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Indicators and SEEAW Training Session on the System of Environmental-Economic Accounting for Water (SEEAW) for the Arab Gulf Countries August 25-28, 2008 UN House- Beirut-Lebanon Michael Vardon United Nations Statistics Division 1 Outline • Audience for indicators • Relationship of environment to economy • Pressure-State-Response (Driving forces) • Key questions • Indicators • Characteristics • SEEAW indicators • SEEAW supplementary tables and information • Communication and analysis 2 Audiences for information Public Politicians Indicators Accounting SNA, SEEA, SEEAW Researchers Policy Makers Strategic planners Micro data Indicators are part of communicating information 3 Need to communicate complex information about the relationships between the environment and the economy • Environment provides • Economic resources to production process (e.g. minerals, timber, water, energy) • Non-economic resources to production process as well as other uses for mankind • Environment receives wastes from the economy 4 A model of the relationships between the environment and economy: Pressure – State – Response 5 Concerns over the level impact the economy is having on environment • Depletion of natural resource (e.g. oil, forests, biodiversity) • Degradation of natural resources (e.g. air and water pollution) • Potentially catastrophic effects (e.g. climate change) 6 Questions • Are environmental endowments being used responsibly. • Is their use posing a treat to economic development now? • Will their unchanged use into the future pose future threats? • Who benefits from use, who bares the cost of use? What indicators can help answer the questions, simply and accurately? 7 Indicators need data • Much of the information needed to address these questions can be drawn from the standard SEEAW tables • To answer some questions additional information is needed. In some cases the standard tables can be expanded to include more detailed industry breakdowns or a lower level of geographic reference (e.g. province instead of state) • Some of these data can be drawn from the supplementary SEEAW tables 8 Supplementary tables • SEEAW identified 12 supplementary tables • Most are expansions of the standard tables or re-presentations of some of the data in the standard tables (e.g. the matrix of flows within the economy) • Two new tables are added • Water quality accounts • Social indicators – Access to water and sanitation (the MDG indicators) 9 Further information • The international recommendations for water statistics currently being drafted by the UN will include other data items, not included in the water accounts • The additional data items will support indicators as well as help in the production of the water accounts and the analysis of data in the water accounts 10 Characteristics of indicators • Focus on outcomes • Have an unambiguous 'good' direction • Be supported by timely data of good quality • Be available as a time series • Be sensitive to changes • Be summary in nature; • Be capable of disaggregation • Be interpreted easily by the general reader. Adapted from Measures of Australia’s Progress 2002 http://www.abs.gov.au/AUSSTATS/[email protected]/94713ad445ff1425ca25682000192af2/aa16f6e99c3078bfca256bdc001223f6!OpenDocument . 11 Millennium Development Goals Official list of MDG indicators after the 2007 revision http://mdgs.un.org/unsd/mdg/Host.aspx?Content=Indicators/OfficialList.htm Goal 7: Ensure environmental sustainability 7.4 Proportion of total water resources used NEW INDICATOR 7.7 Proportion of population using an improved drinking water source (formally target 30) 7.8 Proportion of population using an improved sanitation facility (formally target 31) 12 MDG: Target 30 – access to improved drinking water 13 MDG: Target 31 – access to improved sanitation 14 Challenges to monitoring and achieving MDG 7 ‘Countries face many difficulties in monitoring the MDG 7 indicators, as well as in the overall goal of making progress on environmental sustainability.” “Insufficient availability of data and disaggregated data, lack of baseline data to act as references, and uncoordinated data collection inhibit the monitoring of targets set.” Source: Making Progress on Environmental Sustainability, http://www.unep.org/poverty_environment/PDF_docs/mdg7english.pdf 15 MDG 7:Steps for improvement “While the MDG framework is best managed as a group of interrelated targets, MDG 7 warrants particular attention given the weaknesses both in monitoring and in overall progress. This report presents specific steps to be used in tailoring targets and indicators for MDG 7. The steps can be followed in the order offered here or in a different sequence: 1) assess country environmental issues; 2) identify existing priorities; 3) use analytical frameworks to determine additional critical parameters; 4) set country-specific and verifiable targets; 5) select indicators and establish a baseline to track progress; 6) implement monitoring and data gathering systems; 7) analyse and interpret results; and 8) communicate the results to policy makers and the public. Source: Making Progress on Environmental Sustainability http://www.unep.org/poverty_environment/PDF_docs/mdg7english.pdf 16 So for MDG (and other reporting frameworks) we need….. • An analytical framework for understanding the relations between the environment and the economy • Indicators of these relationships • Monitoring and data systems to support the framework and indicators • To be able analyse and interpret results and communicate results to policy makers and the public Environmental and economic accounting provides this! 17 SEEAW and Indicators • The SEEAW standard tables and commonly collected statistics on the population and economy can be combined to produce a wide range of water indicators • Population size and national accounts are two of the most commonly uses sources of other data 18 The SEEAW Indicators (pages 169-183) SEEAW provides an annex on indicators • Water availability • Water intensity and productivity • Opportunities to increase water supply • Cost and price of water supply and wastewater treatment services 19 Additional UNSD Guidance on compiling indicators • As part of the development of the International Recommendations of Water Statistics, UNSD will prepare guidance on the construction of policy relevant indicators • A draft should be available mid-2008 20 Indicators of water availability • Per capita renewable resources • Ratio between Total renewable water resources and population size. (WWDR 2003, Margat 1996) • Annual Withdrawals of Ground and Surface Water as a Percent of Total Renewable Water/Exploitation index • The total annual volume of ground and surface water abstracted for water uses as a percentage of the total annually renewable volume of freshwater. (UN, 2001) • Consumption Index • Ratio between Water Consumption and Total Renewable Resources. (Margat, 1996) 21 Per capita renewable resources from SEEAW Total renewable water resources ________________ Population = SEEAW Asset account 2. Returns + 3. Precipitation + 4. Inflows – 6. Evaporation – 7. Outflows ________________ Population 22 Annual Withdrawals of Ground and Surface Water as a Percent of Total Renewable from SEEAW Withdrawals of ground and surface water ________________ Total renewable water resources SEEAW Physical Use Table 1.i.1 Abstraction from surface water + 1.i.2 Abstraction from ground water ________________ = SEEAW Asset account 2. Returns + 3. Precipitation + 4. Inflows – 6. Evaporation – 7. Outflows 23 Consumption Index SEEAW from SEEAW Physical Supply Table Water consumption ________________ Total renewable water resources = 7. Consumption ________________ SEEAW Asset account 2. Returns + 3. Precipitation + 4. Inflows – 6. Evaporation – 7. Outflows 24 Indicators for water intensity and productivity from SEEAW 1. Water use and pollution intensity (physical units) m3 water/unit of physical output Water use or tons of pollution emitted per unit of output, such as Tons of pollution/unit of --population, physical output --number of households, or --tons of wheat, steel, etc. produced 2. Water and pollution intensity (monetary units) m3 water/value of output Water use or tons of pollution emitted per Tons of pollution/value of output unit of output measured in currency units 3. Water productivity ratios GDP/ m3 water Value-added by sector/m3 water 4. Water ‘pollutivity’ ratios Sector share of pollution/sector share of GDP 25 Indicators for opportunities to increase water supply from SEEA 1. Return flows Quantity of return flows by source 2. Water reuse Reuse water as share of total industry water use Recycled water as share of total water use by sector 3. Losses Losses in abstraction and treatment as share of total water production Unaccounted for losses as share of total water use May distinguish return flows from treated return flows (from municipal and industrial users) from untreated return flows such as agriculture May distinguish reuse of water within a plant from water recycled by municipal water utility Both the amount and the reason for these losses are usually known by the water utility These losses occur for a variety of causes and it is usually not certain how much each cause contributes 26 Indicators for cost and price of water supply and wastewater treatment 1. Supply cost and price of water Implicit water price Volume of water purchased divided by supply cost 3 Average water price per m by industry Volume of water purchased divided by actual payments by that industry Average water supply cost per m 3 by Volume of water purchased divided by cost industry of supply to that industry Subsidy per m3 by industry Average water price minus average water supply cost 2. Supply cost and price of wastewater treatment services Implicit wastewater treatment price Volume of water treated divided by supply cost Average wastewater treatment cost per Volume of wastewater divided by treatment m3 by industry cost for that industry Average wastewater treatment price Volume of wastewater divided by actual per m3 by industry payments for treatment by that industry Subsidy per m3 by industry Average wastewater price minus average wastewater supply cost 27 Indicators of access to and affordability of water and sanitation services 1. Access to water and sanitation services Average daily water consumption by households, differentiating rural and urban households Percent of urban households with access to safe drinking water Percent of rural households with access to safe drinking water E.g. from household expenditure surveys Percent of urban households with access to sanitation services Percent of rural households with access to sanitation services 2. Affordability of water Household expenditures for water as % of total expenditures, differentiating rural and urban Average price of water to households, differentiating rural and urban Average price of water for subsistence agriculture (irrigation and livestock watering) 28 Links between the World Water Development Report Indicators and SEEAW • World Water Assessment Programme 2006 • 21 of 38 Indicators can be directly derived from the water accounts • An 5 indicators can be partially derived • 12 cannot be derived but can be included as supplementary information. Of these • 4 are social indicators (e.g. urban and rural population) • 3 are related to land areas and could be derived from land accounts • 3 are related to energy and could be derived from energy accounts • Remaining 2 relate to ISO 14001 certification 29 Data, accounts, indicators and analysis Indicators Accounting SNA, SEEA, SEEAW Micro data • All of these level are needed to have a complete information system • Because policy makers are not yet familiar with environment accounts, you may find it useful to conduct your own analysis of the accounts or to encourage others to do an analysis 30 Valuation and indicators • Valuation is the most contentious part of environmental accounting • The hybrid accounts are the starting point for valuation • Compile these using standard SNA techniques • Some other approaches are described in Part II of SEEAW • When presenting data and indicators that rely on valuation you must provide some guidance on interpretation Approach issues of valuation cautiously 31 Summary • Indicators are important communication tools. They summarise complex information • Indicators are only as good as the data and accounts that underpin them • Indicators need to be interpreted and analysed in the context of other data • Indicators need to built on solid foundation of data 32 Audiences for information Public Politicians Indicators Accounting SNA, SEEA, SEEAW Researchers Policy Makers Strategic planners Micro data Indicators are part of communicating information 33 Contact details Michael Vardon Adviser on Environmental-Economic Accounting United Nations Statistics Division New York 10017 USA Room DC2 1532 Phone: +1 917 367 5391 Fax: +1 917 963 1374 Email: [email protected] 34