Global initiatives Natural capital accounting

1 global initiatives

1.1 system of environmental-economic accounting
1.2 wealth accounting , ecosystem partnership services
1.3 ecological footprint accounts
1.4 inclusive wealth index
1.5 beyond gdp
1.6 economics of ecosystems , biodiversity
1.7 natural capital declaration

global initiatives

general commitment international community support development of natural capital accounting motivated on brundtland report in 1987 , 1992 rio summit. @ summit in particular, agenda 21 – in chapter 40 called signatories develop quantitative information regarding activities – adopted.

system of environmental-economic accounting

in september 1992, commission on environment of organization of american states (oas) permanent council held seminar on natural resource , environmental accounts development policy. many of country participants expressed interest in developing accounting capacities natural resources. proposal made @ time create program coordinate , strengthen efforts of countries , institutions undertaking such initiatives.

the development of first system of environmental-economic accounting (seea) in 1993 (seea-1993) major step towards establishing standards around integrating environment national accounts, , subsequently, environmentally-adjusting or “greening” macroeconomic indicators such gdp. while seea-2003 , subsequent revisions being undertaken 2013 have expanded range of analyses within framework, purpose of seea has remained same. accounting framework records stocks , flows relevant both environment , economy. central framework comprises 3 main accounts can integrated existing united nations system of national accounts (sna), , each focuses on different aspect of interaction between economy , environment: physical flow accounts; functional accounts environmental transactions; , asset accounts in physical , monetary terms.

the latest version of seea (q3, 2012) has 2 other parts, aside central framework: seea experimental ecosystem accounts , seea extensions. experimental ecosystem accounts, specifically, introduces accounting framework ecosystems, despite fact many of relevant stocks , flows centered on non-market assets. while of measurement concepts involved in accounting process still evolving, possible eventual valuation of ecosystems , depletion included in calculations of environmentally-adjusted macroeconomic indicators. has implications future policy, since emphasis on projects or activities undertaken governments change, depending on how above-mentioned measurements impact respective accounts, , subsequent environmental adjustments indicators.

the london group on environmental accounting , un committee of experts on environmental-economic accounting 2 groups, created in 1994 , 2005 respectively, assist in development of seea , implementation. well, working group on environmental auditing, subgroup of international organization of supreme audit institutions, working improve auditing standards related environmental issues.

wealth accounting , ecosystem partnership services

the ability of developing countries build natural capital account capacities being improved through wealth accounting , ecosystem partnership services (waves), encouraging development of relevant measurement frameworks. waves global partnership inaugurated in october 2010 world bank president robert zoellick @ convention on biological diversity cop-10 meeting in japan. aims promote sustainable development encouraging inclusion of natural capital measurements in national accounts. several projects have been initiated in developing countries such botswana, colombia , madagascar view improving capacity implement seea, in collaboration unep, undp, united nations statistical commission, , financial support of ngos , governments of australia, canada, france, japan, norway , united states.

ecological footprint accounts

alternately, there have been many attempts move away integrated accounts, , towards novel sustainability indices or statistics. ecological footprint accounts, developed monfreda et al. (2004) , since 2007, global footprint network, or proposal 9 planetary boundaries within humans can safely operate, rockström et al., projects advocate new approaches global sustainability.

inclusive wealth index

the un international human dimensions programme has created inclusive sustainability indicator, inclusive wealth index (iwi), measures productive bases of economy: produced, natural , human capital, , based on these 3 assessments, calculates trajectory of country’s wealth. calculation of natural capital in iwi based on shadow value of economy’s natural capital assets.

a similar conceptual direction taken commission on measurement of economic performance , social progress, under direction of economists joseph stiglitz, amartya sen , jean-paul fitoussi, @ behest of former french president nicholas sarkozy, in 2008. authors concluded pragmatic measure of sustainability combine indicator based on extended wealth approach, , small dashboard of physical indicators.

while have different theoretical underpinnings, these approaches have in common each other fundamental recognition of limitations of traditional indicators in measuring economic performance , social progress, , importance of sustainability in long-run.

beyond gdp

there have been several initiatives organized @ regional level seek move away traditional gdp major indicator of wealth , well-being. first of these beyond gdp, initiative started eu in 2007 develop highly aggregated environmental , social indicators , extend national accounts environmental , social issues.

in may 2012, summit sustainability in africa held in gaborone, botswana. brought leaders ten african countries discuss sustainable development planning, , in particular, commit set of goals on accounting natural capital, , integrating national planning, reporting , policies. commitment took form of gaborone declaration sustainability in africa

economics of ecosystems , biodiversity

four publications presented @ cbd cop-10 economics of ecosystems , biodiversity (teeb) initiative: teeb ecological , economic foundations, teeb in national , international policy making, teeb in local , regional policy, , teeb in business , enterprise. these, along interim report released @ cbd cop-9 in bonn, germany, represent comprehensive analysis of economic value of biodiversity, , consequences holds different levels of public , private policy analysis. teeb seeks systematize role of corporations, under teeb business coalition (2012), formulating standards , assessing externalities. since natural capital accounting requires identification of replenishment activities environmental degradation, inclusion of corporations valuation process key.

natural capital declaration

in june 2012, rio+20 conference “marked watershed in world wide interest on natural capital accounting.” natural capital declaration (ncd), commitment ceos in financial sector embed esg considerations in management , investment activities, revealed prior conference. well, world bank started waves 50:50 initiative analyze progress , next steps required improving efforts account natural capital , enhance countries’ sustainable decision-making capabilities. @ time of conference, 62 countries, 90 corporations, , 17 civil society members had signed on campaign.