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Natural capital accounting: a tool for biodiversity mainstreaming?

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In this presentation, Steve Bass from IIED, introduces natural capital accounting as a tool for providing evidence to support biodiversity mainstreaming.

The slides address how natural capital can be integrated into national accounts, and highlight the UN’s System of Environmental-Economic Accounts.

The presentation was shared with participants at the ‘Biodiversity mainstreaming’ workshop held in Sogakope, Ghana, from 1-3 November 2016.

More information: www.iied.org/nbsaps

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Natural capital accounting: a tool for biodiversity mainstreaming?

  1. 1. 1 Author name Date A tool for biodiversity mainstreaming? 2nd November 2016, Sogakope, Ghana Steve Bass, IIED Natural capital accounting
  2. 2. 2 1. Our progress to date in mainstreaming biodiversity We have made good progress in: • Mainstreaming devt issues into NBSAPs • Mainstreaming BD into devt plans We are now moving beyond plans to: • Mainstreaming BD into govt budgets We targeted plans and budgets because they are central to the machinery of government But they are all about intentions What might we target next to ensure real progress?
  3. 3. 3 2. One idea: mainstreaming BD into national accounts? National plan National budget National accounts What mandate to do this? Aichi Target 2 – integrate biodiversity values into national and local development strategies and plans and national accounting systems as appropriate
  4. 4. 4 What are national accounts? An integrated economic information system on how the economy functions –  stocks of capital produce…  flows of benefits that yield…  value to people, and are…  increased or decreased in the process Helps economic analysis to inform major govt decisions on policy and resource allocation But generally ignore ‘natural capital’
  5. 5. 5 How can natural capital be reflected in national accounts? UN System of Environmental-Economic Accounts (2012 ) Integrates economic and ecological understanding of environment into national accounting Natural Capital Accounts increasingly common (EU law) Accounts are physical (stocks & flows) or financial (values) Aim to improve management of scarce natural capital Most accounts focus on those parts of natural capital where env-economy links are already appreciated:  Land, Forest, Minerals, Water, Energy accounts, etc
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  8. 8. 8 Can we account for biodiversity? Biodiversity accounts are less common: Australia, Netherlands, Mauritius, UK; Namibia, Uganda? Most are species accounts – richness, abundance, distribution; or protected areas accounts Both species and PAs are: • central to BD policy • good proxies for BD • spatial • significant but ‘invisible’ in the economy (food and fibre, nutrient cycling, culture, tourism, and insurance of future benefits)
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  10. 10. 10 What would biodiversity accounts achieve? Aichi: plan/report on Aichi targets e.g. costs of achieving targets PAs: calculate economic benefits from PAs; target cost-effective new PAs; assess effects of PA fees and increasing revenues Habitat and species conservation: assess expenditure efficiency Offsets: ensure no net loss of BD assets PES: track NC stocks and ES benefit flows, compare with costs Balance sheet: is national income at expense of liquidating BD assets; or are BD assets protected for long-term growth? Local plans: BD spatial accounts link to local socio-econ statistics Investment: facts to help set resource fees and attract investors
  11. 11. 11 Best bets for BD mainstreaming Land accounts can lead to BD accounts they cover location of env processes and econ activities Focus on BD stocks initially e.g. wildlife accounts little data on BD benefit flows, so consequently undervalued Promote natural capital accounting generally i.e. NR information at the heart of government machinery! But ensure NCA is decision-centred informing important national decisions in e.g. NDP
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