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Towards Green Economy (GE) & Green Growth (GG) EEA/Scientific Committee Workshop: 5 October 2011; EEA, Copenhagen Presentation-6: Measuring Progress of the Green Economy Ecosystem Capital Accounts for Measuring Progress Towards Green Economy & Green Growth Jean-Louis Weber Special Adviser on Economic-Environmental Accounting European Environment Agency [email protected] Towards Green Economy (GE) & Green Growth (GG) EEA/Scientific Committee Workshop: 5 October 2011; EEA, Copenhagen Presentation-6: Measuring Progress of the Green Economy • 1. How can ecosystem accounting help on measuring progress? • 2. Why a simplified approach? • 3. What are the most relevant indicators that can be derived from the accounts? • 4. How can we make the links between ecosystem capital and ecosystem services? • 5. How to relate back to the system of national accounts and GDP? Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Recurrent demands for improved economic indicators and aggregates • Historical pioneer “green accounting” projects: Norway, Canada, France, Philippines, Indonesia, the Netherlands, Spain… • Rio1992, Agenda 21 • UN SEEA1993 to “adjust” the UN System of National Accounts. SEEA revised in 2003 • New SEEA revision by2012/13, including now a special volume on ecosystem accounts and valuation • Recent initiatives: – – – – Beyond GDP Conference 2008 Potsdam 2008 G8+5 initiative and TEEB Stiglitz/ Sen/ Fitoussi report on the measurement of economic performance 2009 New CBD Aishi-Nagoya Strategy 2010: demand for the inclusion of biodiversity and ecosystem value into national accounts – World Bank’s WAVES Global Partnership for “Green Accounting” and Ecosystem Valuation – References to environmental accounts for measuring progress in Green Economy, Green Growth, Resource Efficiency… • Initiative(s) in preparation for Rio+20 • In Europe, new Regulation on Environmental Accounts: Eurostat (the economyenvironment interface) and the EEA (ecosystem capital accounts) Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 UN manual for environmental-economic accounting: SEEA2003 Enlargement of the System of National Accounts Revision SEEA2012/13 Impacts on ecosystem capacity of Natural resources Ecosystems delivering services/benefits Economic Non-economic assets (SNA) assets Opening stocks SNA transactions and other flows Changes in stocks Closing stocks Opening stocks Opening Volume 2 State Volume 1 The SNA satelliteEconomic Ecosystem capital Changes for theactivities, Changes accounts accounts in stocks natural in state environment processes, expenditure, taxes, hybrid accounts, physical flows, Closing sub-soil, energy, water, land, stocks economic assets depletion Ecosystem stocks and quality, ecosystem services, benefits and maintenance Closing costs… etc. state Described in SNA Negative feedbacks of ecosystem degradation on production and wellbeing RM HASSAN - UN The System of Environmental and Economic Accounting (UN 2003) RANESA Workshop June 12-16, 2005 Maputo Accounting for the performance(s) of 2 co-evolving systems: resources, productivity and health Economic system Economy performance Fossil energy & materials Biomass/carbon Ecosystem Water Economic growth Use of natural resources Land functional services Products & economic assets Trade Value-added, income, profit… Consumption Investment Wealth (non-financial and financial assets) Economic health (net savings, assets and debt quality, accountability, prices, well-being, knowledge) Ecosystem potential (capacity to deliver services) Ecosystem productivity Flows Accumulation Stocks Ecosystem health (biodiversity, integrity, resilience, interdependence) Capital maintenance (to remediate degradation) The narrative behind Ecosystem Capital Accounts: 1- Ecosystems deliver altogether multiple services Source: Gilbert Long, 1972 A propos du diagnostic écologique appliqué au milieu de vie de l'homme. Options Méditerranéennes, 13 , CHIEAM, Montpellier, Juin 1972 Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 The narrative behind Ecosystem Capital Accounts: 2- Only a surplus is accessible for human use Ecoproduct (of cycling and reproductive systems/ capital) are produced by means of other ecoproducts. The ecosystem production function includes a surplus ecoproduct that can be used by the economy. (from Anthony Friend 2004) Non-basic ecoproduct Surplus accessible for harvest/abstraction Basic ecoproduct Sources: Kling/U Michigan_2005 & Friend/ISEE_2004 Necessary for ecosystem reproduction (conservation of ecosystem health, integrity, functions & services) Economy The narrative behind Ecosystem Capital Accounts: 2- Only a surplus is accessible for human use Challenge = maximise yields while maintaining natural functions and biodiversity Possible compensation = artificial input (irrigation, energy, fertilizers, infrastructures…) Non-basic ecoproduct Surplus accessible for harvest/abstraction Non-sustainable harvest/abstraction Basic ecoproduct Sources: Kling/U Michigan_2005 & Friend/ISEE_2004 Necessary for ecosystem reproduction (conservation of ecosystem health, integrity, functions & services) Economy Natural resource: availability, appropriation, accessibility • Available resource: the total resource (actual stocks and flows) which can be used in principle (but should to be shared between economy and nature…). • Appropriated resource: the share of the total potential resource flows (flows which would be available in an ecosystem in the absence of human activities or flows from managed ecosystems) which is used (abstracted, harvested or destroyed during harvest). N.B.: Once used, the resource is considered as appropriated in total, even though one part is returned to the ecosystem. • Accessible resource: the surplus (actual stocks and flows) which can be used considering 1) physical constraints (timeliness and location, cyclical risks, biochemical quality) & 2) the amount to be left to nature for ecosystem reproduction. N.B.: When returned to the ecosystem (leftovers in agriculture or forestry, water returns…) the resource destroyed or modified during the production process becomes accessible again. Ecosystem capital accounts refer to accessible resource and intensity of use. Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Accessible resource: carbon/biomass, freshwater, functional services Accessible resource = Stocks (soil, forests, aquifers, reservoirs, landscapes…) Plus/minus change in stocks (from the previous year) Minus inaccessible stocks Physical inaccessibility (deep aquifers …) Inappropriate quality (salted or polluted water, non arable land…) Plus flows (NPP, effective rainfall…) Minus inaccessible flows Physical inaccessibility (most of flood water, distance, non transportable resource, timeliness issues, water evaporated by irrigation…) Inappropriate quality (polluted water) Maintenance of stocks (soil carbon, forests, aquifer level, dilution of pollutants in rivers…) Plus/minus adjustment for stress, risk Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Example of accessible water adjustment: occurrence of soil water stress Number of days when no water was available for plants in 2001, 1 km^2 grid Source: Blaz Kurnik, EEA, 2011 Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 The narrative behind Ecosystem Capital Accounts: 3 – Ecosystem capital produces altogether 3 broad types of services between which there is no compensation nor tradeoff: biomass/carbon AND freshwater AND functional services. Ecosystem capital potential (& degradation) can be measured by combining measurements of these 3 broad services (accessible resources). Accessible carbon surplus Total Ecosystem Capital Potential Accessible & ecosystem functional Ecosystem Capital services Degradation Accessible water surplus Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Ecosystem Capital Depreciation (€) The narrative behind Ecosystem Capital Accounts: 4 – The simplified ecosystem Non-paid costs needed capital accounting circuit to remediate ecosystem degradation (€) Ecosystem degraded by over-use (j) Healthy ecosystem deliver services to the economy & to the public well-being j National Income, Adjusted capital consumption Final demand at full priceat Final Consumption Adjusted net domestic product (or Purchasers’ price net national income) ES based economic benefits (€) j j Ecosystem assets/capital (j) Jean-Louis Weber Adjusted macro GDP, economic aggregates EEA Scientific Committee Workshop 5 October 2011 ES based economic benefits (€) ES based economic benefits (€) Economic system (including natural assets & ecosystem services (j and €) Estimation of ecosystem capital depreciation: 2 possible ways Assets j t1 j t2 Flows j j (-) Physical accounts of E-services Calculation of unit costs Valuation of E-services € € NPV & addition Assets € j Account of pressures responsible of degradation j Valuation of E-services NPV & addition (-) t2 - t1 Jean-Louis Weber Degradation of ecosystem capital Physical accounts of E-services j € t2 - t1 € € € Estimation of ecosystem capital depreciation… …based on remediation costs …based on assets values EEA Scientific Committee Workshop 5 October 2011 Assessment of remediation costs by issues & € addition From theory to statistics and accounts Theoretical background (very incomplete…): – – – – – – – – – – – – – – – Georgescu-Roegen (The Entropy Law and the Economic Process (1971), Odum (emergy) Resource depletion: Hotelling, El Serafy System approach : Joel de Rosnay (The macroscope, 1975) Dissipative structures: Prigogine (The New Alliance, 1986) L'économique et le vivant: René Passet (1977) Natural resource economy: Naredo (1987) Urban metabolism: Duvignaud Global biotic regulation: Gorshkov Co-evolving systems: Norgaard Ecosystem services: Long (1972), Costanza and De Groot, Millennium Ecosystem Assessment (2003) Interaction between scales: Hollin (“panarchy”) Landscape ecology (UK) Ecosystem units: socio-ecological systems (Gallopin, Carpenter, Rockström, MA2003…) Ecosystem health (D. J. Rapport), resilience (the Resilience Alliance) from economic-ecological theory to statistical practice and accounts : statistical units and classifications Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 From economic-ecological theory to statistical practice and accounts statistical units & classifications Source: Joel de Rosnay, The Macroscope http://pespmc1.vub.ac.be/MACRBOOK.html Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Main relations between classifications & statistical units in the revised SEEA Ecosystems: Socio-ecological landscape units (SELU) (terrestrial, marine & atmospheric) Land Cover: biophysical land units Monetary Statistics of Products Land Functions & Ecosystem Services (from UNCEEA 2009 – EEA & FAO) Physical Statistics of Products Land Use: productive land functions Institutional & Production Units Land Ownership (sectors & industries) (private & public) SNA & SEEA: economic and ecosystem assets x O N Adapted from Ivo Havinga and Daniel Clarke, 2011 x O O O N explicitly recorded as economic asset partly or indirectly recorded as economic asset not recorded, externality x x O O O N x O x O O N Intangible assets (contracts, licences…) Mineral and energy reserves Land Other products Inventories Cultivated biological resources O O N x O Water and other natural resources O x x x Noncultivated biological resources x Machinery and equipment Assets hold by ecosystem units (forests, agro-systems, wetlands…) Land Land cover systems Biomass/carbon Water Biodiversity Self regulating capacity Health, overall regenerative capacity Dwellings & other buildings and structures Assets hold by economic units (enterprises, government bodies, households…) Produced assets Non produced assets O Common International Classification of Ecosystem Services (draft EEA, UNEP & UNSD) Theme Class Group Terrestrial plant and animal foodstuffs Nutrition Freshwater plant and animal foodstuffs Marine plant and animal foodstuffs Potable water Provisioning Materials Energy Regulation of wastes Biotic materials Abiotic materials Renewable biofuels Renewable abiotic energy sources Bioremediation Dilution and sequestration Air flow regulation Flow regulation Water flow regulation Mass flow regulation Regulation and Maintenance Atmospheric regulation Regulation of physical environment Water quality regulation Pedogenesis and soil quality regulation Lifecycle maintenance & habitat protection Regulation of biotic environment Pest and disease control Gene pool protection Symbolic Cultural Intellectual and Experiential Aesthetic, Heritage Religious and spiritual Recreation and community activities Information & knowledge CICES: Table E.2: Proposed Thematic, Class and Group Structure – source: EEA & Roy Haines-Young, Presented at UNCEEA 2010 Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Land cover classification based on FAO LCCS3 Land Cover Types (SEEA vol. 1) Code Title 01 Artificial surfaces (including urban and associated areas) 01.a Artificial surfaces from 10 to 50 % 01.b Artificial surfaces from 51 to 100 % 02 Herbaceous crops 02.a Small size fields of herbaceous crops rainfed 02.b Small size fields of herbaceous crops irrigated or aquatic (rice) 02.c Medium to large fields of herbaceous crops rainfed 02.d Medium to large fields of herbaceous crops irrigated or aquatic (rice) 03 Woody crops 03.a Small size fields of woody crops 03.b Medium to large fields of woody crops 04 Multiple or layered crops 05 Grassland 05.a Natural grassland 05.b Improved grassland 06 Tree covered area 06.a Tree covered area from 10 to 30-40 % 06.b Tree covered area from 30-40 to 70 % 06.c Tree covered area from 70 to 100 % 07 Mangroves 08 Shrub covered area 08.a Shrub covered area from 10 to 60 % (open) 08.b Shrub covered area from 60 to 100 % (closed) 09 Shrubs and/or herbaceous vegetation aquatic or regularly flooded 09.a From 2 to 4 months 09.b More than 4 months 10 Sparsely natural vegetated areas 11 Terrestrial barren land 11.a Loose and shifting sand and/or dunes 11.b Bare soil, gravels and rocks 12 Permanent snow and glaciers 13 Inland water bodies 14 Coastal water bodies and inter-tidal areas 14.a Coastal water bodies (lagoons and/or estuaries) 14.b Inter-tidal areas (coastal flats and coral reefs) Source: FAO (DiGregorio and Ramaschielo) & EEA (Steenmans & Weber) 2011 Jean-Louis Weber and derived Land Cover Functional Units (SEEA vol.2) zoning 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Urban and associated developed areas Medium to large fields rainfed herbaceous cropland Medium to large fields irrigated herbaceous cropland Permanent crops, agriculture plantations Agriculture associations and mosaics Pastures and natural grassland Forest tree cover Shrubland, bushland, heathland Sparsely vegetated areas Natural vegetation associations and mosaics Barren land Permanent snow and glaciers Open wetlands Inland water bodies Coastal water bodies Sea (pro memory) provisional sampling, EEA Scientific questionnaires Committee Workshop 5 October 2011 Ecosystem accounting and statistical units (continued) SNA’s statistical units don’t record ecosystem degradation need for other units… Theoretical units vs. observation units (proxies for collecting data) • Theoretical units: characteristic systems into which natural and socioeconomic elements interact to transform ecosystem functions into goods and services: – Functional units producing elementary services – “Socio-ecological systems”, “socio ecosystems” or “Socio-ecological production landscapes” (the Japanese satoyama and satoumi) • Observation units: – For which we can collect data in a systematic way – Mostly surface units: “geo-systems”, land cover units, functional administrative units, ownership units… Japan Satoyama Satoumi Assessment, 2010. Satoyama-Satoumi Ecosystems and Human Well-being: Socio-ecological Production Landscapes of Japan – Summary for Decision Makers. United Nations University, Tokyo, Japan. Ecosystem statistical units for land: LCFU and SELU Land cover functional units (LCFU) & Socio-ecological landscape units (SELU) ZOOM: SELU in Central Europe ZOOM: Land cover functional units by SELU Ecosystem-Economy integrated accounts Economy Ecosystems PHYSICAL BALANCES Stock Natural production USE OF ECOSYSTEM RESOURCE Extraction/ harvesting Extraction/ harvesting Returns/ Formation (sectors) Returns/ Formation Final Consumption (sectors) Final Consumption Natural consumption Storage/Accumulation USE OF FOSSIL RESOURCE … EMISSIONS, RESIDUALS Stock QUALITY/HEALTH INDEXES Vigour Stability, integrity Resilience LINKAGE TABLES From resource From fossil resource EXPENDITURES Taxes, voluntary payments To land accounts To water accounts Actual To biodiversity indexes Virtual (embedded) SEEA Part 2 Jean-Louis Weber IMPORTS-EXPORTS SEEA Part 1 EEA Scientific Committee Workshop 5 October 2011 Analytical and reporting units, classifications Tables by Ecosystem Units The draft framework Countries and biophysical geographical breakdowns or administrative regions Tables by Economic Units Countries and administrative regions or biophysical geographical breakdowns Ecosystem statistical and accouting units: socio-ecological landscape units, elementary functional units (land cover, river reaches…), ecosystem assets, ecosystem service units Economic statistical and accouting units: institutional units, establishments, economic assets, commodities [A] Land cover stocks and flows basic account : Gross and Net Land Cover Change Land use statistics Physical supply and use tables & economic assets accounts. Agriculture, forestry & fishery statistics [B] Ecosystem Capital Carbon/biomass Account: Net Ecosystem Carbon Balance (NECB) & Net Ecosystem Accessible Carbon Surplus (NEACS) Basic accounts Basic accounts [C] Ecosystem Capital Water Account: Total Ecosystem Accessible Fresh Water (TEAW) & Net Ecosystem Accessible Fresh Water Surplus (NEAWS) Physical supply and use tables & economic assets accounts. use statistics Water [D] Landscape green infrastructure accounts : Landscape Ecosystem Potential (LEP), Green Accessible Landscape Infrastructure (GALI) & Rivers Ecosystem Potential (REP) [E] Ecosystem Capital Biodiversity Account: Synthesis tables in physical units Ecosystem Total Potential Biodiversity Infrastructure Integrity (BII) & Ecosystem's Biodiversity Rating (EBR) [F1] Ecosystem Total Potential Account, Net Change & Ecosystem Capital Degradation (ECD), in Ecosystem Potential Unit Equivalents (EPUE) [F2] Account of Territorial Ecosystem Capital Degradation (TECD) by Stress Factors (in EPUE) Polluting emissions and waste generation by sectors Agriculture, forestry & forestry statistics, Land use accounts [G] Demand and Accessibility to Ecosystem Services : Ecosystem Carbon/biomass per capita, Ecosystem Fresh Water per capita, Green Infrastructure Neighbourhood Ecosystem Services (GINES) Ecosystem Depreciation [H] Ecosystem Physical Balance Sheet: Stocks and Change of Physical Assets & Physical Liabilities, in EPUE Monetary accounts [I] Estimation of unit costs of ecosystem capital restoration by Stress Factors Environmental protection and management expenditure (part) [J] Ecosystem Capital Depreciation: Territorial Consumption of Ecosystem Capital in money [K] Account of Ecosystem Capital Degradation & Depreciation Embedded into Imports and Exports, in EPUE & in money [L] Account of Macro-economic Benefits induced by Sustainable Ecosystem Services : Degradation-Adjusted Total Induced Value Added (by SELU & ISIC) Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 [M] Economic aggregates and additional adjustments for CEC, in money: Gross Domestic Consumption of Ecosystem Capital (GDCEC), GDCEC Adjusted Net Domestic Product, Final Consumption at Full Price (including GDCEC) [N] Ecosystem Financial Balance Sheet: Change of Financial Assets and Stocks and Change of Financial Liabilities Jean-Louis Weber 22 September 2011 The basic accounts by ecosystem units Jean-Louis Weber by economic sectors EEA Scientific Committee Workshop 5 October 2011 The synthesis tables by ecosystem units Jean-Louis Weber by economic sectors EEA Scientific Committee Workshop 5 October 2011 The monetary accounts by ecosystem units by economic sectors N Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 About ecological debts… Bertrand de Jouvenel 1968: “Because National Accounts are based on financial transactions, they account nothing for Nature, to which we don’t owe anything in terms of payments but to which we owe everything in terms of livelihood.” • • • • • • Territorial CEC is a debt to national future generations, it is not transferable CEC Embedded into imports and exports are both debts and should not be consolidated Gross Domestic CEC = Territorial CEC + Imported CEC [meaning: CEC of Production] Net Domestic CEC = Gross Domestic CEC – Exported CEC [meaning: CEC of Final Consumption] Physical Debts and Monetary Debts are recorded separately Consolidation rules for debts: – Physical debts are not transferable – When created by physical debts, monetary debts are not mechanically extinguished by repayment but by the extinction (remediation) of the physical debt itself; – Because physical ecosystem capital assets are not valued, monetary debts cannot be consolidated with monetary ecosystem non-financial assets; – Monetary debts can be consolidated with financial ecosystem capital assets in the context of international mitigation systems if they include initial allocations of (non transferable) ecosystem capital rights and/or recording systems for ecosystem improvement and consolidation rules. – The physical counterparts (units: Ecosystem Potential Unit-Equivalents) of approved allocations and improvement s are not transferable. However they can be leased to ecological debtors (countries, business…) Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Simplified ecosystem capital accounts in Europe • Make it feasible NOW – keep it simple • Don’t miss important issues: need a good checklist • All ecosystems: land/sea/atmosphere, and for land: urban, agriculture, forest, other natural and soil. • 6 accounts/indexes for 1 diagnosis: – 1-Biomass-Carbon // 2-Water // 3-Land-landscape // 4-Biodiversity // 5Dependency // 6-Disease prevalence – Diagnosis (instead of mere additions) and quantification: the “ecosystem distress syndrome” approach combined with basic balances… • Physical accounts first, followed by valuation of selected flows and of ecosystem depreciation (on the basis of physical degradation and restoration costs – no valuation of stocks) • Annual accounts (t-1 and time series) to meet the policy agenda • For EU27… Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Tiered approach to ecosystem capital accounting Scales Methodologies Global scale: International Conventions monitoring Simplified accounts International comparisons Markets framing & regulation National & regional government: Ministries of economy, Environmental agencies, Strategic planning, Statistical offices, Courts SEEA 2012/13 Framework Action level: Local scale, management, Site level, case studies, Projects, Business Accounting guidelines, norms Expected outcomes Global trade of ecosystem permits Programmes assessment (e.g. REDD+) International financial standards (for loans, SDR…) Contribution to international organisations Beyond GDP Accounting Measurement of progress towards Green Economy/ Green Growth/ Sustainable Development/ Resource efficiency Sector accounts Green taxes Impacts assessments, costs & benefits Local government, Agencies assessment Corporate accounting results, rating, trade Markets of specific ecosystem services, PES Total ecosystem capital potential & change t0 t1 Degradation Improvement Ecosystem physical degradation, sustainable benefits from ecosystem services and non-paid maintenance costs Consumption of ecosystem capital (nonpaid costs) Degradation Mean restoration prices Economic statistics & national accounts Sustainable benefits (Value Added (income from from key key ecosystem ecosystem services) Sustainable use coefficients Improvement DMI Carbon Conventional DMI/DMC Fossil energy Biomass/ carbon DMI Sand/ gravel Sand, gravel… DMI/ other Metals,chemicals DMI Water Water Atmosphere/ carbon assimilation Integrated Carbon Accounts Sea/fisheries Biomass/ carbon Land/ Landscape Biodiversity Integrated water accounts 1st decoupling: from material/energy inputs Jean-Louis Weber Sea/ carbon assimilation Freshwater Inland Ecosystems Total Material Input Integration of resource efficiency indicators, ecosystem capital accounts & national accounts 2nd decoupling: from environmental impacts GDP EEA Scientific Committee Workshop 5 October 2011 Gross Domestic Product (GDP) – or + Transfers with the Rest of World = Gross National Income (GNI) _ Consumption of Fixed Capital = National Income (NI or NNP) -- Depletion of subsoil assets Adjustment of National Accounts from Consumption of Ecosystem Capital • Adjusted Net Domestic Product // Adjusted Net National Income • Final Consumption at Full Price -- Final Consumption at Purchaser’s Price + Consumption of (domestic) ecosystem capital + Consumption of ecosystem capital embedded in Imports (minus in Exports) = Adjsuted Net Domestic Product // Adjusted Net National Income Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 = Final Consumption at Full Price of Commodities Is there a Green Multiplier for Green Growth/Green Economy? or Progress must be measured anyway… Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Key Indicators and Aggregates from Ecosystem Capital Accounts • Net Ecosystem Accessible Carbon Surplus (Use/NEACS reflects intensity of use; it integrates resource efficiency and ecosystem) • Net Ecosystem Accessible Fresh Water Surplus • Green Accessible Landscape Infrastructure (and demand of services in the Neighbourhood of human settlement (GINES)) • Net Total Ecosystem Capital Potential and Ecosystem Capital Degradation (integrates accessible carbon, water and landscape and biodiversity rating ; ECD is decomposed by stress factors basis to calculate Consumption of Ecosystem Capital in €) • Final Consumption at Full Price (the full cost of commodities in € integrates purchasers’ prices and non-paid domestic consumption of ecosystem capital (CEC), and relates to unfair trade and ecological debts) • Imports at Full Price (total of imports at CIF price and Ecosystem capital depreciation virtually embedded into imports) • GDCEC Adjusted Net Domestic Product (or/and Net National Income, or/and Net Savings) (complete adjustment of Net Product, Net Income or Savings includes in addition the depletion of subsoil resource. Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011 Thank you! Jean-Louis Weber [email protected] [email protected] Jean-Louis Weber EEA Scientific Committee Workshop 5 October 2011