental Partnerships

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http://www.depi.vic.gov.au/environment-and-wildlife/environmental-partnerships

Page 6: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

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Offset reform

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http://www.depi.vic.gov.au/environment-and-wildlife/biodiversity/native-vegetation

Page 7: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

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Victorian Experimental-Ecosystem Accounts

“establish internationally recognisable environmental accounts that improve the way we allocate resources”

(Environmental Partnerships: Priority 8, 2012)

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https://ensym.dse.vic.gov.au/cms/index.php?option=com_content&view=article&id=60&Itemid=71

Page 8: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

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

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Page 9: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

National Statistics

Environment

Economy

System of Environmental-Economic Accounts (SEEA)

SNA

Society

Page 10: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

ASSET

ASSET

ASSET

SEEA Central Framework (CF)

1. 2. 3.

http://unstats.un.org/unsd/envaccounting/seearev/

Page 12: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

Spreadsheets & charts7.16 Economic demonstrated stock of timber, Physical

7.17 Value of timber resources, Monetary

Page 13: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

ASSET

Services

Services

Services

SEEA Ecosystem Accounts

Services

Victorian approach to Ecosystem Accounts

Page 14: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

Victorian Ecosystem accounting concepts

InterFlows (input)

InterFlows (output)

ECOSYSTEM

EcosystemServices (output)

Inputs/Residuals

ECOSYSTEMECONOMY/

SOCIETYIntra flowsIntra flows

Eigenraam et al., 2012

Page 15: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

Gross Ecosystem Product (GEP)

*) Eigenraam et al., 2012

Step Gross Domestic Product (GDP) Gross Ecosystem Product (GEP)*

1 Estimate the Gross Output of various economic activities

Estimate the Gross Ecosystem Output (clean air, water, etc) from an ecosystem asset (sum of ecosystem services and inter flows)

2 Determine the intermediate consumption, i.e., the cost of material, supplies and services used to produce goods or services

Determine the inputs (inter-flows) to the asset, i.e., pollination, habitat, water, nutrients used to produce Gross Ecosystem Output

3 Deduct intermediate consumption from Gross Output to obtain the Gross Value Added (summed for all businesses is GDP)

Deduct inputs from Gross Ecosystem Output to obtain the Gross Ecosystem Product

4 Deduct depreciation from Gross Value Add to obtain Net Value Added

Deduct depreciation (degradation) from Gross Ecosystem Product to obtain Net Ecosystem Product

Page 16: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

Gross Ecosystem Product

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Inter flows (3.5 t/y nutrients)

FORESTInter flows

(2.5 t/y nutrients)

Intra flows

Inter flows (3.5 t/y nutrients) FOREST

Inter flows(1 t/y nutrients)

Intra flows

The ecosystem (FOREST) is improved to process more nutrients

GEP = 2.5 t/y

GEP = 1 t/y

Change GEP = 1.5 t/yEcosystem Service

- Clean water

Page 17: Green GDP – Accounting for Ecosystem Services Mark Eigenraam, Jessica Bowman, Joey Chua 19 July 2013, Prepared for Eco-Forum Global Guiyang, China, 2013.

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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