Natural Capital Accounts: A Provincial Perspec4ve

Transcription

1 Natural Capital Accounts: A Provincial Perspec4ve Will Wistowsky, MNRF Senior Economist March 29, 2017 Priori?es and Planning Sec?on, Strategic & Indigenous Policy Branch Policy Division, Ontario Ministry of Natural Resources and Forestry

2 Observa4on What we measure affects what we do; and if our measurements are flawed, decisions may be distorted. Choices between promo;ng GDP and protec;ng the environment may be false choices once environmental degrada;on is appropriately included in our measurement of economic performance. So too, we ocen draw inferences about what are good policies by looking at what policies have promoted economic growth; but if our metrics of performance are flawed, so too may be the inferences that we draw. - (S?glitz, Sen and Fitoussi Report of the Commission on the Measurement of Economic Performance and Social Progress p.7.). 2!

3 3! What is Natural Capital Accoun4ng (NCA)?

4 What is Natural Capital Accoun4ng (NCA) Accoun?ng for the environment! An integrated measurement framework for environmental sta?s?cs Links to economic sta?s?cs Uses coherent concepts, methods and classifica?ons for integra?ng environmental / economic informa?on Indicators Organized accounts Harmonized basic data

5 Why use the System of Environmental- Economic Accoun4ng (SEEA)? - adopted as an interna?onal sta?s?cal standard by the United Na?ons Sta?s?cal Commission in February/ March of has the same status as the System of Na?onal Accounts (SNA), from which key economic indicators such as GDP emerge. - linked to SNA 5!

6 Main Categories of SEEA Accounts Natural asset stock accounts measure quan??es of natural resource assets (minerals,?mber, water, fossil fuels, land and ecosystems) and, where possible, their economic value. Physical flow accounts measure flows of materials and energy from the environment to the economy in the form of natural inputs and flows from the economy back to the environment in the form of waste materials and energy. - generally measured in physical terms but may be combined with economic data from input- output tables to derive efficiency indicators (e.g., energy use per dollar of GDP). Ac4vity/purpose accounts iden?fy environmental transac?ons already captured in the SNA but are hidden because of aggrega?on. They include accounts measuring the produc?on and use of goods and services designed to protect the environment and accounts of taxes, subsidies and other fiscal measures designed to achieve environmental goals. 6!

7 Why is the MNRF Interested in NCA? 7!

8 Environmental informa4on today Is based on many (if any) resource and ecological theories Is oben collected for specific purposes (e.g., one policy, regula?on or indicator) Has lidle sustainable sta?s?cal infrastructure (too many different indicators, classifica?ons and concepts )

9 and ooen isn t sufficient to measure Sustainable development Green economy Climate change (adapta?on & mi?ga?on) Biodiversity, natural heritage Resource produc?vity Externali?es of economic ac?vi?es Consolidated repor?ng

10 Coherent with MNRF mandate - MNRF is responsible for Ontario s economic prosperity, environmental sustainability and quality of life by ensuring the good stewardship of protected areas, forests, fisheries, wildlife, mineral aggregates, petroleum resources and Crown lands and waters - Vision is a healthy and naturally diverse environment that enables and contributes to sustainable development - Mission is to manage natural resources in an ecologically sustainable way to ensure that they are available for the enjoyment and use of future genera?ons

11 and priori4es - Biodiversity management - Natural heritage and protected area management - Crown land, water and non- renewable resource management - Renewable energy - Forestry

12 Lots of data to work with - Ministry data sets - Ontario data sets - Federal data sets The challenge is making all of these data coherent!

13 Lots of poten4al collaborators - Within MNRF - Across the Government of Ontario - At the federal level - In other provinces - In the NGO and private sectors

14 Where to Start?

15 Progression to NCA Project. Individual Studies: Es?ma?ng Southern Ontario Ecosystem Service Values The Economics of Ecosystem Services and Biodiversity Study Parks and Protected Areas Study - Lake Simcoe Socio- economic Assessment - Species at Risk Habitat Analysis - Valuing Nature Policy Lens - Etc ! ! ! A Coordinated Approach: Goal: Advance Natural Capital Accoun?ng and Ecosystem Services in MNRF, via improved tools, coordina?on and policy applica?ons Natural Capital Accoun?ng Scoping Project develop basic Natural Capital Accounts Con4nuous Improvement: looking at new approaches and methods of analysis 15!

16 2017 Core Accounts 1. Land cover account Most of the required data are available Physical extent of different types of land in Ontario Star?ng point for the development of more sophis?cated ecosystem accounts, which are relevant to management of crown lands, biodiversity, natural heritage and protected areas 2. Forest stock account Physical extent (in area and volume terms by species and age- class) and monetary value of Ontario s forests Responds to MNRF s priority to support the sustainable use of forests for a healthy forest products sector and thriving forest- dependent communi?es State of Ontario s Forests report provides many of the data required to implement this account

17 2018 Poten4al Accounts 3. Water stock account (?) Extent of provincial water resources in physical and, where possible, monetary terms (start with hydro reservoirs) Responds to MNRF s priority to manage floods, low water levels and droughts and protect the Great Lakes. 4. Mineral stock account (?) Physical extent and monetary value of Ontario s known mineral reserves Responds to MNRF s priority to manage non- renewable resources Would have to be compiled in coopera?on with the Ministry of Northern Development and Mines 5. Ecosystem accounts(?) Physical extent of select ecosystem types Responds to MNRF s responsibility for managing ecosystem goods and services

18 These accounts - Respond clearly to MNRF s mandate and priori?es - Can be readily compiled using the data holdings available in Ontario and federally - Can be mostly compiled by MNRF under its own mandate and with its own exper?se - Represent a sound founda?on upon which a broader set of NCA for Ontario could eventually be built with a greater cross- ministerial effort

19 Work to Date.

20 Year 1 and 2: Two- year project Agree on priori?es and project ToR Iden?fy financial/human resources Build awareness inside and beyond MNRF Agree on concepts and methods Iden?fy data sources Engage and oversee internal and external experts Develop and deliver training

21 Year 1 Land account developed basic land account Forest account developed physical and monetary (?mber) account

22 Land Cover Account Example - In addi?on to the provincial summary, land cover accounts have been constructed for each ecodistrict and census division in the province. 22!

23 Forestry Account Example - E.g. Timber harvest on Crown Land 23!

24 24! What s Next..

25 Looking to the NCA Future.

26 Opportuni4es to use NCA - Build natural capital into core decision making tools and processes - Macroeconomic modeling at Finance - Collaborate with other provinces to develop a set of provincial natural capital accounts - Collaborate with the federal government to develop inclusive wealth assessment (natural, human, social and economic capital) - Compile OECD green growth indicators for Ontario - Work with Ontario companies to develop mutually beneficial approaches to measuring natural capital

27 Thank You Any Questions? 27!

28 Canada Ø NCA Examples Index of Economic Well- Being, Canadian Index of Well- Being Ø Water Resources Account ( ) S. Canada down 8.5%, Ø Ø Timber Resources Account - Timber Sustainability Index Boreal Ecosystem Wealth Accoun?ng System used NCAs Denmark, Germany Ø Air emission /energy accounts predict emissions from a given level of economic output and vice versa Sweden Ø NCAs to help achieve policy goal to not increase environmental problems beyond its borders Smith, Robert, 2014, Users and Uses of Environmental Accounts A Review of Selected Developed Countries, Washington, DC: World Bank Group ( hdps:// %20Users%20and%20Uses%20of%20Environmental%20Accounts.pdf 28!

29 Mexico Ø NCA Examples legisla?on requires ecologically adjusted GDP Australia Ø Ø Ø Ø Ø emission, energy, environmental expenditure and carbon stock accounts to inform climate change adapta?on / mi?ga?on strategies water intensity = water consumed / Industry Gross Value Added = water to produce one unit of economic output sustainability - non- declining per capital wealth (produced, financial, and natural capital) over?me change in landcover/use, water tourism, biodiversity and tourism accounts to assess policy impacts on PAs NCAs used for Measuring Australia s Progress (MAP) Is life in Australia Gesng Beder? society, economy, environment, governance. 29!

30 Uses of Natural Capital Accounts United Kingdom: NCAs used for Measuring Well- Being: Life in the UK. 10 domains, 43 assessments of well- being. Annual wheel of measures that includes the natural environment. 30!