Treatment of cultivated biological resources in SEEA-MFA

13th Meeting of the London Group on Environmental Accounting29 September - 3 October 2008,

Brussels, Belgium

Karl Schoer, consultant UNSD

Objective of this paper

(a) to introduce a solution of the issue of “cultivated crops and trees” for the SEEA-MFA by following the principal line of the London Group conclusions;

(b) to provide an improved presentation of the alternatives for dealing with cultivated crops and trees in MFA accounting;

(c) and to present the implications of the proposed approach for other MFA modules.

Category of material Inputs to the economy from the environment and the ROW economy

Outputs from the economy to the environment

and the ROW economy

"Resourceaccounts"

Water

EW-MFA "Emissionaccounts"

Covered by EW-MFA

Covered by other modules

Not covered by any module

Not applicable

EW-MFA as a fully integrated sub-module of SEEA-MFA

EW-MFA EW-MFA

EW-MFA EW-MFA

Metals and related product

Non-metallic minerals and related products

Water

Other products

EW-MFA

Flows within and from the economy

Agricultural, fishery and related products

Wood and wood produts

Fosssil fuel and related products

Air emissions

Solid waste

Water emissions

Water

Residuals

Products

Natural inputsEW-MFA

EW-MFA

EW-MFADissipative emissions

Balancing items output side

Specific substances

Ecosystem approach

Harvest approach "standard"

Extended harvest approach

Non-cultivated biological resources

Environmental input to the economy

Environmental input to the economy

Environmental input to the economy

Cultivated crops, plants and trees

Intra-economy flow Environmental input to the economy

Environmental input to the economy

Ecosystem inputs for crops, plants and trees

Environmental input to the economy

Intra- environment flow

Intra- environment flow

Animal and aquatic resources

Intra-economy flow Intra-economy flow Environmental input to the economy

Ecosystem inputs for animal and aquatic resources

Environmental input to the economy

Environmental input to the economy

Intra- environment flow

Approaches for recording cultivation of biological resources

Cultivated biological resources

Non-cultivated biological resources

Extraction of non-cultivatedbiological resources

Other economy Environment

Technicalmetabolism Biological

metabolism

Oxygen, etc.

Fuels and other produced inputs

Air emissions, waste, etc.

12.0

By-catch of fishing etc.

Material flows of extraction of non-cultivated biological resources

Natural resourcesRaw materials

Products Natural inputs Residuals Internal flows

Waste, waste water, etc.

Cultivationof plants

Other economy Environment

Biologicalmetabolism

Carbon dioxide, natural water, soil minerals552.3

Oxygen and other natural inputs9.0

3.0Fuels and other produced inputs

Carbon dioxide, water vapor 12.0

Seed, fertilizers, pesticides, irrig. water (not incorporated) 7.0

Oxygen, water vapor 201.4

Unused biomass increase 160.0

195.1

Material flows of plant cultivation:“ecosystem approach”

Technicalmetabolism

Used biomass increaseUsed biomass increase 195.1

Products Natural inputs Residuals Internal flows

Seed, fertilizers, pesticides, irrigation water 11.2 Seed, fertilizers etc. 11.2

Material flows of plant cultivation: “harvest approach”

Cultivationof plants

Other economy Environment

Biologicalmetabolism

Carbon dioxide, natural water, soil minerals552.3

Oxygen and other natural inputs9.0

3.0Fuels and other produced inputs

Carbon dioxide, water vapor 12.0

Seed, fertilizers, pesticides, irrig. water (not incorporated) 7.0

Oxygen, water vapor 201.4

Unused biomass increase 160.0

195.1

Technicalmetabolism

Used biomass increaseUsed biomass increase 195.1

Products Natural inputs Residuals Internal flows

Seed, fertilizers, pesticides, irrigation water 11.2 Seed, fertilizers etc. 11.2

Inputs Outputs

Products 14.2 Products 195.1Seed, fertilizers, pesticides etc. 11.2 Biomass increase (used) 195.1Other products 3.0

Natural inputs 561.3 Output to the environment 380.4Carbon dioxide, natural water, oil minerals etc.to biological metabolism

552.3 Oxygen, water vapor from biolological metabolism

201.4

Seed, fertilizers etc. from biological metabolism (not incorporated)

7.0

Unused biomass increase from biological metabolism

160.0Oxygen etc. to technical metabolism 9.0 Carbon dioxide, water vapor from technical

metabolism12.0

Total 575.5 Total 575.5

Inputs Outputs

Products 14.2 Products 195.1Seed, fertilizers, pesticides etc. 11.2 Biomass increase 195.1Other products 3.0

Natural inputs 195.1 Output to the environment 23.2Biomass increase ( used) from biological metabolism

195.1 Seed, fertilizers etc.(incorporated and not incorporated) from biological metabolism

11.2

Oxygen etc. to technical metabolism 9.0 Carbon dioxide, water vapor from technical metabolism

12.0

Total 218.3 Total 218.3

Approaches for recording material flows of plant culticationmn tons

"Ecosystem approach"

Product flows

Non-product flows

"Harvest approach"

Product flows

Non-product flows

Why Harvest approach as the standard?

(a) Dominance of the biological metabolism for cultivation of crops, plants and trees

(b) Harmonisation with EW-MFA (c) Analytical usefulness: ecosystem inputs are a much less meaningful indicator compared to crops and trees

(d) Data availability

Implications of using the “harvest approach”approach

EW-MFA: Change in inventories in standing crops and timber have to be introduced to the current Eurostat reporting system (but indicators will exclude change in inventories of standing timber)

Other SEEA-MFA modules:General: Only non-product flows related to biological metabolisms are affected, flows relatedtechnical metabolisms remain unchanged

Module on agriculture: Focus on product flows and specific residual flows, but no complete mass balancing

Module on forestry: Focus on product flows and specific residual flows, but no complete mass balancing

Module on water: Direct take up of natural water by cultivated plants, crops and trees is not regarded

Module on waste: Unused crop residues are not regarded as waste

Questions to the London Group

1. Do you agree that EW-MFA should be designed as a fully integrated sub-module of SEEA-MFA (harmonization)?

2. Do you agree to use the “harvest approach” as the standard concept of SEEA-MFA for reporting the material flows of cultivation of biological resources?

3. Do you agree to use the “ecosystem approach” and the “extended harvest approach” as additional concepts of SEEA-MFA in order to meet specific circumstances or specific analytical requirements?