Michael Vardon United Nations Statistics Division

1. Introduction to the System of Environmental-Economic Accounting for Water Part IITraining Course on Water AccountingAmman, Jordan10-13 March 2008 Michael Vardon United Nations Statistics Division

2. Outline • The economy • Statistical units, enterprises and establishments • Classification of units to industry • The environment • SEEAW • Development • Structure standard tables • Indicators • Countries implementing SEEAW • Lessons from implementation • Work by UNSD

3. Water accounting • Brings together economic and environmental infromation Integrated Environmental and Economic information Economic information Environmental information Environmental and Economic Accounts

4. Need to understand the building blocks of environment and economic statistics • These are large fields and require knowledge and experience to fully master • It is possible to understand the basics relatively quickly

5. Statistical Units • A statistical unit is an entity about which information is sought and for which statistics are ultimately compiled. It is the unit at the basis of statistical aggregates to which tabulated data refer. • These units can be divided into two categories: • (a) observation units – identifiable legal/organizational or physical entities which are able, actually or potentially, to report data about their activities; • (b) analytical units – entities created by statisticians (also referred to as statistical constructs), often by splitting or combining observation units in order to compile more detailed and more homogeneous statistics than it is possible by using data on observation units. Analytical units are not able to report data themselves about their activities, but there exist indirect methods of statistical estimation. • http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf

6. Economy Units of the economy Enterprise 1 Enterprise 2 Enterprise 3 Enterprise 4 Enterprise 5 Enterprise 6 Enterprise n Enterprise n+1 Enterprise n+2 Government Households Establishment 1 Establishment n Establishment Establishment Establishment Establishment 2 Establishment n+1 Establishment Establishment Establishment Establishment 3 Establishment n+2 Establishment Establishment Establishment

7. Enterprises Definition • An institutional unit in its capacity as a producer of goods and services is known as an enterprise. An enterprise is an economic transactor with autonomy in respect of financial and investment decision-making, as well as authority and responsibility for allocating resources for the production of goods and services. It may be engaged in one or more economic activities at one or more locations. An enterprise may be a sole legal unit. http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf

8. Establishments Definition • The establishment is defined as an enterprise or part of an enterprise that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added. • In other words, an establishment can be defined, ideally, as an economic unit that engages, under a single ownership or control - that is, under a single legal entity – in one, or predominantly one, kind of economic activity at a single physical location - for example, a mine, factory or workshop. http://unstats.un.org/unsd/isdts/docs/StatisticalUnits.pdf

9. Industrial Classification – what is an industry? • An industry is a grouping of establishments engaged in the same or similar kinds of activities • The classification used in national accounts and water accounts is the International Standard Industrial Classification (ISIC)

10. ISIC – International Standard Industrial Classification • Enterprises and establishments are classified using ISIC Revision 4 according to the goods and services they produce http://unstats.un.org/unsd/cr/registry/default.asp • Sometimes all establishments of an enterprise are classified to the same ISIC code • Sometimes establishments of the one enterprise are classified to different ISIC classes.

11. Economy International Standard Industrial Classification Units and industry classification Industry 1 Industry 2 Industry n Government Households Enterprise 1 Enterprise 2 Enterprise 2 Enterprise 4 Enterprise 5 Enterprise 6 Enterprise n Enterprise n+1 Enterprise n+2 Enterprise Enterprise Establishment n Establishment 1 Establishment Establishment 4 Establishment 2 Establishment n+1 Establishment Establishment 5 Establishment n+2 Establishment 3 Establishment Establishment 6

12. National Accounts • National Accounts aggregate the information on the economy, obtained from the units of the economy, into a standard format from which well known indicators are derived • Gross Domestic Product is the best known of the indicators from the national accounts • Use of international standard System of National Accounts (SNA), classifications (e.g. ISIC) and table formats allows for meaningful comparisons over time and between countries

13. The environment • The environment has 4 components • Land • Atmosphere (Air) • Water • Life (biodiversity) • Energy, and solar energy are also important in environment statistics • The components of the environment interact with each other and with the economy

14. The Hydrological Cycle

15. SEEAW • Integrates information on the economy and environment http://unstats.un.org/unsd/envaccounting/SEEAWDraftManual.pdf

16. Development of SEEA Water • Sub-group on Water Accounting established at the 2003 meeting of the London Group (Rome) • Sep 2004 SEEA Water discussed at London Group Meeting (Copenhagen) • May 2005 1st draft SEEA Water discussed in by sub-group (New York) • May 2006 2nd Draft discussed at the User-Producer Conference (Voorburg) • Jun 2006 2nd Draft discussed by London Group and UNCEEA • Jul-Dec 2006 SEEA Water finalised by electronic discussion • More than 20 experts participated in the Sub-group • UNSD coordinated the group and prepared the various manuscripts

17. SEEA Water – an interim international statistical standard • Part 1 of SEEA Water was adopted by the United Nations Statistical Commission in March 2007 as an interim statistical standard • Part 2 contains the elements of SEEA Water for which there is less country experience and there is still some debate • SEEA Water has been recognized as useful by the users of information

18. SEEW - Structure 9 Chapters, 2 parts: • Part 1 • Ch 1. Introduction • Ch. 2 Water Accounting Framework • Ch. 3 Physical Supply and Use Tables • Ch. 4 Emission Accounts • Ch. 5 Hybrid and Economic Accounts • Ch. 6 Asset Account • Part II • Ch. 7 Quality Account • Ch. 8 Valuation • Ch. 9 Policy use

19. SEEW – Focus of workshop 9 Chapters, 2 parts: • Part 1 • Ch 1. Introduction • Ch. 2 Water Accounting Framework • Ch. 3 Physical Supply and Use Tables • Ch. 4 Emission Accounts • Ch. 5 Hybrid and Economic Accounts • Ch. 6 Asset Account • Part II • Ch. 7 Quality Account • Ch. 8 Valuation • Ch. 9 Policy use

20. 12 Standard Tables Our focus will be on the first 8 tables and the 12th table • Physical supply • Physical use • Gross and net emissions • Emissions by ISIC 37 • Hybrid (Monetary and Physical) supply • Hybrid use • Hybrid supply and use • Hybrid water supply and sewerage for own use • Government accounts for water related collective consumption services (Monetary) • National expenditure for waste management (Monetary) • Financial accounts for waste water management (Monetary) • Asset account (Physical) 12 Supplementary tables

21. Example Standard Table VI: Hybrid use table

22. Supplementary tables and further disaggregation of data items • The 12 SEEAW standard tables are the minimum data that countries are encouraged to compile • Supplementary tables are presented • Data items and industries can be further disaggregated

23. Example of disaggregated data • The industry 12 SEEAW standard tables are the minimum data that countries are encouraged to compile • Supplementary tables are presented • Data items and industries can be further disaggregated

24. Indicators and policy uses of SEEAW Source of pressure on water resources: • Macro trends in total water use, emissions, water use by natural source and purpose, etc. ‘Decoupling’ economic growth and water use, pollution • Industry-level trends: indicators used for environmental-economic profiles • Technology and driving forces: water intensity/productivity and total (domestic) water requirements to meet final demand • International transport of water and pollution

25. Audiences for information Public Politicians Policy Makers Strategic planners Accounting SNA, SEEA, SEEAW Researchers Indicators are part of communicating information

26. Indicators: economic growth and water pollution Netherlands: water pollution and economic growth, 1999-2001

27. Indicators: economic growth and water use Botswana: water use and economic Growth, 1993-1998

28. Environmental Economic Profiles Sweden 1995

29. International transport of pollution Share of pollution in rivers in the Netherlands originating abroad

30. Projecting future water demandsAustralia 2050

31. Key lessons from countries implementing SEEA Water 1. Build on existing statistical/scientific knowledge and information 2. Cooperation essential • Within statistical offices • Between statistical offices, water departments, economic/planning departments and agricultural departments • With the water supply industry • With the scientific and research communities • Between users and producers of information 3. A phased approach is needed • Start with issues of most importance. In general for water scarce countries it has been water supply and use. In industrialized countries it has been water pollution. 4. Pilot or experimental accounts are very useful • Users will appreciate the benefits more easily with concrete examples, even if they are small scale.

32. 22 countries have water accounts(As report in the Global Assessment of Environmental Statistics and Accounts 2006) Mexico Mongolia Nauru Netherlands New Zealand Papua New Guinea Philippines South Africa Spain Sweden Tanzania Countries accounts are at different stages of development

33. 11 countries want to develop water accounts(As report in the Global Assessment of Environmental Statistics and Accounts 2006) • Bahamas • Bolivia • Burkina Faso • Cuba • Georgia • Guatemala • Jordan • Kiribati • Mauritius • Tunisia • Turkey

34. UNSD – current work on water accounts and water statistics • Developing International Recommendations for Water Statistics • Developing training materials • Conducting training courses • Assisting countries with implementation via: • Country missions • Telephone and email • Work with other partners e.g. UN regional commissions and other UN agencies, Medstat, OECD, Eurostat, World Bank, Asian Development Bank.

35. 60 countries have requested assistance or advice from UNSD on the implementation of SEEAW Iraq Israel Jamaica Jordan Kiribati Korea, Republic of Kuwait Lebanon Mauritius Mexico Mongolia Morocco Mozambique Namibia Nauru Nepal Netherlands New Zealand Oman Palestine Panama Papua New Guinea Peru Philippines Qatar Saudi Arabia South Africa Spain Sri Lanka Suriname Syria Tanzania Trinidad and Tobago Tunisia Turkey Ukraine United Arab Emirates Vietnam Yemen Zimbabwe Algeria Antigua and Barbuda Armenia, Republic of Bahamas Bahrain Bolivia Botswana Brazil Bulgaria Burkina Faso Chile China Colombia Cuba Dominican Republic Egypt Georgia Guatemala India Indonesia

36. International Recommendations for Water Statistics (IRWS) • UNSD is developing IRWS • The IRWS will define and support the compilation of basic statistical data to support the SEEAW and the water indicators used by international agencies (e.g. the FAO, World Bank and UN MDGs) • It will provide information on the concepts, sources and methods needed for basic water statistics • It will also provide practical guidance on the compilation of water accounts and indicators • A draft of the IRWS should be available for discussion in mid-2008. • An expert group meeting is planned to discuss the draft

37. Contact details Michael Vardon Adviser on Environmental-Economic Accounting United Nations Statistics Division New York 10017 USA Room DC2 1532 Phone: +1 917 367 5391 Fax: +1 917 363 1374 Email: vardon@un.org