Implementation Of SEEA And Ecosystem Accounts In The .

Implementation of SEEA and EcosystemAccounts in the Russian Federation:Prospects, Opportunities and ChallengesJoint OECD/UNECE Seminar on the Implementation of SEEA13-14 February 2020, GenevaMarina Klevakina, Deputy Head,Agricultural and Environmental Statistics Department,Russian Federal State Statistics Service (Rosstat)Georgy Fomenko, Head of Research,Cadaster Institute, Doctor of Science in Geography,Professor

Relevant legislation in the Russian FederationFederal Law of November 29, 2007 N 282FZ (as amended on April 18, 2018)“On Official Statistical Accounting and theSystem of State Statistics in the RussianFederation”Official statistical methodology, corresponding to internationalstandards and principles of official statistics, which isprepared by the subjects of official statistical accounting andapproved by them on agreement with RosstatFederal Law of January 10, 2002 N 7-FZ(as amended on July 26, 2019)“On Environmental Protection”Formalized need for economic evaluation of natural andnatural-anthropogenic objects (Article 5)Order of the Government of the RussianFederation of May 06, 2008 N 671-r(as amended on November 29, 2018)“On Approval of the Federal Plan ofStatistical Work”Preparation and dissemination of official statistics on SEEAaccounts indicators by federal executive bodies as officialstatistics stakeholders and providersDecree of the Government of the RussianFederation dated 06.06.2017 N 1170-r“On the Coordination Work of the Bodiesof Official Statistical Accounting byFormation and Providing to InternationalOrganizations the Official Statistics onReaching of Sustainable DevelopmentGoals in the Russian Federation”Russian Federal State Statistics Service (Rosstat) as anofficial responsible coordinator on formation and providing tointernational organizations the official statistics on reaching ofSDGs in the Russian Federation in accordance withinternational standardsOrder of the Deputy Chair of theGovernment of the Russian Federationdated November 19, 2019 N AG-P9-10033“On Development of an Action Plan (RoadMap) for the Implementation of PriorityAccounts of the System of EnvironmentalEconomic Accounting”Objective to develop and submit to the Government of theRussian Federation an action plan (“road map”) for theimplementation of priority accounts of the system ofenvironmental-economic accounting2

Actions taken to include natural assetsinto the SNA balance sheet1. DEVELOPMENT OF METHODOLOGICAL APPROACHES TO THE EVALUATION OF NATURAL RESOURCES AT THECURRENT MARKET VALUE AND CALCULATION OF THE PRODUCTIVITY OF NATURAL RESOURCESMineral andenergyresources2013Water resources2013Non-cultivated biological animaland plant resources2014Lands2014Aquaticresources2015Natural resourceproductivity20182. APPROVED STATISTICAL QUESTIONNAIRE AND APPLIED METHODS OF ASSESSING NATURAL RESOURCES ATTHE CURRENT MARKET VALUE (orders of the Russian Ministry of Environment).Methodology forevaluation of mineralresources in physicaland monetary termsand their changes forthe rmation on theCurrent Market Valueof Mineral Reserves”(2017)Methodology forevaluation ofuncultivated biologicalresources in physicaland monetary terms andtheir changes for theyear(2018)Balance sheet as of the end of 2017 (fragment)AssetsNon-financial assetsMethodology for evaluationof water resources inphysical and monetaryterms and their changes forthe year(2019)Methodology forevaluation of aquaticresources in physical andmonetary terms and theirchanges for the year(pending approval)Billion RUB902 220411 037Mineral and energy resources55 238Non-cultivated biological animal and plant resources5 7613

Methodological developments for particular accountscompilation by Russian Federal State Statistics ServiceExperimentalcompilationDevelopmentof appliedalgorithmsAir emissions account20192020Physical water flow account20192019Environmental protection expenditureaccount20182020Environmentally related tax revenueaccount20182019Environmental subsidies and similartransfers account2019Asset accounts for timber resources2019Project ofguidelines2020202020204

Roadmap for the implementation of SEEA accounts inRussian statistical practicePurpose:approving the process of the consistentdevelopment and implementation of SEEA accountsSet of measures: normative legal support of data production andinteragency data exchange guidelines for data production providing of official statisticsImplementation principlesStep-by-stepimplementationof SEEAaccountsFlexible andmodularapproachInteragencyinteraction(working groups)Criteria for selection of priorityaccountsInformation availability – availability ofofficial data to fill in the cells of the account,as well as the possibility of obtaining missingdataGuidelines elaboration – availability of clearand well-defined content of indicators,guidelines and algorithms for obtaininginformation and producing dataRelevance – implementation of nationaldevelopment priorities and the need forinternational comparisons5

Prospects for the implementation of SEEA accounts in the RussianFederationShort term (2020-2024) – priority SEEA accountspriority SEEA accounts which do not require significant groundwork, provide information for achievement of thedevelopment priorities of the Russian Federation, which are relevant for international comparisons, calculations of SDGindicators and OECD green growth indicatorsMedium termSEEA accounts which are relevant for international comparisons but require significantresources for guidelines elaboration and receiving necessary data.Ecosystem accountsLong termSEEA accounts which require significant resources for guidelines elaborationand receiving the necessary data6

SNA and SEEA: Systems of integrated informationSource: https://seea.un.org/sites/seea.un.org/files/s2 - seea overview marko.pdf7

Prerequisites for development of SEEA and ecosystem accounts inthe Russian FederationSEEA:Normative legal basis (laws, decrees of RussianGovernment, acts of Rosstat and other interestedagencies)Proved feasibility of implementation ofCF SEEA-2012 in conditions of RussianstatisticsAvailability of a significant amount of official data.Capacity for using expert data (with furtherapproval as official data)Accumulated various experience of using SEEAin the field of territorial administration – at thenational level, at the level of the subject of theRussian Federation, at the local levelECOSYSTEM ACCOUNTING:Priority areas of national policy include: Conservationand sustainable use of ecosystem services, inclusion ofthe value of ecosystem services in the macroeconomicdevelopment indicators (natural capital).The concept of ecosystem services is included in thesystem of national standardsMethodology was implemented in various projects (EIA,economic assessment of environmental damage, landtax adjustment)Available data for the production of indicators,especially in physical terms (provisioning ecosystemservices). Capacity for using expert data (value transfer,etc.)Increasing implementation to solve the problems ofsustainable use of natural resources and environmentalprotection8

Opportunities to use SEEA and ecosystem accounting to reducerisks of strategic management errorsEnvironmentally sustainabledevelopment of the natural resourcebusiness, increasing employment, taxrevenuesIndicators of volumesand values of stocks ofnatural resources, andecosystem accountingIndicators of volumesand values of use ofnatural resources, andecosystem accountingIndicators of risks ofdepletion anddegradation of naturalresources, andecosystem accountingDecisionmakinginformationsystem forterritorydevelopmentIncreasing capability to attractinvestments in the natural resourcesector (in accordance with sustainabledevelopment principles)More effective choice of methods ofenvironmental management andenvironmental protectionDevelopment of measures to preventdepletion of natural resources andecosystem services of a territory(decrease of stocks and degradation)9

Opportunities to use SEEA and Ecosystem Accountingin business management1. Standards of environmental and social responsibility of theInternational Finance Corporation1.1 Use of SEEA and ecosystem accounting in environmental impactassessmentStandard 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources At the planning stage of the investment project it’s required to assess the direct and indirectimpacts on biodiversity and ecosystem services. It’s necessary to take into account differences in values of biodiversity and ecosystem servicesfor affected communities and other stakeholders.1.2 Expansion of cost-benefit analysis2. Determination of threshold values in consumption of naturalassets and in environmental impacts10

Main challenges in SEEA implementation1. Challenge of obtaining necessary data including: (a) receiving official data - statistical andadministrative, (b) analyzing available expert data and determining the possibility for its usein compiling SEEA accounts, (c) institutionalizing expert data for use in SEEA2. The need for the use of cost-benefit analysis harmonized with SEEA is not legislated3. Lack of interest of industry departments in SEEA development and using of its results4. Challenge of integrating SEEA data into SNA tables (e.g., disaggregating values of naturalresources by economy sectors)11

Main challenges in implementation of ecosystem accountingSEEA estimates only part of the ecosystem services provided by a territory and consumed bybeneficiaries: (1) provisioning (natural assets), (2) cultural (recreation). Important regulatingfunctions of ecosystems are not assessed.Source: www.ehu.eus1. Challenge of the transition from the Labor Theory of Value to the Marginal Theory of Value, significantunderestimation of natural wealth. This is especially true for post-Soviet experts, who mainly considermoney as a measure of labor, but not a measure of wealth.2. Challenge of double counting in implementation of SEEA and ecosystem accounting.12

Main challenges in implementation of ecosystem accountingEcosystem services are always territory-specific. Their consumption, as well as restoration (e.g.,forest planting) is always associated with stakeholders (beneficiaries, donors in the restoration ofenvironmental components)Source: Locatelli B., Vallet A., Fedele G., Rapidel B., 2017. Analyzingecosystem services to manage territories. In: Living territories totransform the world, Cirad-Quae, pp.106-1103. Lack of attention to the scale of ecosystem services assessment in management, and to the"targeting" of measures and potential conflicts (e.g., loss of income of the local population in favor ofmaintaining global ecosystem services). Cases of assessing ecosystem services in general, withoutidentifying specific beneficiaries4. Lack of understanding of the role of unified principles of ecosystem accounting in EnvironmentalImpact Assessment (EIA) and Strategic Environmental Assessment (SEA), using cost-benefit analysis.13

Thank you for your attention!Russian Federal StateStatistics Service(Rosstat)E-mail: stat@gks.ruResearch and ConsultingSyndicateCadaster Institutewww.gks.ruE-mail: info@nipik.ru39, Miasnitskaya St., bldg.1,Moscow, Russia, 107450www.npo-kad.ruPhone: 8 (495) 607-46-771 Belinskogo Street,Yaroslavl, Russia, 150043Phone: 8 (4852) ary14

accounts indicators by federal executive bodies as official statistics stakeholders and providers Order of the Government of the Russian Federation of May 06, 2008 N 671-r (as amended on November 29, 2018) “On Approval of the Federal Plan of Statistical Work” Russian Federal State Statistics Service (Rosstat) as an