Overview of forest accounting
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- Norman Horn
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1 Overview of forest accounting Juan Pablo Castaneda, GENDR, World Bank Turkey, March 10, 2015 Wealth Accounting and the Valuation of Ecosystem Services 1
2 Outline 1. The policy agendas at national and global levels 2. Forest accounts in the context of NCA. 3. The accounting framework 4. Filling the tables 5. Where do we get the data from? 6. Valuation 7. A comment on data challenges 2
3 The forest policy agendas 3
4 National agendas Enhance revenues from forests managed as forests (REDD+) Include forest-based income in national income accounts Value forests for food security. Recognize forest-based ecosystem services as input to agriculture. Increase forest productivity (green infrastructure) Increase forest related activities productivity Value forests for adaptation Ensure that appropriation of forest resources is legal Ensure equitable distribution of forest resources Community forest management 4
5 Global agendas Mobilize finance for REDD+ and adaptation Support voluntary private sector commitments to responsible sourcing Remove subsidies for unsustainable biofuels Implement other demand-side policies to provide incentives for legal and sustainable production Legality assurance initiatives Green procurement programs 5
6 Forests in the context of NCA 6
7 Why NCA? Total wealth Flows of capital Benefits (Economy) 7
8 Why forests? Why trees? Misiones, Argentina and Fox Valley Metro Area, USA 8
9 What do we want to measure and how? SEEA Central Framework Two complementary perspectives More consensus SEEA Ecosystem Accounting Less consensus 9
10 The accounting framework 10
11 What is an account? Complexity reduced to relationships (identities) 11
12 The framework Land cover types Scope of the ecosystem based forest account Scope of the resource based forest account Forest land Shared area of analysis Urban land Agricultural land Individual resources Ecosystems Forest land Ecosistema forestal Ecosistema forestal (Mangle) Urban land Agricultural land Ecosistema urbano Ecosistema agricola 12 12
13 General structure of the forest accounts ASSET ACCOUNTS v resource by resource Opening stock of timber resources Additions to stock Natural growth Reclassifications Total additions to stock Reductions in stock Removals Natural losses Catastrophic losses Reclassifications Total reductions in stock Closing stock of timber resources Type of timber resource Natural timber resources Cultivated Not available Available for timber resources for wood wood supply supply Changes of ecosystem condition Vegetation Biodiversity Soil Water Carbon O p e n i n g condition Improvements in conditions Reduction in condition C l o s i n g condition Monetary units Monetary units Opening stock Additions to stock Regeneration-natural Regeneration. human Total additions to stock Reductions in stock Extraction and harvest Catastrophic losses Total reductions in stock Revaluations Closing stock of ecosystem assets Type of timber resources Cultivated timber resources v Cultivated: management practices constitute a process of economic production v forest asset (forest ecosystem unit) v Natural: where the previous doesn t apply. v Not AFWS: due to physical, economic or regulatory reasons Natural timber resources Available for wood supply EAU or LCEU 13
14 General structure of the forest accounts FLOW ACCOUNTS Economic activities: suppliers Products v PHYSICAL UNITS: flow of materials and products / flow of ES v MONETARY UNITS: aggregated value. Economic activities: intermediate and final consumers Products Generation of ecosystem services Suppliers Enterprises Households Government Rest of the world Total Type of ecosystem services (by CICES) Provisioning services Regulating services Cultural services Services Use of ecosystem services Consumers Enterprises Households Government Rest of the world Total Provisioning services Regulating WAVES services Cultural services 14
15 Filling the tables 15
16 General steps to compile the accounts DEFINITION OF THE POLICY QUESTION THAT THE ACCOUNTS HAVE TO ANSWER MAPPING AND ASSESSING THE FOREST AREA AT THE COUNTRY LEVEL Characteriza7on of the forest resources/ forest asset and crea7on of forest ecosystem classes FOREST ASSETS/ RESOURCES - Loca?on - Extent - Condi?on Flow of ecosystem services from the forest asset FLOW OF FOREST ECOSYSTEM SERVICES - Provisioning - Regula?ng - Cultural BENEFITS PROVIDED BY FORESTS - MARKET forest benefits - CONTRIBUTION to other sectors - NON- MARKET benefits Benefits from forest ecosystem services 16
17 Mapping of the forest area & ecosystems Steps proposed by the EEA to define units to account for forest assets Basic Statistical Units BSUs: Basic Statistical Units Min grid resolution info LCEUs Closest to ecosystems Broadleaved primary forest Broadleaved secondary forest EAUs Long-term monitoring Not protected forest Natural park (protected forest) 17 17
18 Spatial relationships between BSU 18
19 Indicators to characterize the forest ASSET Forest land Standing timber Condition of forest ecosystems 19 19
20 Indicators to characterize the forest FLOWS Provisioning services Regulating services Cultural services 20 20
21 Where do we get the data from? 21
22 Where do we get the data from? Forest inventories/forest statistics Main features: v v v v The primary source of quantitative information on forest resources Based on statistical sampling Based on field surveying techniques Basis for planning and assessments at country, regional or global level (e.g. Forest Resources Assessment FRA) 22 22
23 Where do we get the data from? Spaceborne remote sensing Why remote sensing? v v v v v v Dynamic data source of area covered by vegetation Identification of different vegetation types Upgrade forest inventories Information forest condition Geographical reference Constant technological development Example: Land cover classification based on Landsat 8 imagery. Pacific coast; Guatemala 23
24 Forest Modeling Why modeling? v Various indicators of forest assets and flows can not be measured directly. v Particularly useful for deriving indicators of environmental services. v Some examples are: Wild fauna population Erosion protection Surface discharge Carbon sequestration Green area deficit in urban areas 24 24
25 Other sources v v v v v v Livelihood surveys Population census Other statistics, reports, spatial databases etc. SNA à validate Global forest watch (?) Source: Mustonen, S.; Raiko, R.; Luukkanen, J. Bionergy consumption and biogas potential in Cambodian households. Sustainability (5) doi: /su
26 Valuation 26
27 What type of valuation? waves/files/documents/ptec2%20- %20Ecosystem.pdf 27
28 Main principles Not to include consumer surplus in the valuation of ecosystem services. However, it is appropriate to use the change in consumer surplus (=price) times quantity, since this will provide a marginal price. The production function approach or damage costs avoided approach are suitable methods to use.? 28
29 Credibility is the key to valuation? 29
30 A comment on data challenges Based on Seymour,
31 Give time to development 1947 Less information requirements SEEA 1993 SEEA 2003 SEEA More information requirements 31
32 Information on forests has never been better 32
33 or more accessible 33
34 We know what drives forest change 34
35 and can track and respond to change High temporal resolution for near real-time monitoring and response High spatial resolution for accurate measurement of annual deforestation 35
36 Thank you! 36