This document discusses the Integrated Natural Capital Accounting (INCA) framework for implementing the UN System of Environmental-Economic Accounting - Ecosystem Accounting (SEEA EA) standard in the European Union. INCA provides operational procedures for ecosystem accounting, focusing on ecosystem services like crop pollination, nature-based recreation, crop and timber provision, carbon sequestration, and flood control. It is being developed by several EU agencies and directorates general to support the EU's legal proposal on ecosystem accounts, the Global Biodiversity Framework, and the EU Nature Restoration Law. Challenges include improving data availability and consistency across member states to generate comparable ecosystem accounts.
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Implementing SEEA EA in the EU
1. 1
Mayra A. Zurbarán Nucci
Joint Research Centre – D.3
GEO BON Global Conference
10 - 13 October 2023
Integrated Natural Capital
Accounting (INCA): Implementing the
SEEA EA standard in the EU
2. 2
Overview: INCA and SEEA EA
SEEA EA general framework INCA operational procedure
Direct contribution to the
development of the global
standard of UN SEEA EA
3. 3
The Integrated system for Natural Capital
Accounting (INCA)
ESTAT
DG RTD
DG ENV JRC
EEA
https://ecosystem-accounts.jrc.ec.europa.eu/
7. 7
INCA part II:
crop provision, timber provision, carbon sequestration
and flood control
Sustainability
thresholds apply
Presence/absence
of ecosystems
10. 10
Ecosystem condition accounts
The SEEA EA at the EU level
• The SEEA EA: reference framework that can
be applied at country level
Making use of more detailed data
• SEEA EA reference framework in
ecosystem and condition accounts (Eurostat
legal proposal)
11. 11
Legal proposal
Ecosystem
Accounts
(Eurostat)
Global
Biodiversity
Framework
Nature
Restoration
Law
Supporting the legal proposal
• Reporting Ecosystem Accounts and Condition
variables at country level
• Under development: guidance note on voluntary
condition variables (EUROSTAT)
https://knowledge4policy.ec.europa.eu/news/european-commission-proposes-introduction-ecosystem-
accounts_en
Neutral reporting for
condition: no comparisons to
reference levels
Reporting changes over time
12. 12
Ecosystem
integrity
Legal proposal
Ecosystem
Accounts
(Eurostat)
Global
Biodiversity
Framework
Nature
Restoration
Law
SEEA EA
spatially explicit
• Nature Restoration Law: quantification of areas to
be restored (National Restoration Plans)
Supporting the NRL and the GBF
Maes et al. 2023
https://www.nature.com/articles/s4
1467-023-39434-0
• Global Biodiversity Framework:
o Goal A: on the extent of natural ecosystems
o Goal B: on the maintenance and enhancement
of ecosystem services
o Target 2: assessment and monitoring of
degraded ecosystems - condition
13. 13
Current developments: urban ecosystem
accounts and other policy support
Other policy support
DG REGIO:
regional
growth and
NCA
JRC:
integrating
NCA data in
GEM
ECB:
assessing
nature-
related
risks
14. 14
Current developments: INCA Tool (work in
progress)
https://ecosystem-accounts.jrc.ec.europa.eu/inca-tool
Plugin for QGIS (open-source)
Possibility to generate accounts by MS or for EU
Provides SUTs as well as spatially explicit data
outputs
Currently in version 1.0
Can generate 7 ES accounts
Follows the legal proposal
15. 15
Challenges and foresight
Data availability and
consistency (spatial
and temporal resolution)
Timely validation of
models and generated
accounts to provide
scientific support
Monitoring and
assessment on MS
reporting under the legal
proposal
• EU-wide & national accounts
– comparability
Iterative process with
MS to support the legal
proposal
Links to NRL and GBF
Involvement in working groups
Focus on flow accounts
INCA operationalises the SEEA EA general framework considering the ecosystem capacity and the socio-economic side
Providing outputs in tabular and also spatially explicit
The INCA project meant to test and implement the SEEA Experimental Ecosystem Accounts in Europe.
A partnership was formed among ESTAT, DG Env DG RDT (Research and Innovation), EEA and JRC
During the INCA Implementation Phase (2016-2020), the JRC worked specifically on ES accounting.
The work was focused on ES accounts and so far there are 9 ES accounts under INCA production for 4 accounting periods. Accounts are reported both in tables as well as in maps.
INCA platform provides access to the accounts.
During this phase JRC drafted the methodological framework of INCA approach; defining that the relationship between ecosystem types ecosystem services and economic units is many-to-many
Next was to put into practice the framework: by experimenting the first ES accounting, we realized that there are two interacting components that generate the actual flow or else the use of ES (that we account in the SUT)
Ecological side: potential supply
Socio economic side: demand
When these components interact the use of ES is generated. This is what should be recorded into SUT
The interaction between the ecological and economic sides generates services when it matches; however it can also generate mismatches.
Here is the example for soil retention 2012
there are services with regeneration and absorption rates that can be exceeded, other services where the only thing that matters is the presence of ecosystems able to provide what is needed
Source: suitability' refers to the delivery of biomass and energy generated within the ecosystem.
Information' refers to the information delivered by the ecosystem (this delivery process does not modify the original state of the ecosystem).
Source: productivity' refers to the net delivery of biomass or energy eventually leaving the ecosystem.
'Sink' refers to the matter or energy absorbed by the ecosystem.
'Buffer' refers to the matter or energy flowing through the ecosystem.
We investigate the “intermediate” Vs “final” ES classification, and found out that this depends on the approach that is being used.
Here is the process from 2019 to 2022 until the proposal of Eurostat for a regulation for environmental economic accounts. In 2021 the Accounting for ecosystems and their services in the European Union report served as a basis for the legal proposal of Eurostat on a Regulation on environmental economic accounts
The reporting of ES accounts under Eurostat Regulation will be very relevant to support the reporting under Goal B of the Global Biodiversity Framework on the maintenance and enhancement of ecosystem services
In relation to ecosystem condition, and building on the experience gained in the MAES initiative (Mapping and Asssesment of ecosystems and their services), last year it was published the EU-wide methodology to map and assess ecosystem condition.
The EU-wide methodology presents an approach fully aligned with the SEEA EA, to consistently map and assess ecosystem condition in the EU across all ecosystem types, presenting useful insights to operationalise the SEEA EA at the EU level integrating different EU data stream in a systematic way across ecosystem types.
The SEEA EA is the reference framework of the EU-wide methodology that can be applied at country level. The SEEA EA is also the reference framework in the proposal for a regulation on ecosystem accounts (Eurostat).
three modules are included/ 7 (3 provisioning, 3 regulating and 1 cultural) ES. Under discussion in Council and Parliament.
Examples of voluntary indicators: Tree canopy cover in urban areas, agricultural land with high-diversity landscape features, forest connectivity and soil organic carbon in forest and agricultural areas
Common between NRL and ESTAT Lp
Mandatory: 1. Green areas in cities and adjacent towns and suburbs, 2. PM 2.5 concetration in cities 3. Soil organic carbon stock in topsoil in cropland and grassland 4. Common farmland bird index for cropland and grassland, 5. Deadwood for forest and woodland, 6. Tree cover density for forest and woodland, 7. Share of artificial impervious area cover for coastal beaches, dunes and wetlands,
When the SEEA EA for condition accounts is based on spatially explicit data, then the ecosystem condition accounts can provide very valuable information for the NRL and the GBF for the quantification of areas to be restored (required in the National Restoration Plan) and for the assessment and monitoring of degraded ecosystems, related to the Target 2 of the GBF.
A recent publication, Maes et al. 2023, shows how a forest condition index can be built at EU level using the SEEA EA to identify areas from low to high ecosystem integrity.
Use of ES accounts in policy requests:
DG Regio refers to how natural capital contributes to regional growth
JRC in Seville refers to the use of ES accounting data in general equilibrium models with a focus on agricultural sectors
European Central Bank refers to how nature based risks (in financial terms) can be assessed through ES accounts