“Ecosystem accounting is a coherent and integrated approach to the assessment of the environment through the measurement of ecosystems, and measurement of the flows of services from ecosystems into economic and other human activity” (SEEA EEA 2012)

Introduction

The environment is essential to society and the economy. Therefore, nature and its benefits should be recognized as an asset that must be maintained and managed, with its contributions (services) measured and considered in decision making.  

Some economic indicators like Gross Domestic Product (GDP) provide important information about the state of the economy but omit the crucial role of nature and the country’s natural wealth. By integrating environmental assets and services with data on economic and other human activity, we include nature in decisions about economic development. 

The System of Environmental Economic Accounting (SEEA), adopted by the United Nations Statistical Commission in 2012 and ratified in 2021, provides a common framework for organizing and presenting statistics on the environment and its relationship with the economy. 

The System of Environmental Economic Accounting

Ecosystem Accounting (SEEA EA)

Ecosystem accounting has emerged as an innovative and exciting component of natural capital accounting. The SEEA Ecosystem Accounting Ecosystem Accounting (SEEA EA) examines the interactions between ecosystems and the economy by looking at ecosystems and their contribution to human well-being in the form of identifiable ecosystem services.  

Most ecosystems services are public goods lacking markets that provide clear prices to aid in valuation. One of the great advantages of an accounting framework is that it allows the contributions of ecosystems to be expressed in financial terms. The SEEA EA is at the forefront of developing rigorous monetary estimation approaches that are consistent with the System of National Accounts. 

The Core Ecosystem Accounting Accounts

ECOSYSTEM EXTENT: This account serves as a common starting point for ecosystem accounting. It organizes information on the extent of different ecosystem types (e.g., forests, wetlands, agricultural areas, marine areas) within a spatial area (administrative region, river basin, etc.) in terms of area.

ECOSYSTEM CONDITION: This account measures the overall quality of an ecosystem asset and captures, in a set of key indicators, the state or functioning of the ecosystem in relation to both its naturalness and its potential to supply ecosystem services.

ECOSYSTEM SERVICES: This set of ecosystem accounts measures the supply of ecosystem services and their corresponding use and beneficiaries, classified by economic sectors used in the national accounts. The ecosystem services accounts can be compiled in both physical and monetary terms.

ECOSYSTEM MONETARY ASSET: This account records the monetary value of opening and closing stocks of all ecosystem assets within an ecosystem accounting area along with additions and reductions to those stocks.

THEMATIC ACCOUNTS: These are standalone accounts, or sets of accounts, that organize data around specific policy relevant themes. Biodiversity, ocean, and carbon are three high-profile themes. Other important thematic accounts include accounting for protected areas, wetlands, forests, and urban areas.

Information extracted from Introduction to SEEAA Ecosystem Accounting. For more information, visit hhttps://seea.un.org/Introduction-to-Ecoystem-Accounting