NATURAL CAPITAL ACCOUNTING IN BOTSWANA

Transcription

1 NATURAL CAPITAL ACCOUNTING IN BOTSWANA 1

2 Introduction Institutional arrangement Data sources/providers Methodology Results Ongoing work/ future plans Challenges Conclusion/Recommendations 2

3 OVERVIEW OF NCA IN BOTSWANA Botswana embraced NCA following the outcome of the Gaborone Declaration for Sustainability in Africa (GDSA) in NCA prioritized for: water, minerals and energy resources, including compilation of macroeconomic indicators of sustainable development. Capacity building and a process to institutionalize the accounts was led by Government, with support from the World Bank, through the Wealth Accounting and Valuation of Ecosystem Services (WAVES) programme. WAVES is a global partnership led by the World Bank that aims to promote sustainable development by mainstreaming natural capital in development planning and national economic accounting systems. WAVES support ended in June

4 The NCA project is coordinated at national level by the Ministry of Finance and Economic Development (MFED). The National Steering Committee oversees the overall implementation of NCA in Botswana. Implementation of NCA activities is carried out at sectoral level by the Ministries of; Land Management, Water and Sanitation Services; Environment, Natural Resources Conservation and Tourism; Mineral Resources, Green Technology and Energy Security; and Finance and Economic Development. These Ministries are responsible for compiling accounts for water; minerals; energy; and Macroeconomic Indicators of Sustainable Development. NCA Units in all implementing sectors - responsible for the actual development of the accounts. Multi-sectoral TWGs - assist in timely supply of relevant data and provide technical input in the analysis of the results generated by various component accounts. 4

5 BOTSWANA INSTITUTIONAL STRUCTURE Botswana Ministry of Finance and Economic Development-Permanent Secretary Liaison & coordination of NCA at national level World Bank WAVES Program (Liaison on policy & technical support) Division of Economic & Financial Policy Secretary for Economic & Financial Policy Deputy Permanent Secretary, Macroeconomic Policy (Chairman of NCA PSC) Macroeconomic Policy Section Natural Capital Accounting Unit (Secretariat & coordination of NCA + other Macro Policy Sectional functions) Chief Economist, Assistant Economist Water Accounts TWG Department of Water Affairs (Water Accounting Unit-4) Energy Accounts TWG Department of Energy Modelling & Statistics Unit (3) Mineral Accounts TWG Botswana Geoscience Institute Tourism Sector Statistics Committee/TWG Department of Tourism (2) Macroeconomic Indicators of Sustainability Macroeconomic Policy Section (5)

6 DATA SOURCES/ PROVIDERS Data Providers Statistics Botswana Mining Companies Botswana Power Corporation Water Utilities Corporation Ministry of Agriculture Bank of Botswana etc Conducting Surveys Irrigation surveys Energy use survey

7 Natural Capital Accounting in Botswana adopted the UN methodology of the System of Economic and Environmental Accounting (SEEA). SEEA central framework is a multipurpose conceptual framework for understanding the interactions between the environment and the economy. SEEA-Water;- contains standard concepts and methods for Water Accounting. Assets account Physical Supply and Use tables SEEA-Energy;- multi-purpose framework which organizes energyrelated statistics. 7

8 Each accounting component has made substantial progress so far: Water Accounts (DWA) 4 technical reports produced, covering 2010/ /16. Assets Accounts and Physical Supply and Use Tables. Mineral Accounts (BGI) 2 reports economic rent for diamonds, copper/nickel, coal, gold & soda ash. Energy Accounts (DOE) 1 report, 2015 accounts for electricity & coal; prospects for liquid fuels like petrol, diesel, etc. in future. Tourism Accounts (DOT) Scoping study done. Relevant data has been collected. Support needed to capacitate the accounting team on the development of the accounts. Macroeconomic Indicators of Sustainable Development (MPS, MFED) : 3 reports produced. Besides Technical report; Policy briefs, case studies and academic papers have been produced by various NCA teams. 8

9 Informing policies. Accounts and associated case studies used as guide for: Raw water abstraction strategy project. Catchment management committees. NWMP Review. Monitoring of SDGs i.e Water accounts SDG 6 Establishment of (better) linkages between key stakeholders. Better management of natural resource 9

10 Water consumption by economic sector, , and (MCM) / / / Agriculture Mining Electricity Government Other Industries Households 10

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12 Trends in Electricity production, imports and Use (MWh) 12

13 Most imported electricity came from South Africa, not more than 25% is imported from other neighbouring countries such as Namibia, Zambia and Zimbabwe. Domestic production has grown during the period 2010/11 to 2014/15 whilst imports were declining during that period This was due to policy shift from least-cost energy supply to extended selfsufficiency, which led to significant investment in domestic power generation infrastructure. With regards to domestic supply- most power supply came from Morupule A in In 2012, power station started experiencing maintenance problems which resulted on realince on Morupule B from that period to date 13

14 Covers five mined commodities - diamond, copper-nickel, soda ash, gold and coal Diamonds contribute to the highest value of our mineral assets by 97%, followed by soda ash at about 3% and gold less than 1%. Botswana Mineral assets Value Contribution 14

15 Aggregating all the minerals, generally the lifespan of most of Botswana s mines (notably diamond mines) is relatively long, the depletion component is in turn relatively small. 15

16 The life of diamond mining in Botswana has been extended to more than 50 years due to the new discoveries made by Debswana in Soda ash mining is estimated to continue for the next 35 years provided the extraction is kept constant on the available reserves. Should production increase, its reserves will be depleted faster. Gold reserves are being depleted and mining will only go on for the next 13 years. Irrespective of the huge resources of coal, it is not generating any value. Beneficiation of coal to improve its value is important. Copper nickel has been mined without any profit since 2011 to It is very sensitive to changing commodity prices. However, the situation may change if the newly established Khoemacau copper silver mine in the Northwestern can do better when it starts mining ( to be included on the 2016/2017 update). 16

17 P Million National Wealth by Asset class Years produced Capital financial Capital Human Capital Natural Capital In early 1990 s, Botswana s wealth was driven by natural capital Natural capital - surpassed by produced capital in 2007 Financial capital is the third largest contributor towards total wealth from human capital contributed the smallest share from 1994 up to 2010 From 2011, human capital surpassed financial capital becoming the third largest contributor up to

18 Annual updating of Water, Mineral and Energy Accounts and Macroeconomic Indicators of Sustainable Development. Sensitisation workshops held annually. Technical reports produced annually. Expansion of the existing Accounts to include monetary accounts for Water And Energy. Expansion of NCA work in Botswana compilation of Ecosystem, Tourism, Land and Livestock Accounts. 18

19 Lack of funds to expand NCA work in Botswana. Inclusion of Liquid fuels for Energy. Expanding the scope to include Tourism, Land and Ecosystem Accounts. Expansion of Water Accounts to include full monetary accounts, ground water stocks and soil moisture experimental accounts. Data Scarcity- e.g Groundwater data, Waste water baseline Data management platform. Institutionalization of accounts in various departments. 19

20 Updating of the accounts progressing well. Need to establish community of practitioners, to share ideas and experiences. Botswana seeking support to establish other accounts. 20

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