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midsummer.ca
UNFC and the UN System of
Environmental-Economic
Accounting (SEEA)
Rob Smith, Principal
Midsummer Analytics
Training on application of UNFC
for sustainable resources
management
UNFC and UNRMS Workshop on Tools
for Managing Resources for
Sustainable Development
29–30 April 2019
Palais des Nations, Geneva
What is the SEEA?
• The System of Environmental-Economic Accounting 2012 (SEEA) was adopted by the United Nations to promote integrated environmental-economic accounting
• Like the System of National Accounts, the SEEA is an international statistical standard
– But for the environment
2
The SEEA includes three sets of
accounts
• Natural asset stock accounts – in situ quantities of natural resource assets
• Physical flow accounts – flows of resources and wastes to and from the environment
• Activity/purpose accounts – environmental transactions that are already captured in the SNA but hidden because of aggregation (e.g., production of “clean-tech”)
3
*UNFC*
SEEA natural resource
stock accounts - framework
4
Opening stock (physical or monetary)
Changes* Additions: growth, discoveries, reclassifications, reappraisals, revaluations
Reductions: Extractions, natural losses, catastrophes, reclassifications, reappraisals,
revaluations
Closing stock (physical or monetary)
*Not all changes apply to all stocks
Mineral and energy asset
accounts
• Mineral and energy resources include:– oil, natural gas, coal, peat, metallic minerals and non-
metallic minerals
• Since they are non-renewable, there is particular interest in understanding the rate at which these assets are extracted
• Since they are found underground, their quantities are often not known with a great deal of precision – Consequently, deposits are categorized into three classes
• Class A: Commercially Recoverable Resources
• Class B: Potentially Commercially Recoverable Resources
• Class C: Non-Commercial and Other Known Deposits
– Only Class A resources are accounted for in detail
5
Structure of a Basic Sub-soil Asset
Account
6
SEEA sub-soil asset accounts and
the UNFC
7
Structure of physical mineral and
energy accounts for Class A
Resources
8
Valuation of sub-soil resources
• Five key aspects:
– the measurement of resource rent
– the determination of the expected pattern of
resource rents based on expected extraction
profiles and prices
– the estimation of asset life - *UNFC*
– the selection of a rate of return on produced
assets
– the choice of discount rate
9
Structure of monetary mineral and energy
accounts for Class A Resources
10
Australia - Natural assets and
produced assets
• The value of Australia’s environmental assets increased 95% over the period 2005-06 to 2014-15
• Environmental assets made up the largest share of Australia’s capital base in 2014-15
11
Source: Australian Bureau of Statistics, Environmental Accounts 2016
Australia – Mineral and energy
assets
12Source: Australian Bureau of Statistics, Environmental Accounts 2016
Canada – Mineral, energy and timber
assets, 1979-2015 (current prices)
13Source: Statistics Canada, CANSIM Table 153-0121
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Energy Minerals Timber
Netherlands – Physical account of
natural gas assets
14
Source: Statistics Netherlands, Environmental Accounts 2013
Netherlands – Decomposition of
change in natural gas assets
15Source: Statistics Netherlands, Environmental Accounts 2013
United Kingdom – Physical accounts for
oil and natural gas assets
16
Oil
Natural gas Source: UK Office for National Statistics, Environmental Accounts 2015
Thank you
• Rob Smith, Principal
Midsummer Analytics
Ottawa, Canada
• Skype: smitrob1965
• +1-613-716-5230
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